A new report commissioned by Friends of the Earth and conducted by Netherlands-based research group Profundo estimates that the U.S. food retail industry’s use of pesticides on just four crops will cost $219 billion between now and 2050. was found to pose potential financial, climate and biodiversity risks. The report was released alongside Friends of the Earth’s 2024 Annual Retailer Scorecard. The scorecard highlights industry leadership while showing that companies are not doing nearly enough to reduce the use of harmful pesticides. Whole Foods (NASDAQ: AMZN), Kroger (NYSE: KR), and Meijer have announced meaningful pesticide policies over the past year.
Given the vulnerability of food production to environmental damage and the potential for further deregulation under the incoming Trump administration, these climate and biodiversity risks are not just for the companies themselves, but also for the food security of the American people. It’s important. As pesticide use wipes out pollinators and destroys soil health, and as extreme droughts and floods due to climate change damage farmland, crops could become more expensive to grow and Americans people are finding it increasingly difficult to obtain basic food. Absent government action, the onus is on businesses to protect their profits and America’s food supply.
A new report estimates the risks associated with continued pesticide use through 2050 on four crops (corn, soybeans, apples, and almonds) that are incorporated into products that generate an estimated 55% of sales for U.S. food retailers. Analyzing. Apples and almonds are among the top crops sold directly to consumers. Corn and soybeans are major crops processed into processed foods and livestock feed for meat, dairy, and eggs.
By assessing potential losses in operations, financing, and reputation, as well as external damage to climate and biodiversity, Profundo estimates that the value of U.S. food retailers’ current equity, i.e., their total equity We found that almost a third (32%) of What is available to shareholders will be lost if food retailers are made fully responsible for their risks. “A big part of the risk food retailers face is losing their reputation as reliable suppliers of healthy food to consumers,” said Gerald Reich, equity analyst at Profund. “Shareholders should be aware of this risk. ” he said.
The estimated costs include $4.5 billion in climate damage from carbon dioxide equivalent emissions associated with pesticide production and use. These findings indicate the magnitude of the damage, but are likely an underestimate, given the impossibility of assessing the full extent of damage and the intrinsic value of a stable climate and biodiversity. There is a gender.
The report also found that biodiversity risks associated with pesticides that harm pollinators amount to $34 billion. Friends of the Earth’s 2024 Bee-Friendly Retailer Scorecard shows that major U.S. food retailers are increasingly recognizing the role pesticides play in biodiversity loss. Since 2018, 13 of the retailers ranked on the scorecard have established policies aimed at reducing toxic pesticides in their supply chains. However, despite this promising industry trend, much less effort is needed to address this huge debt burden.
“Under the incoming Trump administration, the Environmental Protection Agency is likely to further reduce its efforts to reduce pesticide harm, and it will likely increase “The burden on companies to deal with the risks associated with these changes will be even greater.” Earth. “Food retailers urgently need to reduce their use of pesticides and promote organic and other ecologically regenerative approaches. , we have an opportunity to help ensure Americans have access to healthy food.
The food sector is one of the most vulnerable sectors and a key contributor to the converging crises of biodiversity loss and climate change. Pesticides (a term that includes insecticides, herbicides and fungicides) used in food retailers’ supply chains contribute directly to both crises. These include pollinators, which are necessary to maintain a third of our food supply, and soil organisms, which are central to building healthy soils, sequestering carbon, conserving water, and increasing climate resilience for farmers. , causing widespread damage to biodiversity. Furthermore, pesticides are fossil fuels, and their production and use are significant contributors to agriculture-related greenhouse gas emissions.
The report identifies three strategies food retailers can take to meaningfully address the risks posed by pesticides. The goal is to support the expansion of organic agriculture in the United States and abroad, and to help source non-organic growers eliminate the use of highly dangerous pesticides that harm pollinators. By shifting to environmentally friendly farming methods that reduce the need for pesticides and make reducing pesticide inputs a central pillar of all regenerative and climate-smart farming initiatives.
