Reports

The State of Regenerative Agriculture in 2025: Food Products Industry

Below are the key takeaways from the ISS STOXX Research Institute’s new report on Regenerative Agriculture.

  • Society depends on the global agricultural system for its wellbeing and socioeconomic development. However, the agricultural system is currently at risk. The agriculture sector’s instability is being driven largely by natural and human capital resource strain and climate-change-induced extreme weather events.
  • Regenerative agriculture is defined as a holistic, systems-thinking approach to farming and food production that seeks to improve and maintain the health and productivity of soil, water and biodiversity ecosystems, and communities, while helping mitigate and adapt to climate change.
  • In 2024, ISS STOXX Sustainability Research developed a Regenerative Agriculture Framework that allows institutional investors to properly assess companies’ management of agricultural-related risks and opportunities in their supply chain. The Framework is based on four principles—soil health, animal welfare, water, and inclusion of farmers and ranchers—and informed corporate ratings methodology revisions for the Food Products, Beverages, Tobacco, and Textiles and Apparel industries.
  • An assessment of Food Product companies using this new methodology shows a slow adoption of regenerative agriculture practices in this industry.
  • The area in which companies are showing the most leadership and advancement is on indicators surrounding “animal welfare measures”: more than 40% of relevant Food Product companies have competent measures in place. In contrast, companies’ performance on policies to promote farmers’ socio-economic inclusion are severely lacking: only 19% of relevant Food Product companies have measures in place to support farmers and ranchers. Water-based indicators also show limited progress, with only 25% of companies demonstrating leadership or advancement in this topic.

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Authored By

Caitlin Harris, ISS STOXX Research Institute

Erin Wood, ISS STOXX Sustainability Engagement

Mirtha Kastrapeli, ISS STOXX Research Institute

 

 

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