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How can financial institutions support more sustainable proteins in global food systems?
Financial institutions have a unique and powerful ability to influence how food is produced. By incorporating animal welfare and the protein shift into their policies and decision-making processes, institutions can help reduce risks, support sustainable food systems, and drive meaningful change across global markets.
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Both issues are interconnected: improving farm animal welfare reduces negative impacts within current systems, while supporting the protein shift helps diversify protein sources, strengthen resilience, and align food systems with climate and nature goals.
Financial institutions can integrate animal welfare and protein-shift considerations into:
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Financing decisions, analysis, policies, and procedures
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Due diligence and investment assessments
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Active ownership, engagement, and stewardship practices
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Advisory services, sustainability strategies, and disclosures
The bottom line
01
Animal agriculture and poor animal welfare lead to material risks.
Poor welfare practices contribute to climate, biodiversity, public health, and reputational risks. Financial institutions with exposure to intensive animal production face growing scrutiny from regulators, investors and consumers.
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The protein shift presents major opportunities.
The transition toward more sustainable and diversified proteins—including plant-based, fermentation-derived, and cultivated options—creates opportunities for innovation, value creation, and long-term portfolio resilience.
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Integrating animal welfare and protein shift considerations strengthens ESG performance.
Addressing these issues enhances alignment with international frameworks such as the SDGs, TCFD, and emerging nature and biodiversity standards, helping institutions meet evolving stakeholder and regulatory expectations.
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Financial institutions have the power to shape a more sustainable food system.
By setting clear expectations, engaging clients, and financing solutions that safeguard welfare and support the protein shift, financial institutions can reduce risk, unlock opportunity, and contribute to a more humane, resilient, and sustainable future.
References to animal welfare
Financial institutions and reporting standards around the world include animal welfare in their sustainability policies, ESG policies or general standards.
The wording varies from institution to institution, and we aren’t necessarily recommending the wording used within these examples because the inclusion of animal welfare within policies should go beyond a brief mention. Some of these examples are not perfect, but they represent meaningful progress.
Steps to take action
internal buy-in
Having internal buy-in about the inclusion of animal welfare within policies, practices and procedures is the first step. Identify key personnel to lead this effort internally.
CONTACT THE FARMS INITIATIVE
The FARMS Initiative team will meet with you and discuss a customized solution based on each institution's needs.
GET STARTED!
Partner with us to begin implementing practical, high-impact changes—helping your institution safeguard welfare, shift proteins, and support sustainable solutions.