March 27, 2013
Investors Support Launch of Access to Nutrition Index
by Robert Kropp
Representing $2.6 trillion in assets under management, 39 investors call for widespread support of
the Access to Nutrition Index, which ranks the performance of food and beverage companies in the
areas of obesity and undernutrition.
After a multi-stakeholder initiative that spanned three years, the Access to Nutrition Index (ATNI) was launched this
week, training a spotlight on the practices of 25 of the world's largest food and beverage
"Obesity and undernutrition affect
billions of people and threaten a global health catastrophe," Inge Kauer, Executive Director of
ATNI, said. "The Access to Nutrition Index is an urgent call to action for food and beverage
manufacturers to integrate improved nutrition into their business strategies."
The Index, which will be updated every two years, focuses on how companies
in the sector provide consumers with nutritional choices and how their marketing practices
influence consumer behavior.
business risks to companies in the industry sector include increased regulation, reputational
factors, litigation, and market share.
The first ATNI evaluated companies on their
corporate governance and strategy relating to nutrition; the development of appropriate nutritional
products; and their influence on consumer choice and behavior.
Danone, Unilever, and
Nestlé ranked highest among companies in the food and beverage sector, "receiving the highest
scores on both the obesity and undernutrition rankings," according to ATNI. But even the three top
performers demonstrate considerable room for improvement, as the highest score was only 6.3 out of
a possible 10. And both Danone and Nestlé have been reported to be in violation of the
International Code of Marketing of Breast-milk Substitutes, which was adopted by the World Health
Assembly in 1981 to protect and promote breastfeeding.
Overall, the Index reports,
companies are not living up to their commitments. "Companies' scores on nutrition strategy and
governance were higher than their scores on product formulation, accessibility, and marketing," the
Index states. "Many companies have made commitments and some have set quantitative targets.
However, fewer demonstrate substantial progress against these targets."
of disclosure limits the ability to understand the full scope of companies' nutrition-related
The Index recommends that companies:
• Develop clear and measurable
objectives and targets to improve nutrition. This is critical to ensuring that nutrition
considerations become central to companies' core business activities such as product development,
pricing, distribution, and marketing.
• Translate commitments to improve nutrition into
action and develop mechanisms to track and monitor progress.
• Increase public disclosure
of nutrition activities. Such disclosure underpins credibility, strengthens any evaluation of their
nutrition practices, and heightens accountability.
• For companies that manufacture breast-milk
substitutes, ensure full compliance with the International Code of Marketing of Breast-milk
Substitutes in all countries.
Thirty-nine investment firms with more than $2.6 trillion in
assets under management have signed an Investor Statement committing them to support the Index by factoring the
nutritional practices of food and beverage companies into their investment decision-making.
The investors call for transparent public reporting of nutrition policies, practices, and
performance on an ongoing basis, as well as benchmarking performance against industry best
One of the signatories to the Statement is Boston Common Asset Management. At a webinar held this
week to announce the launch of the Index, Lauren Compere of Boston Common referred to New York
Mayor Bloomberg's recent efforts to ban super-sized soft drinks, and said, "Obesity is increasing
in cities like New York. It costs New York City $2 billion a year in increased health care costs
and other infrastructure costs."
PepsiCo was the highest ranking US-based company in the
Index, finishing fourth but with a score of only 4.4.
"US companies are at least seven
years behind most of the European players," Compere observed. "Compared to Europe, the regulatory
environment is somewhat lax in many areas."
"We have to reset the market dynamics around
investing in nutrition," Compere continued. "Aligning marketing dollars and nutrition is extremely
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