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Daily Maverick
06-07-2025
- Business
- Daily Maverick
Nestlé to ‘evolve' nutrition and reporting after investor criticism of healthy food targets
The Global Access to Nutrition Index 2024 by ATNi found that of product sales, only 32.7% are from healthier Nestlé products. Nestlé CEO Laurent Freixe posted on LinkedIn that after another meeting at the end of 2024 with ShareAction investors they agreed to 'evolve Nestlé's reporting on nutritional value of the company's portfolio' as well as 'make it easier for investors to compare companies and their portfolios across the food industry'. This came after March 2024, when ShareAction, the responsible investing charity, filed a resolution asking Nestlé to set targets to increase the sales of healthier foods, and apply internationally accepted standards that define healthy foods. This means that Nestlé's portfolio may be moving towards more transparency, as well as hopefully pushing the marketing and sales of healthier foods. ANTi analysed the Nestlé product portfolio at the end of 2024, finding that only 32.7% of the sales are from healthier Nestlé foods and beverages. 'I think that there is still a very long way to go – although I guess a little credit must be given for the slight shift towards healthy food,' said Sue Goldstein, public health medicine specialist and division director at the SAMRC Centre for Health Economics and Decision Science at PRICELESS SA. Nestlé had an overall score of 3.7 out of 10, scoring lowest on affordable nutrition (3/10) and portfolio improvement (3.5/10) and highest on Reporting Nutrient Profile Models (9/10) which are a system for classifying foods based on nutritional content, often used to assess healthiness – such as fats, sugars and salt. People often say that food choices are down to the individual. But what is available, accessible, affordable, desirable, convenient and effective with marketing all play a role in determining people's choices. 'Evolve' nutrition reporting 'We appreciate the constructive dialogue with ATNi and ShareAction and their recognition of our progress and transparency. We have the same interest – making balanced diets accessible for all people around the world. We are one of the food companies at the forefront of the work on this and it requires the whole industry to engage to make a difference,' Conny Sethaelo, corporate communications and public affairs director at Nestlé East and Southern Africa Region, told Daily Maverick. Freixe added that with Nestlé's next non-financial report they will 'evolve' nutrition reporting via three mechanisms: add new data aligned with the scope of ATNi, include a sales weighted average measure for relevant categories and the total portfolio, and continue to use the Health Star Rating system. Further steps ATNI lauded the progress Nestlé has made, but said 'further steps are needed to fully align with ATNi's expectations for responsible nutrition reporting.' These include: Setting a clear and ambitious target to increase the share of healthier products sold, and reducing sales of less-healthy products; Greater transparency on reduction of nutrients of concern (sugar, sodium, saturated fat); Public reporting of marketing audit results and responsible marketing practices; Progress updates on front-of-pack labelling and use of nutrition or health claims; and Full adherence to the WHO Code on the marketing of breast milk substitutes. 'We comply with the World Health Organization International Code for the Marketing of Breastmilk Substitutes and World Health Assembly resolutions as implemented by national governments everywhere in the world,' Sethaelo said. She added that they have restricted the promotion of formula for infants aged 0 to six months worldwide. In more than 160 countries, including South Africa, they apply stricter rules to prevent promoting formula for infants of 0 to 12 months. Social media sites available in South Africa, such as Facebook, do have Nestlé pages such as ' Nestlé Nankid 4 ' where age is not mentioned, on posts saying things like 'Every growing kid with a growing mind deserves a good foundation. With NESTLÉ® NANKID® OPTIPRO® 4 daily, your kid gets the support they need for their growing body and growing mind.' The Facebook page description is 'baby goods/children's goods'. Nutrition governance: 7.8/10 Nestlé has committed to the target 'to grow the sales of more nutritious products by CHF 20 to 25 billion by 2030, representing about 50% growth over 2022 sales'. 'Nutritious products' refers to products that meet Health Star Rating (HSR) 3.5 (or above) and its specialised nutrition products (such as baby foods, supplements and medical nutrition). Nestlé is strongly recommended to increase the sales target of healthier foods relative to less-healthy products, to ensure that sales of less-healthy products do not grow at the same rate. Portfolio improvement: 3.5/10 Nestlé has committed to reducing sodium in frequently consumed products by 2025, with targets for further reductions set for 2030. The company reports that it has achieved '5-6% sugar and salt reduction over the last six years' and met 2025 sodium reduction objectives in half of its product categories. Asked how they will address nutrient differences in the Global South, since products for infants and toddlers have more sugar in countries like South Africa, Sethaelo said the approach is 'global, meaning we are committed to providing more nutritious, affordable food and beverages to people in all countries in which we operate, including LMICs'. 'At Nestlé, we're committed to making a positive impact by creating products that tackle locally relevant nutritional deficiencies and are regularly consumed by a large portion of the population. Our goal is to offer foods that support a balanced diet and are affordable for those who need them most – helping meet critical societal needs while creating lasting value for our business.' Saturated fats and sticking to a date As with sugar reduction, the company said it will focus on growing sales of products meeting HSR≥ 3.5. While saturated fat is a major component of the HSR algorithm, there is no reformulation target for saturated fat reduction. Industrially produced trans fat (iTFA) is an industrial process of adding hydrogen to vegetable oil, going from a liquid to a solid. It can be found in baked goods, some packaged foods and margarine, for example. Among other dietary factors, high intake of trans fat increases the risk of death from any cause by 34%, coronary heart disease deaths by 28% and coronary heart disease by 21%. Nestlé indicates that the company has successfully limited iTFA to less than 2g per 100g of fats and oils, aligning with WHO recommendations. Additionally, the company has shown evidence of internal standards in place to prevent the presence of iTFA. Nestlé is encouraged to report specifically on its progress in reducing levels of sodium (ideally in line with the WHO sodium benchmarks), saturated fats, and sugar, across all relevant product categories – and set a specific, measurable and time-bound target for reducing levels of saturated fats and free sugars. Reformulating, reducing and investing in marketing Sethaelo explained that they believe an 'absolute target' is the best way to guide the strategy of increasing sales of more nutritious foods and beverages. 