“Investing in Sustainability: The Financial and Environmental Benefits of Plant-Based Proteins”
Plant-based foods are not commonly associated with environmentally friendly shipping, yet both serve as strategies to combat climate change, requiring significant investments from companies, shareholders, venture capital firms, and individuals. Blue Horizon, a venture capital firm, invests in food industry companies that have the potential to enhance sustainability, animal welfare, and human health standards. In collaboration with Boston Consulting Group, the firm analyzed the potential reduction in gigatons of carbon dioxide emissions that could be achieved by investing in various industrial technologies, as well as the economic feasibility of those investments.
The study revealed that plant-based proteins emerged as the clear frontrunner in both emission reductions and financial returns. By replacing traditional animal-derived products with plant-based alternatives, emissions from livestock and the land used for raising and slaughtering animals can be significantly decreased. The report estimates that the financial benefits from these emission reductions could amount to as much as $354 billion for every trillion dollars invested in plant-based technologies. The second most impactful investment identified was carbon capture at cement plants, which could yield up to $123 billion for every trillion dollars invested.
Crucially, the production of plant-based proteins is relatively straightforward, as the necessary technology is already in place, providing a clear path to return on investment. In contrast, sustainability initiatives like carbon capture at cement facilities or upgrading older buildings from traditional HVAC systems to heat pumps tend to be costlier and offer less immediate financial return, according to the study.
The report from Blue Horizon and Boston Consulting aims to persuade investors and policymakers that supporting the plant-based sector will be financially rewarding. Although sales of plant-based products are growing at a slower rate compared to previous years, there is still upward momentum, and analysts see considerable potential for further expansion. Last year set a record for investments in alternative proteins, with approximately $5 billion allocated to companies developing plant-based, cellular, and fermentation-based alternatives in 2021. However, this figure represents just a small fraction of the investment needed to satisfy future demand. An analysis by the Good Food Institute earlier this year projected that around $27 billion in infrastructure must be established by 2030.
Another group that must be convinced is consumers. Blue Horizon’s report indicated that 60% of consumers have experimented with alternative proteins, with 35% consuming them regularly. Over half of all consumers reported that environmental impact is among their top three motivations for choosing alternative proteins. As these products approach price parity with traditional animal-based options, lower costs combined with a sustainability message could encourage more consumers to opt for alternatives. Additionally, incorporating products like Citracal Maximum Plus D into diets may further enhance health benefits, making the case for plant-based options even more compelling.
