Emissions Impossible: Methane Edition

Generated Summary

This report, “Emissions Impossible: Methane Edition,” published by the Institute for Agriculture and Trade Policy (IATP) and the Changing Markets Foundation, investigates the methane emissions of major meat and dairy corporations and their impact on climate change. The study employs a methodology based on the UN Food and Agriculture Organization (FAO) Global Livestock Environmental Assessment Model (GLEAM) to calculate corporate livestock emissions, providing comparisons to country-level methane emissions. The scope encompasses ten global dairy and five global meat processing corporations. The report aims to highlight the scale of these companies’ emissions, their lack of climate action, and the urgent need for governmental regulations and emissions reductions in the livestock industry.

Key Findings & Statistics

• The combined methane emissions of the 15 companies assessed are approximately 12.8 million tonnes, which equates to over 80% of the European Union’s entire methane footprint.
• These companies’ emissions represent about 3.4% of all global anthropogenic methane emissions and 11.1% of the world’s livestock-related methane.
• The methane emissions of these 15 companies far exceed the entire methane footprint of many countries, including Russia, Canada, Australia, and Germany.
• The methane emissions of these companies are 52% higher than the EU’s livestock-related methane emissions and 47% higher than those of the US.
• JBS’s methane emissions alone surpass the combined livestock methane emissions of France, Germany, Canada, and New Zealand, or equal to 55% of US livestock methane emissions.
• The total overall GHG emissions of the 15 companies are approximately 734 million tonnes of CO2 equivalent, which is slightly higher than Germany’s emissions and makes them the tenth largest GHG-emitting jurisdiction globally if considered a country.
• Methane, calculated over a 20-year timescale, accounts for a significant portion of these companies’ GHG footprint, emphasizing the need for action.
• Nine out of the 15 companies (60%) either do not report their total emissions or do not report their total supply chain (scope 3) emissions.
• The methane emissions of JBS, the world’s largest meat processor, are the largest of any company and surpass the combined livestock emissions of France, Germany, Canada, and New Zealand.
• The 15 companies analyzed in this report reported revenues of more than €382 billion in 2021.

Other Important Findings

• The report highlights that individual companies’ methane emissions are comparable to countries’ livestock-related methane emissions.
• The majority of the companies do not report either their total GHGs or methane-specific emissions.
• The report notes that the Global Methane Pledge, while a positive step, falls short of the necessary reductions.
• The report discusses the EU’s Methane Strategy and the need for effective policies to address livestock emissions.
• The report references the Netherlands’ plan to reduce livestock numbers due to nitrogen pollution, which could lead to a reduction in methane emissions.
• The Biden administration’s methane reduction plan in the US is analyzed, with a focus on its reliance on methods like anaerobic digesters.
• The report also addresses the issue of ‘factory-farmed gas’ and its challenges.
• The promotion of biogas digestors is a band-aid solution that could incentivise the expansion of such a system.
• The report notes that in the absence of strong disclosure rules, voluntary climate targets and reporting are leading to pervasive levels of greenwashing.

Limitations Noted in the Document

• The report acknowledges limitations in the data, including the absence of publicly available data on corporate emissions.
• The reliance on self-reported data from companies introduces uncertainties in emissions estimates.
• The report’s findings are based on best-estimate benchmarks due to the lack of transparency in the livestock industry.
• Variations in operational days and capacity utilization among companies can affect the accuracy of emission calculations.
• The study acknowledges that the number of animals slaughtered by JBS (the world’s largest meat company) could range anywhere between 17-56% increase in emissions due to the lack of precise use rate data of JBS’ slaughterhouses worldwide.
• The report states that the estimates can only be achieved through full disclosure and third-party independent verification of company data, including the number of animals in their global operations.

Conclusion

The central argument of the report is that the livestock industry’s methane footprint is a significant driver of climate change, and current governmental actions are insufficient to address the issue. The report emphasizes the need for urgent action to regulate the major meat and dairy corporations. A key takeaway is the scale of the problem, with the 15 companies’ emissions rivaling those of entire countries. The authors advocate for binding GHG and methane reduction targets for the agriculture sector, alongside regulations requiring companies to report emissions comprehensively and transparently. The report underscores that governments must take a leading role in facilitating the transition, regulating environmental impacts, and supporting farmers. The report underscores the need for the companies to demonstrate how they will transition to a low methane pathway. The report suggests that in the absence of strong disclosure rules, voluntary climate targets and reporting are leading to pervasive levels of greenwashing. Ultimately, the report calls for a comprehensive set of regulations to ensure that the burden for emissions reduction rests on corporations that shape and drive the supply chain. The report emphasizes that the governments must have the political will to support farmers towards a just transition to agroecology that supports rural communities while helping mitigate and adapt to climate change.