Source: Bloomberg

Global warming and competition with plant-based proteins could hit major meat companies’ profits hard in the long term unless they change strategy, said Fairr, a network of investors.

That’s because heat stress is likely to raise mortality of cattle and other livestock, poor crop yields will increase animal-feed costs and environment-linked taxes risk curbing meat demand, according to a Fairr study designed to help investors better assess the impact of climate change on their holdings. 

Fairr, whose members manage $20 trillion in assets, is introducing a tool to help model how companies may be affected by climate change and the transition to a low-carbon economy.