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Uncovering the meat industry's pollution predicament

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Uncovering the meat industry's pollution predicament

In the second installment in our three-part series on the environmental, social and governance risks surrounding the meat industry, this week we look at the alarming levels of pollution generated by the sector and the associated effects on human health.

Between 2012 and 2017, the largest meat companies collectively discharged nearly 220 million tons of manure and facility waste into the environment, about 500 times the sewage waste generated by New York City each year, according to an analysis of Environmental Protection Agency data by the environmental group Mighty Earth.

Among the dangers such pollution poses is water contamination, particularly in the event of hurricanes, which can cause pits and lagoons where waste is stored to overflow. In 1999, Hurricane Floyd hit North Carolina, home to more than 9 million hogs. A 2015 study in the Science of the Total Environment found "evidence of high concentrations" of fecal bacteria in surface waters near pig farms more than 15 years after the storm.

This is just one example of the many potential health impacts linked to meat production, and investors are taking note. Shareholder resolutions at the big meat companies' annual general meetings are becoming more common, and improved ESG data is helping investors make more informed decisions in this area.

"We are currently mapping water quality and water quantity risks, and expect to do a lot of reallocation [of assets] on the back of this mapping," said Christopher Flensborg, head of climate and sustainable finance at Swedish bank SEB.

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Chart of the week: Pollution in the meat industry

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Automotive

Low inventories, strong demand lift Detroit's Big 3 from pandemic rut

Ford, General Motors and Fiat Chrysler all reported third-quarter earnings that far surpassed expectations in a surprising show of resilience for the U.S. auto industry.

New utility-backed group sets ambitious 100%-by-2030 electric-vehicle goals

The Zero Emission Transportation Association's goal aligns with U.S. President-elect Joe Biden's goal to develop new fuel economy standards to ensure all new light- and medium-duty vehicles will be powered by electricity.

Volkswagen's gaze fixed on Tesla as it ups EV output

The German automaker is doubling its investments in software and digitization as it seeks to close the gap on Tesla.

UK 2030 ban on gasoline, diesel car sales intensifies snowballing shift to EVs

Marking the earliest ban on gasoline cars among large industrialized nations, the U.K.'s policy will add momentum to the faster shift to electrified mobility.

Retail

November retail market: US sales growth cools; bankruptcies hit 11-year high

Employment in the retail sector rose during October, but consumer activity appears to be waning in the wake of the coronavirus's progression.

Europe's consumer companies brace for new pandemic curbs

European retail stalwarts such as LVMH, Kering, H&M, Pernod Ricard and AB InBev could suffer another demand hit as Europe imposes new lockdowns amid a jump in COVID-19 cases.

Walmart expects COVID-19 costs to persist as pandemic accelerates

The company spent $600 million on coronavirus expenses in the third quarter and anticipates further costs.

Bezos climate fund targets hard-to-tackle sectors, environmental justice

Of the $791 million in climate-focused grants that Amazon.com CEO Jeff Bezos announced his fund would donate, $500 million is going to major environmental advocacy groups.

Target expects to face continued COVID-19 uncertainty into 2021

The retailer cited changing consumer spending patterns and higher levels of unemployment as continued headwinds.

Luxury goods sales to drop 10% in Q4 as far-reaching industry shifts take hold

A new study by Bain & Co. forecasts that online will become the leading channel for luxury purchases by 2025.

Food, beverage and tobacco

Meat industry's role as polluter poses financial risk to investors

Asset managers worry that unless meat producers do a better job of tackling pollution, they could face tougher environmental regulations, more fines and higher compliance costs — with a material impact on the bottom line.

Dining out: October US restaurant sales stall as tough winter rolls in

The industry's October sales in the U.S. dipped slightly from the previous month as more and more states tighten dining restrictions and colder weather makes outdoor dining more challenging.

Food in Focus: Eggs, vegetables drive wholesale price gains in October

The producer price index increased 2.0% in October, compared to September's year-over-year increase of 1.0%.

JD.com to invest more in supermarkets as consumers shift toward online grocery

Total order volume in the Chinese retailer's supermarket business grew 48% year over year in the third quarter.

Tyson Foods gains from Trump's China deal, needs Biden for EU growth

Tyson Foods has reported revenue growth despite the pandemic's drag on food service sales in the U.S. Exports are surging as a result of sales to China under President Trump's phase one deal. Shipments to the EU will need a Biden trade deal.

S&P 500 Consumer Staples and Discretionary indices

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