Investors managing $ 3 trillion in assets are urging food multinationals Nestle, Danone, Kraft Heinz and Kellogg to set new health disclosures and goals after a successful change campaign in Unilever. increase.
Investors, including Legal & General Investment Management and BMO Global Asset Management, write to the corporate board of directors prior to the annual meeting to show shareholder concerns about nutrition and obesity.
With a push also coordinated by the non-profit ShareAction of responsible investments, a smaller group of the same investors secured a new commitment from Unilever on health last month.
Unilever said investors would set new goals by publishing the nutrition score of their food portfolio not only to their own indicators but also to external indicators after the investors submitted a resolution prior to the annual shareholders meeting.
As governments tighten regulations globally to control obesity, new impetus for major food brands to improve their health credibility is emerging.
Ignacio Vazquez, Senior Manager of ShareAction, said:
“Investors need to use standardized health indicators to determine their exposure to regulatory risk and their relative position to their competitors.”
ShareAction, which was previously obese and targeted at Tesco, a British supermarket, called for a meeting with the chairs of food makers, saying public moves represent an “escalation” of private debate.
Vazquez added: “If you look at the reports from manufacturers and supermarkets, you’ll find information about what they’re doing in climate change, plastics, biodiversity, etc., but nutrition and health aren’t treated properly.
“What has changed in the last few years is that the link between Covid and overweight puts the spotlight on unhealthy foods and governments around the world. [are] We are really tightening regulations. “
These letters contrast the company’s own assessment of its products with the findings of an independent Access to Nutrition Initiative (ATNI) using external indicators.
For example, according to Nestlé, in 2019, 80.5% of mainstream food and beverage sales came from products that meet the standards of the Nestlé Nutrition Foundation. However, ATNI accounts for 43% of sales of health products.
Last year’s Financial Times revealed that Nestlé evaluated its portfolio internally against third-party indicators and found that more than 60% of mainstream foods and drinks do not meet the “recognized definition of health.” ..
Nestlé said: “As part of a company-wide effort to update our commitment to sustainable nutrition and health, we consider the best way to benchmark ourselves against externally recognized standards. doing.”
Danone states that 90% of sales are health products, but ATNI is 65%, and Kraft Heinz’s own 76% is in contrast to ATNI’s 39%. Kellogg does not report health data, but ATNI states that only 27% of sales are health products.
Census polls on ShareAction in the United Kingdom, the United States, Germany, France, Australia and Mexico showed public support for greater action. Eighty-one percent of respondents said they support government regulations to make health foods cheaper and more widely available.
Danone said, “We are committed to providing clearer and more complete information about the ingredients and nutritional value of our products, including the use of the European Nutri-Score system.”
Kellogg said: “We need to refocus our attention on our overall approach to health, considering not only the nutrients that individual foods provide, but also how they make people feel and the impact they have on society and the planet. I think. “
