Which Foods Have the Greatest Environmental Impact?
The quantity of greenhouse gases (GHGs) generated by our food can vary considerably across the global food supply chain.
In fact, the difference between specific food types can vary by orders of magnitude, meaning what we eat could be a significant factor impacting GHG emissions on the environment.
Today’s modified chart from Our World in Data relies on data from the largest meta-analysis of food systems in history. The study, published in Science was led by Joseph Poore and Thomas Nemecek to highlight the carbon footprint across different food types across the world.
The Foods With the Highest Carbon Footprint
Worldwide, there are approximately 13.7 billion metric tons of carbon dioxide equivalents (CO2e) emitted through the food supply chain per year.
Across a database extending through 119 countries and 38,000 commercial farms, the study found that, unsurprisingly, beef and other animal products have an outsize effect on emissions.
For example, one kilogram (kg) of beef results in 60 kg of GHG emissions—nearly 2.5x the closest food type, lamb and mutton. In contrast, the same weight of apples produce less than one kilogram of GHG emissions.
|Food Type||GHG Emissions per 1 kg Produced|
|Beef (beef herd)||60 kgCO2e|
|Lamb & Mutton||24 kgCO2e|
|Beef (dairy herd)||21 kgCO2e|
|Prawns (farmed)||12 kgCO2e|
|Palm Oil||8 kgCO2e|
|Pig Meat||7 kgCO2e|
|Poultry Meat||6 kgCO2e|
|Olive Oil||6 kgCO2e|
|Fish (farmed)||5 kgCO2e|
|Fish (wild catch)||3 kgCO2e|
|Cane Sugar||3 kgCO2e|
|Wheat & Rye||1.4 kgCO2e|
|Maize (Corn)||1.0 kgCO2e|
|Root Vegetables||0.4 kgCO2e|
|Citrus Fruits||0.3 kgCO2e|
When it comes to plant-based foods, chocolate is among the highest GHG emitters. One kilogram of chocolate produces 19 kg of GHGs. On average, emissions from plant-based foods are 10 to 50 times lower than animal-based types.
Bottom line, it is clear that the spectrum of emissions differs significantly across each food type.
Food Supply Chain Stages
The food supply chain is complex and nuanced as it moves across each stage of the cycle.
Although the steps behind the supply chain for individual foods can vary considerably, each typically has seven stages:
- Land Use Change
- Animal Feed
Across all foods, the land use and farm stages of the supply chain account for 80% of GHG emissions. In beef production, for example, there are three key contributing factors to the carbon footprint at these stages: animal feed, land conversion, and methane production from cows. In the U.S., beef production accounts for 40% of total livestock-related land use domestically.
On the other end of the spectrum is transportation. This stage of the supply chain makes up 10% of total GHG emissions on average. When it comes to beef, the proportion of GHGs that transportation emits is even smaller, at just 0.5% of total emissions.
Contrary to popular belief, sourcing food locally may not help GHG emissions in a very significant way, especially in the case of foods with a large carbon footprint.
The Rise of Plant-Based Alternatives
Amid a growing market share of plant-based alternatives in markets around the world, the future of the food supply chain could undergo a significant transition.
For investors, this shift is already evident. Beyond Meat, a leading provider of meat substitutes, was one of the best performing stocks of 2019—gaining 202% after its IPO in May 2019.
As rising awareness about the environment becomes more prevalent, is it possible that growing meat consumption could be a thing of the past?
Visualizing the Power Consumption of Bitcoin Mining
Bitcoin mining requires significant amounts of energy, but what does this consumption look like when compared to countries and companies?
Visualizing the Power Consumption of Bitcoin Mining
Cryptocurrencies have been some of the most talked-about assets in recent months, with bitcoin and ether prices reaching record highs. These gains were driven by a flurry of announcements, including increased adoption by businesses and institutions.
Lesser known, however, is just how much electricity is required to power the Bitcoin network. To put this into perspective, we’ve used data from the University of Cambridge’s Bitcoin Electricity Consumption Index (CBECI) to compare Bitcoin’s power consumption with a variety of countries and companies.
