Trending
The industrialized meat industry is not just an environmental liability—it’s also a financial risk. Investors increasingly recognize that the current model of extractive agriculture is unsustainable, harming not only the climate but also labor rights, biodiversity, and global food security. On a recent episode of VegTech™ Invest's Upside & Impact: Investing for Change podcast, CEO Elysabeth Alfano sat down with Kevin O’Neal-Smith, Impact Strategist at Adasina Social Capital, to explore how investors can actively challenge the dominance of industrial meat and push for systemic change.
The Financial Risks of Extractive Agriculture
Extractive agriculture—industrial-scale farming that prioritizes short-term yields over long-term sustainability—has deep financial and ethical implications. As O’Neal-Smith explains, the practice is a key driver of deforestation, which not only displaces vulnerable communities but also exposes investors to regulatory and reputational risks. With an estimated 90% of forest-dependent populations relying on these ecosystems for survival, large-scale deforestation threatens social stability and, consequently, economic stability.
Moreover, the industry’s reliance on toxic pesticides and fertilizers creates liabilities. Water contamination and soil degradation lead to long-term productivity losses, while increasing regulatory scrutiny could impose higher costs on companies engaged in these practices. In the U.S., extractive agriculture remains one of the most dangerous industries, disproportionately impacting marginalized communities. With 76% of agricultural workers being foreign-born and often lacking healthcare and legal protections, the industry’s exploitative labor practices pose growing risks to investors concerned with social governance factors.
O’Neal-Smith explains this further in a clip from the interview here: https://www.youtube.com/watch?v=puSL25Fq2vU
Investor-Led Change: The Role of Capital Allocation
As O’Neal-Smith highlights, one of the most effective ways investors can address extractive agriculture is through divestment and active engagement. Adasina Social Capital’s Investor Mobilization Campaign is an example of how capital can be leveraged to drive systemic change. The initiative provides an Investor Toolkit, which includes a dataset identifying companies engaged in extractive agriculture, an Investor Statement as a call to action, and thought leadership resources to educate stakeholders on the financial case for divestment.
Alfano noted that VegTech™ Invest believes that shifting capital away from harmful industries and toward sustainable alternatives is not just an ethical choice but a financially prudent one. The rapid growth of diversified protein markets presents a compelling investment opportunity. As consumer preferences shift and regulatory pressures mount, companies entrenched in industrial animal agriculture face declining profitability, while those pioneering sustainable food solutions stand to gain.
The Coalition for a More Sustainable Future
Investment alone won’t drive the transformation—collective action is needed. That’s why Adasina has also built an Investor Coalition, where values-aligned investors collaborate on strategies to accelerate the transition away from extractive agriculture. These coalitions create the critical mass necessary to shift industry norms and incentivize companies to adopt regenerative practices.
For investors seeking both impact and financial returns, the path forward is clear: divest from industries that erode long-term value and invest in solutions that are both profitable and sustainable. The meat industry is not too big to challenge—capital markets have the power to shape its trajectory.
Alfano commented that VegTech™ Invest supports this transition by investing in food innovation and sustainable food technologies, driving capital toward businesses that align with a future of economic resilience and environmental responsibility. The meat industry may be dominant today, but with smart capital allocation, investors can redefine the future of food.
Listen to the full audio podcast here. Watch the full video here.
Related: Make America Healthy Again: A Signal To Invest in Food Innovation