10 ESG Investments for 2021 - Part 3

Natural food preservatives

Andrew Willis 29 April, 2021 | 4:52PM
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See last week's ESG investment for 2021 here

Andrew Willis: It’s time again for Morningstar Sustainalytics’ “10 for 2021” – which presents investors with 10 ESG investment themes that can positively contribute to advancing United Nations Sustainable Development Goals. In this series, we’ll feature a new development each week so that you can ‘create impact through thematic investing’.

This week, we’re talking about natural food preservatives – like salt, honey, or vinegar. Or the use of sophisticated controlled antimicrobials that extend the shelf life of food.

The latest technologies in microbiology and the food business have combined to form a small but growing services segment that serves in part, the natural food segment. One of the leaders in the space working to keep things fresh is Dutch food science company, (DSM), which produces a range of biopreservatives and fermentation-based compounds.

With the use of protective enzymes and cultures that are effective against yeast, mould and certain types of bacteria – natural food can now last longer. This reduces food waste, as well as packaging material waste and carbon emissions from manufacturing, to delivery.

At the moment, we see the sector valued around a billion U.S. dollars by 2028, up from 800 million U.S. a decade earlier. But by addressing ESG and reputational risks in investments related to land productivity and human health, the benefits for food producers and investors could grow as they find themselves making more sales.

For Morningstar, I’m Andrew Willis.

 

 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Koninklijke DSM NV2,330.73 MXN-5.00
Koninklijke DSM NV ADR38.23 EUR1.06

About Author

Andrew Willis

Andrew Willis  is Content Editor for Morningstar.ca. Follow him on Twitter @AndrewWillisCDN.

 

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