New report outlines opportunities for food companies to address agricultural methane pollution

As extreme weather events impact farm productivity and animal health and disrupt supply chains, a new Ceres’ report outlines the significant opportunities for food companies to drive innovation, build resilience, and create a more sustainable and profitable industry. 

Ceres’ report, Unlocking Opportunity: Addressing Livestock Methane to Build Resilient Food Systems, highlights the financial case for corporate action on agricultural pollution, including a first-of-its-kind analysis of food companies’ exposure to methane risks based on their position within the industry. This analysis also contains recommendations for sub-industries and more than a dozen examples of how companies across the food value chain are reaping benefits from methane action – from enhanced operational efficiency to expanded market reach.  

“Every actor in the food value chain has a role to play in tackling emissions that are created on the farm, which needs to be done if we are to safeguard corporate bottom lines and local economies and communities,” said Carolyn Ching, director of research at Ceres. “By laying out the substantial opportunities of methane action while breaking down priority actions by sub-sectors, Ceres is providing a critical resource for companies to address the material risks they face and for financial institutions to understand what companies are considering when addressing livestock methane pollution.” 

The food sector contributes one-third of global greenhouse gas emissions, a hefty portion of which are from methane. Methane is a dangerous pollutant – with 80 times the warming potential of carbon dioxide – and relatively short-lived in the atmosphere, just 12 years versus carbon dioxide's 100+ years. As the report underscores, lowering these emissions is an opportune way for companies, especially those that source dairy, beef, and pork, to address the business challenges caused by worsening and costly heatwaves, floods, drought, storms, and disease outbreaks. 

Since food companies face varying degrees of exposure to risks depending on what they produce, Ceres’ report delivers a detailed breakdown of methane risk by sub-industries, from farm to retail. This analysis notably reveals where the greatest opportunity for methane action exists throughout the food value chain based on companies’ level of exposure, with the highly exposed sub-industries like packaged foods and meats having significant opportunity for action. 

Another key area of opportunity that Ceres’ report illustrates is the innovation that major food companies are driving across the sector. A range of proven solutions are being successfully deployed to reduce on-farm methane, such as feed additives and anaerobic digestors. Ceres described many of these innovative solutions in a 2023 report.   

A few market-leading examples covered in Ceres’ new report include:  

• Danone Ventures: Danone’s corporate venture group has invested in technology providers such as Symbrosia, a seaweed-based feed additive to reduce methane emissions, and ImaginDairy, producer of animal-free dairy products. 

• Nestle: Nestlé’s Institute of Agricultural Sciences leads research on ways to reduce dairy emissions, including methane-reducing feed supplements, manure management, and improved diets. It also works closely with external stakeholders to test solutions before they are implemented on farms in its supply chain. 

• Mars: The packaged foods company partners with dairy cooperatives and manufacturers globally to work with farmers to adopt practices and technologies that reduce methane emissions, such as improving feed ingredients and introducing feed additives. 

• Maryland Virginia Milk Producers Cooperative Association: The cooperative partnered with customers throughout its value chain, including Turkey Hill, Giant, Starbucks, and the Alliance for the Chesapeake Bay, to fund sustainability projects on the farm through cost-sharing opportunities, direct funding from customers, and grants from government programs. 

As Ceres’ report and these examples depict, food companies can play a critical role in advancing innovation by identifying workable financing structures, such as cost-sharing, procurement policies, and supply chain partnerships, to fund practice adoption with farmers. And companies can receive a return on investment by developing methane-reducing technologies that can result in cutting-edge products and a competitive advantage in the market. 

View Ceres’ report Unlocking Opportunity: Addressing Livestock Methane to Build Resilient Food Systems. 

About Ceres 

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and sustainable world. United under a shared vision, our powerful networks of investors and companies are proving sustainability is the bottom line—changing markets and sectors from the inside out. For more information, visit ceres.org.