Why Does Bitcoin Mining Require So Much Power?
When people mine bitcoins, what they’re really doing is updating the ledger of Bitcoin transactions, also known as the blockchain. This requires them to solve numerical puzzles which have a 64-digit hexadecimal solution known as a hash.
Miners may be rewarded with bitcoins, but only if they arrive at the solution before others. It is for this reason that Bitcoin mining facilities—warehouses filled with computers—have been popping up around the world.
These facilities enable miners to scale up their hashrate, also known as the number of hashes produced each second. A higher hashrate requires greater amounts of electricity, and in some cases can even overload local infrastructure.
Putting Bitcoin’s Power Consumption Into Perspective
On March 18, 2021, the annual power consumption of the Bitcoin network was estimated to be 129 terawatt-hours (TWh). Here’s how this number compares to a selection of countries, companies, and more.
|Name||Population||Annual Electricity Consumption (TWh)|
|All of the world’s data centers||-||205|
|State of New York||19.3M||161|
|Walt Disney World Resort (Florida)||-||1|
Note: A terawatt hour (TWh) is a measure of electricity that represents 1 trillion watts sustained for one hour.
Source: Cambridge Centre for Alternative Finance, Science Mag, New York ISO, Forbes, Facebook, Reedy Creek Improvement District, Worldometer
If Bitcoin were a country, it would rank 29th out of a theoretical 196, narrowly exceeding Norway’s consumption of 124 TWh. When compared to larger countries like the U.S. (3,989 TWh) and China (6,543 TWh), the cryptocurrency’s energy consumption is relatively light.
For further comparison, the Bitcoin network consumes 1,708% more electricity than Google, but 39% less than all of the world’s data centers—together, these represent over 2 trillion gigabytes of storage.
Where Does This Energy Come From?
In a 2020 report by the University of Cambridge, researchers found that 76% of cryptominers rely on some degree of renewable energy to power their operations. There’s still room for improvement, though, as renewables account for just 39% of cryptomining’s total energy consumption.
Here’s the share of cryptominers that use each energy type vary across four global regions.
|Energy Source||Asia-Pacific||Europe||Latin America|
and the Caribbean
Source: University of Cambridge
Editor’s note: Numbers in each column are not meant to add to 100%
Hydroelectric energy is the most common source globally, and it gets used by at least 60% of cryptominers across all four regions. Other types of clean energy such as wind and solar appear to be less popular.
Coal energy plays a significant role in the Asia-Pacific region, and was the only source to match hydroelectricity in terms of usage. This can be largely attributed to China, which is currently the world’s largest consumer of coal.
Researchers from the University of Cambridge noted that they weren’t surprised by these findings, as the Chinese government’s strategy to ensure energy self-sufficiency has led to an oversupply of both hydroelectric and coal power plants.
Towards a Greener Crypto Future
As cryptocurrencies move further into the mainstream, it’s likely that governments and other regulators will turn their attention to the industry’s carbon footprint. This isn’t necessarily a bad thing, however.
Mike Colyer, CEO of Foundry, a blockchain financing provider, believes that cryptomining can support the global transition to renewable energy. More specifically, he believes that clustering cryptomining facilities near renewable energy projects can mitigate a common issue: an oversupply of electricity.
“It allows for a faster payback on solar projects or wind projects… because they would [otherwise] produce too much energy for the grid in that area”
– Mike Colyer, CEO, Foundry
This type of thinking appears to be taking hold in China as well. In April 2020, Ya’an, a city located in China’s Sichuan province, issued a public guidance encouraging blockchain firms to take advantage of its excess hydroelectricity.
UN Sustainable Development Goals: How Companies Stack Up
Are companies making progress in meeting the UN Sustainable Development Goals? This tracker shows how companies are measuring up.
The UN SDGs: How Companies Stack Up
Environmental, social, and governance (ESG) investing witnessed a breakthrough year in 2020 with the most fund inflows on record.
