Industrial Agriculture Is Destroying the Planet

A report sponsored by some of the largest food and agricultural companies finds that the transition to sustainable practices is happening too slowly.

Food companies and governments must join forces immediately to change global agricultural practices, or they risk «destroying the planet«, advocates warn.

The report, produced by a working group within the Sustainable Markets Initiative (SMI), a network of global CEOs focused on climate issues founded by King Charles III, is being published just days before the start of the UN COP27 climate summit in Egypt.

A farmer stands in the background with hands on hips while processing heat- and drought-withered tomatoes hanging on the vines.

Many of the world's largest food and agricultural companies have championed sustainable farming practices in recent years. Regenerative cultivation methods, which prioritise the reduction of greenhouse gas emissions, soil health and water conservation, are now being applied to 15% of arable land.

However, the pace of change is far too slow, according to the report, and must triple by 2030 for the world to have any chance of keeping the temperature rise below 1.5°C – a threshold whose breach, scientists believe, would trigger even more devastating climate change on the planet.

The report was signed by Bayer, Mars, McCain Foods, McDonald's, Mondelez, Olam, PepsiCo, Waitrose and others. They represent a powerful political and corporate force with influence over the food supply chain around the world. According to critics, they are also among the main parties responsible for the mismanagement of climate change. One of them described the report as «smoke and mirrors», which could not resolve the actual crisis.

Food production is responsible for one third of all greenhouse gases emitted by humans, and a number of signatories have been accused of environmental violations and «greenwashing». Activist Greta Thunberg is boycotting COP this year, having described the world summit as a PR stunt «in which leaders and those in power seek to attract attention«.

».«We are at a critical point where action must be taken», said the chair of the task force and outgoing Mars CEO Grant Reid. «The connection between human health and the health of the planet is clearer than ever before…» Large food corporations and agriculture must play a major role in changing this, said Reid. «It will not be easy, but we must make it happen», he said.

Agriculture is the largest economic sector in the world. Pasture and arable land accounts for around 50% of the Earth's habitable land and consumes approximately 70% of freshwater reserves. The climate crisis poses major challenges for the industry worldwide, yet the group's call for change comes at a time when the sector, which employs 1 billion people, is facing supply chain problems in the wake of the coronavirus pandemic and rising inflation. Scepticism is also growing towards the promises of companies that have contributed to climate change.

These current problems must not distract from the necessity of change, the report states. «Given the inflationary environment and widespread supply chain disruptions, it would be easy to lose focus on the longer-term challenge of expanding regenerative agriculture. But we believe we cannot afford to lose sight of the urgency. We must act now to avoid more acute crises in the future«, the authors of the report write.

Sunny George Verghese, CEO of Olam, one of the world's largest suppliers of cocoa beans, coffee, cotton and rice, said: «We cannot continue to produce and consume food, feed and fiber in the way we do today, unless we don't mind destroying the planet.«

«The only way forward for us is the transition to a more resilient food system that allows us to meet the needs of a growing population without the resource intensity we have today.»

The report examined three food crops — potatoes, rice and wheat — and has formulated policy recommendations to be presented at COP27.

The members of the task force are working to make the short-term economic arguments for change more appealing to farmers. «It is simply not compelling enough for the average farmer«, said Reid. The report argues that industry and government must also work harder to close the knowledge gap and ensure that farmers are applying best practices. Third, all stakeholders in agriculture — from farmers to food manufacturers to government agencies, banks and insurers — must commit to transitioning to more sustainable practices.

«It is about change for all actors, including government, private and public companies and others. None of the actors can do this alone; it must be a collaboration of the willing. Action and implementation are required now«, said Reid.

Over the next six months, the group will examine how it can disseminate the work of the Task Force to create a common system for measuring environmental outcomes, introduce a credible system of payments to farmers for environmental outcomes, reduce the costs for farmers of transitioning to sustainable practices, ensure that policy rewards farmers for greening their operations, and promote the sourcing of crops from specific areas being converted to regenerative agriculture.

Scientists estimate that food production causes 35% of greenhouse gas emissions, and meat is responsible for more than twice as much pollution as plants.

Devlin Kuyek, a researcher at GRAIN, a non-profit organisation dedicated to supporting small-scale farmers, said that it is becoming increasingly difficult for large agribusiness and food companies to ignore climate change.«But I don't think any of these companies — say a McDonald's — is committing to limiting the sale of highly environmentally damaging products. I don't think PepsiCo will say the world doesn't need Pepsi.»

Kuyek pointed out that Yara, another signatory of the report, is the world's largest supplier of nitrogen-based fertilisers, «which are responsible for one in every 40 tonnes of greenhouse gases emitted annually».

«That is pretty dishonest«, said Kuyek. «Small, local food systems still feed most people on the planet, and the real threat is that the industrial system is expanding at the expense of truly sustainable systems. The corporations are pretending here, by claiming to be part of the solution when they are inevitably part of the problem.»

Given the controversial history of some of the companies involved in the report, Verghese said he expected criticism and scrutiny. «All companies must expect to be called out when it is genuine greenwashing. There is nowhere to hide«, he said. «As far as Olam is concerned, we are clear about our goals, and we have the confidence to make those goals public. We have all made progress on the path toward sustainability. It is not that we have not made mistakes in the past, but as we have gotten better at it, we are prepared to submit to scrutiny.«

Both Reid and Verghese said that the scale of the problems facing the global food supply should not be underestimated, but that more and more governments and companies were becoming convinced of the need for urgent change. «I believe we can make a difference», said Verghese. «I am optimistic. The fact that these kinds of coalitions are forming is very positive. We are all otherwise very fierce rivals and competitors. We hate each other, we do not come together unless there is a major crisis. Everyone has recognized that there is a major crisis. We need to come together.«