Pilgrim's Pride: tender-ising the meat bond market
The food sector is under mounting pressure from the financial community due to its environmental impact. It accounts for a third of anthropogenic greenhouse gases emissions and is the largest driver of deforestation worldwide.
As financial institutions increase their biodiversity focus, food companies that do not effectively manage environmental risks face the possibility of being excluded from investment portfolios. This, in turn, may lead to an increase in their cost of capital.
The recent increase in bond issuances in the sector might indicate that food companies are anticipating difficulties surrounding securing funding in the future.