Financing Less Meat and More Plants
Total Page:16
File Type:pdf, Size:1020Kb
Financing less meat and more plants A case study on the crucial role Dutch banks can play in the protein transition 21 may 2021 About the Eerlijke Bankwijzer - Fair Bank Guide Netherlands This report has been commissioned by the Eerlijke Bankwijzer (Fair Bank Guide Netherlands). The Eerlijke Bankwijzer is a coalition of five organisations: Amnesty International, Milieudefensie, Oxfam Novib, PAX and World Animal Protection. The aim of the Eerlijke Bankwijzer is to encourage corporate social responsibility by banks. Not all coalition members of the Eerlijke Bankwijzer work on all themes and/or sectors on which the research of the Eerlijke Bankwijzer focuses. Reports on specific themes therefore do not necessarily reflect the opinion of all coalition members of the Eerlijke Bankwijzer. The Eerlijke Bankwijzer is part of Fair Finance International (FFI), an international civil society network working in ten countries with over 70 CSOs, that seeks to strengthen the commitment of banks and other financial institutions to social, environmental and human rights standards. About this report This report investigates the role that banks can play in the transition towards a food system less dependent on animal protein and more based on plant-based and alternative sources of protein. It draws on the recent literature and expert interviews to identify key possibilities and barriers, as well as the steps that banks could take to advance the protein transition. Authorship This report was researched and written by Stefanie Geurts, Lennart van Loenen and Jan Willem van Gelder. Correct citation of this document: Geurts, S., L. van Loenen, and J.W. van Gelder (2021, May), Financing less meat and more plants - A case study on the crucial role Dutch banks can play in the protein transition, Amsterdam, The Netherlands: Profundo. Front page cover photograph by Amer Kipp on Unsplash. About Profundo With profound research and advice, Profundo aims to make a practical contribution to a sustainable world and social justice. Quality comes first, aiming at the needs of our clients. Thematically we focus on commodity chains, the financial sector and corporate social responsibility. More information on Profundo can be found at www.profundo.nl. Acknowledgements The authors would like to thank all the expert interviewees for their time and cooperation in this study. Disclaimer Profundo observes the greatest possible care in collecting information and drafting publications but cannot guarantee that this report is complete. Profundo assumes no responsibility for errors in the sources used, nor for changes after the date of publication. The report is provided for informational purposes and is not to be read as providing endorsements, representations or warranties of any kind whatsoever. Profundo will not accept any liability for damage arising from the use of this publication. Contents Summary ................................................................................................................................... 1 Samenvatting ............................................................................................................................. 3 Introduction ............................................................................................................................... 5 Why a protein transition is necessary .................................................................... 6 1.1 Biodiversity........................................................................................................................ 6 1.2 Climate change ................................................................................................................. 8 1.3 Food security .................................................................................................................... 8 1.4 Public health ..................................................................................................................... 9 1.5 Human and labour rights ............................................................................................... 10 1.6 Animal welfare ................................................................................................................ 10 1.7 The need for a protein transition ................................................................................... 11 Towards a protein transition ............................................................................... 13 2.1 Alternatives for animal protein ...................................................................................... 13 2.1.1 Plant-based protein sources .......................................................................................... 13 2.1.2 Fermented protein sources............................................................................................ 15 2.1.3 Cell-based protein sources ............................................................................................ 16 2.1.4 Development of the market for alternative proteins .................................................... 16 2.2 The protein transition in the food sector ...................................................................... 17 2.2.1 Start-ups .......................................................................................................................... 17 2.2.2 Large food companies ................................................................................................... 18 2.2.3 Retailers and food service ............................................................................................. 19 2.2.4 Primary producers .......................................................................................................... 21 Existing bank commitments on the protein transition .......................................... 23 3.1 ABN Amro ....................................................................................................................... 23 3.2 Bunq ................................................................................................................................ 23 3.3 De Volksbank .................................................................................................................. 24 3.4 ING Bank ......................................................................................................................... 24 3.5 NIBC ................................................................................................................................. 24 3.6 Rabobank ........................................................................................................................ 24 3.7 Triodos Bank ................................................................................................................... 25 3.8 Van Lanschot Kempen ................................................................................................... 25 3.9 Findings ........................................................................................................................... 25 How banks can accelerate the protein transition ................................................. 27 4.1 Financing and investment .............................................................................................. 27 4.1.1 Lending and investment policies................................................................................... 27 4.1.2 Exclusion ......................................................................................................................... 28 4.1.3 Engagement with clients ................................................................................................ 29 4.1.4 Supporting primary producers in transitioning to sustainable agriculture ................ 29 4.1.5 Supporting new companies and start-ups .................................................................... 31 4.1.6 Financial products .......................................................................................................... 33 4.2 Research ......................................................................................................................... 34 4.3 Facilitation and involving stakeholders ........................................................................ 35 4.3.1 Supply chain engagement ............................................................................................. 35 4.3.2 Stakeholder dialogue ..................................................................................................... 36 What governments can do to involve banks in the protein transition .................... 37 5.1 Existing commitments ................................................................................................... 37 5.1.1 National commitments .................................................................................................. 37 5.1.2 EU-level commitments ................................................................................................... 38 5.2 Government steps with regard to banks and the protein transition ........................... 39 5.2.1 A long-term strategy on the protein transition ............................................................. 39 5.2.2 Financial instruments ..................................................................................................... 40 5.2.3 Financial regulation ........................................................................................................ 41 5.2.4 Price measures ..............................................................................................................