With Rally Funds our investment approach is systems focused. Aiming to have systemic impact, we seek investments that will transform conditions that hold a system in place – mindsets, policies, practices, resources, relationships, power dynamics – in order to improve systems. When we invest with a systems thinking approach, we first work to understand the system and why it is as it is. Exploring what the desired outcomes are for a better functioning system, we are then able to express what needs to change so a system is more beneficial to people and the planet.
Roles
IDEAS Framework
Innovate | Create and develop transformative solutions including new technologies, processes, and practices. |
Disrupt | Offer products or solutions that positively change or displace low impact incumbents and behaviours. |
Equalize | Extend the reach, relevance, and long-term viability of existing impact solutions to help maximize accessibility and positive outcomes. |
Adopt | Integrate positive impact generating technologies, methodologies, and processes into their existing products, services, and operations. |
Scale | Support the transition of innovative concepts into commercially viable solutions by increasing production capacity and distribution, developing critical infrastructure, and customizing positive impact products or solutions for use in new markets and verticals. |
RGEIF Roles 2023
RTIF Roles 2023
Percentages are based on allocation of investments, not including cash. Tables and charts in this report represent a snapshot of fund investments as of December 31, 2023; investments may change over time. The information contained herein is in summary form for convenience of presentation. Read more important information about this report here.
Levers
Changing mindsets and other big systemic conditions seems like a daunting goal of an investment portfolio! Yet really big change can come about once you understand system roles and find a powerful lever. In 2023 one ‘lever’ we were invested in was Givaudan.
Givaudan as a Lever
One of the more pressing issues facing humanity today is the inadequacy of the current global food system to meet the nutritional needs of all. Despite significant technological advancements in agriculture and supply chains, it is estimated that three quarters of the world’s population are not getting sufficient protein in their diets[1]. The demand for animal protein foods is expected to increase, driven by population growth and by the emerging middle classes in developing countries [2]. Trying to meet the global population’s protein needs with solely animal protein will fail. Economic projections reveal heightened incomes and signify increased purchasing power, coupled with rising carbon emissions in the industrial and agricultural sectors create a recipe for immense stress on global food security and the environment [3]. With global trends indicating a downward trajectory in average protein supply, along with rising populations expected to increase the demand for protein, accessible protein options that can enable the shift towards sustainable alternatives are imperative.
There has been a significant increase in demand in recent years for plant-based food globally, showing consumer interest in environmental sustainability. However, current options for meat alternatives that provide a comparable sensory experience to meat – that is, tastes, smells and feels ‘meaty’ – are limited, and therefore poses a significant barrier to producing a major shift in our food system, as it fails to fully satisfy the preferences and expectations of those who are reluctant to completely transition to a meat-alternatives diet.
RTIF invests in products and companies that have the potential to be a powerful lever in a system, meaning a product that may induce a shift towards greener and inclusive choices, becoming a catalyst for continuous positive change so that the system is more beneficial to people and the planet. Rally is invested in a potential lever that could begin to shift our food system towards a more sustainable and inclusive future. Givaudan is the global leader in the creation of flavours and fragrances, from drinks, perfumes, cosmetics and laundry care. Givaudan is committed to driving purpose-led, long-term growth while improving health for people and the planet. One of its newest innovations aims to bridge the gap between traditional meat products and plant-based substitutes to revolutionize the protein industry.
Emphasizing a substitution away from unhealthy chemicals traditionally found in many plant-based proteins to a focus on more natural ingredients, Givaudan has helped launch an innovation centre to produce a sensory experience that replicates real meat through a lab-grown cellular-cultured process. The result is meat that is identical in structure and in taste to its animal counterpart, with vastly reduced environmental impact and no mass farming or slaughter. Thus, Givaudan has the potential to become a change agent by working towards capturing a share of consumers who are still interested in eating meat, without compromising on taste or texture. Moreover, by ensuring products are cost-competitive with traditional meat products, as they are not as prone to price fluctuations compared to other food products, the company has the potential to further incentivize consumers to make the switch to alternatives, driving meaningful change in the food system. Givaudan’s innovative solutions could lead to broader adoption of protein-rich diets for all, ultimately leading to a more resilient and equitable future food system.
References:
[1] Chatterjee, S., Sarkar, A., & Boland, M. J. (2014). The World Supply of Food and the Role of Dairy Protein. Food Science and Technology, 1–18.
[2] FAO. (2006). World agriculture: towards 2030/2050. Interim report, Rome.
[31] Miassi, Y. E., & Dossa, K. F. (2023). Forecasting animal protein supply in Asia and Europe in light of climate change, population growth and land pressure. Tropical Plants, 2(1), 1–15.