Importantly, for companies that are judged according to ESG metrics, one way to track their progress is through their alignment to the UN Sustainable Development Goals (SDGs).
Established in 2012, the UN SDGs are a blueprint for creating a more sustainable future by 2030 that have been adopted by 193 countries worldwide.
As investors and stakeholders pay closer attention to sustainability concerns, this graphic from MSCI breaks down how companies stack up according to their alignment to the UN SDGs.
How Were Companies Measured?
To track companies net contribution to the UN SDGs, companies were scored by their positive or negative contribution to each of the 17 goals.
The 17 UN SDGs are designed to achieve three primary objectives by 2030:
- Protect the planet
- End poverty
- Create prosperity and peace for all
Specifically, the framework centers on a discussion paper that was developed in partnership with the OECD in 2018. Company policies, operations, products and services, and practices are analyzed according to reported and publicly available information.
Tracking the Alignment of Companies
Across a universe of 8,550 companies in the MSCI All Country World Index, constituents were measured from strongly aligned to strongly misaligned to the UN SDGs.
|3||Good Health and Well-being||0||315||141||29|
|6||Clean Water and Sanitation||17||325||36||10|
|7||Affordable and Clean Energy||43||639||109||587|
|8||Decent Work and Economic Growth||25||1269||52||17|
|9||Industry, Innovation, and Infrastructure||68||844||137||9|
|11||Sustainable Cities and Communities||0||0||167||19|
|12||Responsible Consumption and Production||115||855||150||598|
|14||Life Below Water||0||36||151||92|
|15||Life on Land||0||0||128||17|
|16||Peace and Justice Strong Institutions||0||135||241||27|
|17||Partnerships to Achieve the Goal||0||401||152||22|
Source: MSCI ESG Research LLC as of August 11, 2020
Broadly speaking, companies fell mostly in the middle—roughly 38% were aligned while almost 55% were misaligned or neutral. Meanwhile, just 0.2% of companies were strongly aligned to the UN SDGs.
Overall, one of the most strongly aligned goals was Responsible Production and Consumption, with 115 companies meeting this criteria. Specifically, these include companies that are building sustainable infrastructure, energy efficiency, or creating green jobs.
Interestingly, the worst performing goal was also Responsible Production and Consumption, with over five times as many companies (598) strongly misaligned. Along with this goal, both Climate Action and Affordable and Clean Energy each had over 500 companies strongly misaligned.
UN SDGs: A Sector Focus
Unsurprisingly, SDG-alignment varied widely according to company sectors.
Educational companies, for instance, represented the highest level of alignment to Gender Equality. Meanwhile, 18% of 425 utilities companies assessed ended up aligning with Clean and Affordable Energy goals.
As one would expect, the energy sector lagged behind. In 2020, fossil fuels were a key source of revenue for 91% of the companies in the energy business. In fact, just three companies derived over 50% of their revenues from green alternatives: REX American Resources, Renewable Energy Group, and Verbio.
A Call to Action?
Despite the growing wave of interest in ESG investing, the reality is that progress to meet the UN SDGs has been slower going than expected.
However, a greater number of individuals, stakeholders, and activists are sounding the alarm. Today, over 3,000 signatories representing trillions in assets under management have committed to the UN Principles of Responsible Investment, which has established six key actions for ESG investing. Now, many companies are required to report their ESG disclosures in Europe.
Along with these key markers of progress, investors can move the dial by tracking a company’s alignment to sustainable development goals.
Money1 month ago
The Richest People in the World in 2021
Green2 months ago
Mapped: The Greenest Countries in the World
Markets2 months ago
World Beer Index 2021: What’s the Beer Price in Your Country?
Markets2 months ago
The Population of China in Perspective
Money2 months ago
Ranked: The World’s Black Billionaires in 2021
Sponsored2 months ago
The Carbon Footprint of Trucking: Driving Toward A Cleaner Future
Misc2 months ago
Slices of the Pie: Mapping Territorial Claims in Antarctica
Misc5 days ago
Visualized: Comparing the Titanic to a Modern Cruise Ship