Climate risks could turn profits from poultry farming into losses by 2030. This is according to the Climate risk tool of Fairr, the U.S. Farm animal investment risk and returns initiative, an investor network that aims to put industrial farming on the environmental, social and governance agenda. In fact, according to the latest Fairr data, climate change-related costs will result in a $23.7 billion decrease in profits for the 40 largest livestock companies by 2030, pushing half of these companies into net operating losses.

Specifically, the tool predicted overall net losses of 0.9 percent for Tyson Foods, the largest poultry producer in the United States, 13.1 percent for Cal-Maine the largest egg producer in the United States, and 0.3 percent for Brazil's JBS, the world's largest meat processor.

North American livestock companies, according to Fairr's data, could be the hardest hit, with an average reduction in profit margins of 11 percent: rising feed prices and projected carbon taxes will drive most of the increase in climate costs for livestock in 2030. According to Fairr, livestock companies must improve their climate mitigation and adaptation strategies to maintain profits.

"These figures highlight the urgent need for meat companies to adapt quickly or accept paying the financial price, as investors are no longer willing to bear the financial risk of investing in these companies," says Jeremy Coller, president and founder of the Fairr Initiative and chief investment officer of Coller Capital, one of the largest global investors in the secondary private equity market.

It was precisely to avoid these risks that the Fairr Initiative was born which, Coller explains, consists of "a network of collaborative investors raising awareness of the environmental, social and governance risks and opportunities arising from intensive livestock production".

"As investors begin to factor climate risk into their long-term assessments of livestock companies -Coller concludes- the appeal of meat and dairy investments may be approaching an expiration date unless companies take action to address climate risk".

Overall, the tool predicts that the 40 largest livestock companies will face an average 7% reduction in profits in 2030 from 2030 levels, totaling $ 23.7 billion: this reduction in profits means that half of the companies will operate at a loss.