Cellular Agriculture Australia pushes for stronger ESG focus in emerging cell ag sector

A new report from Cellular Agriculture Australia is calling for cellular agriculture companies to embed environmental, social, and governance (ESG) considerations into their core business strategies from the outset. The report emphasizes that while cellular agriculture has the potential to address climate change, ethical concerns, and food security issues, achieving this impact will require more than just technological innovation – it demands careful framing of impact metrics and claims.

The report highlights that impact claims in the cellular agriculture sector, much like in other analogous industries such as plant-based proteins, sustainable fashion, and electric vehicles (EVs), are complex and must strike a balance between robust data and stakeholder expectations. Cellular agriculture companies face significant pressure to communicate their value proposition to policymakers, investors, and consumers. However, with the industry still in its early stages, many processes remain untested at scale, and the availability of reliable data is limited.

Given these challenges, the report warns against making unverified or overly ambitious claims that could backfire by eroding trust among stakeholders. Instead, the industry is encouraged to proceed cautiously, ensuring that all claims are supported by evidence, while also recognizing the importance of not downplaying the sector’s potential impact.

The report draws on lessons from other industries, notably the plant-based sector, where consumer adoption has been driven primarily by factors like price, taste, and nutrition, with environmental and ethical claims playing a secondary role. This is a key takeaway for cellular agriculture companies, which must ensure that their products meet the primary needs of consumers, while clearly communicating their broader impact on sustainability.

From the EV industry, the report highlights the importance of advocating for favorable labeling standards and policy incentives, which could help cellular agriculture products achieve price parity with traditional meat products. Furthermore, EVs’ slow market adoption and corresponding lag in impact serve as a reminder that the expectations of key stakeholders must be carefully managed to demonstrate the long-term potential of cellular agriculture technologies.

The regulatory landscape is evolving, particularly in Australia, where the incoming shift to mandatory climate reporting and increasing scrutiny on greenwashing are reshaping the operating environment for both cellular agriculture and conventional food industries. The report cautions against making vague or misleading ESG claims, which can result in backlash or even penalties, as seen in several case studies of companies that have faced such issues.

To avoid these pitfalls, the report advises cellular agriculture companies to align their ESG metrics with those used in conventional agriculture sectors, particularly red meat and dairy, which have already established standardized approaches. This alignment would enable more credible comparisons and enhance the trustworthiness of cellular agriculture’s impact claims.

A key objective of the report is to initiate a collective discussion among industry leaders about the framing, measurement, and communication of ESG and impact claims. Cellular Agriculture Australia believes that early collaboration within the industry will not only be efficient but will also ensure consistency, which is critical for building consumer trust and driving the adoption of cellular agriculture products.

Although the industry is still developing and facing constraints such as limited data and resources, the report emphasizes the importance of acting now. Delaying action on ESG measurement and reporting could put the industry at risk of falling behind in a rapidly changing regulatory environment.

The report includes case studies of two leading cellular agriculture companies, Aleph Farms and Mosa Meat, to illustrate different approaches to impact reporting. Aleph Farms has made bold public commitments, such as achieving net-zero carbon by 2025, and released its first impact report in 2022. In contrast, Mosa Meat has taken a more cautious approach, choosing to announce milestones only after they have been achieved rather than making ambitious long-term claims.

Cellular Agriculture Australia’s report provides a foundational framework for the industry to prioritize impact in its strategic decisions. By learning from other industries, aligning with existing agricultural metrics, and fostering collaboration, the cellular agriculture sector can build a solid foundation for its long-term success. With regulatory pressures mounting and the potential for greenwashing penalties increasing, the report encourages cellular agriculture companies to act now, ensuring that their impact claims are transparent, substantiated, and aligned with the industry’s collective goals.