'We are proud of all of our products and want to ensure that we address responsibly the diverse needs and preferences of our consumers,' said Sethaelo, adding that they are 'taking action across three key areas.' 'These are reformulating existing products and developing new ones with improved nutrient profiles,' Sethaelo said. They have 'reduced health-sensitive nutrients but believe that a holistic approach to improving nutritional value based on nutrient profiling systems (including HSR) is the best approach.' And they are investing significant marketing spend behind products scoring HSR 3.5 and above, she explained. Fruits, vegetables, nuts and whole grains Nestlé, through its joint venture with General Mills as Cereal Partners Worldwide (CPW), commits to having whole grains as the main ingredient in its cereals. Nestlé provided evidence of tracking the percentage of products with whole grain as the number-one ingredient over the past three years. Nestlé is encouraged to set targets to increase levels or sales of products containing meaningful levels of minimally processed fruits, vegetables, nuts and legumes (FVNL) and whole grains across all relevant product categories and report against them. For its CPW target, the company is recommended to publish how it defines 'whole grains' in this context, ideally using the Whole Grain Initiative definition. 'We do support the Whole Grain Initiative definition – and advocate for harmonisation of whole grain food definitions globally, using this one as standard,' Sethaelo said. This is particularly important to sub-Saharan Africa, as Nestlé has announced a $7-million (R124-million) investment to expand its cereal manufacturing facility in Harare, Zimbabwe. How else does Nestlé score? In the Nutrient Profiling Model Nestlé scored 2.6 out of 10. Nestlé reports on the healthiness of its product sales using Health Star Rating, which was originally only applied to its children and family category products in 2020, and now applies to the entire global portfolio – an improvement. However, while the company shared details with ATNi about how it categorises products according to HSR guidelines, it did so under a non-disclosure agreement (NDA). To enhance transparency, Nestlé is strongly encouraged to publish the healthiness of its product sales according to HSR, excluding the plain coffee portfolio, or make it available on request, without an NDA. In terms of affordable nutrition, it scored three out of 10. For workforce nutrition, it scored seven out of 10. In terms of responsible labelling, it scored 7.5 out of 10. With responsible marketing, it scored 4.1 out of 10. Nestlé recently launched a platform called GoodNes, collaborating with South African influencers to cook 'healthier food'. For example, it featured cooking with instant noodles, which while usually low in calories, are high in sodium, fat and carbohydrates. The amount of salt in one packet of noodles far exceeds the daily recommended intake. 'The way that healthy food is promoted on the GoodNes platform includes processed meats (which are carcinogenic) and foods high in salt like: 'Maggi Lazenby stir-fry, featuring a blend of beloved brands like Maggi 2-Minute Noodles and Worcestershire Sauce.' In some ways, this is even more dangerous as they are claiming that these are healthy foods and innocent people who are trying their best for their families fall for this hidden advertising,' Goldstein said. 'What this means for countries like South Africa is that we don't have the monitors who are able to follow exactly what Nestlé are doing – in our universities – on social media, and in other spaces. Thus, they can get away with promoting unhealthy foods as healthy with no comeback. 'The limited goal of improving their foods to be healthier will not be sufficient to turn the tide against the obesity tsunami we are facing,' she concluded. DM
Yahoo
28-06-2025
- Business
- Yahoo
JD Sports, M&S and Sainsbury's to face shareholder pressure over low pay
Major high street retailers are set to face pressure from shareholders over low pay in their workforce, including third-party contractors. ShareAction, which campaigns for responsible investment, has put forward resolutions on the issue, which will be voted on by shareholders at M&S and JD Sports' annual general meetings (AGMs) on Tuesday and Wednesday respectively. While the group is not filing a resolution at Sainsbury's, shareholders will directly question the board about pay transparency at the supermarket's AGM on Thursday. The companies are facing questions over wages that do not meet the 'real living wage' of £12.60 per hour nationally and £13.85 per hour in London for those aged 21 and over. These wages, which are set by the Living Wage Foundation to reflect the true cost of living, exceed the 2025/26 legal minimum wage of £12.21 set for the whole country including London. ShareAction argues the real living wage boosts stability, productivity and brand value, and has long been campaigning on the issue across the retail sector. Catherine Howarth, chief executive at ShareAction, said: 'We urge investors to support the shareholder resolutions going to a vote at the AGMs of M&S and JD Sports. 'Votes in support will endorse good governance and risk management whilst recognising the workers who keep these businesses running.' The resolutions ask M&S and JD Sports to disclose information on the number of employees earning below the real living wage and staff turnover rates as well their approach to setting base pay for contracted staff and a cost/benefit analysis of setting the real living wage across their workforce. While M&S pays direct employees at least the real living wage, it argues that third-party contractors are independent and set their own pay. M&S's board is recommending shareholders oppose the resolution, citing its recent investments in employee compensation of more than £285 million since 2022 and an increase to the standard hourly rate by more than 26%. On third-party contractors, it also said the vast majority of colleagues are paid at or above the real living wage. At the AGM, M&S could also be questioned about the major cyber attack it suffered earlier this year, which halted website orders, disrupted contactless payments, left some shelves empty and saw personal customer data taken by hackers. The company said the incident is likely to drag its group operating profits down by around £300 million this year but it expects this to be reduced through cost management, insurance and other reactions. For JD Sports, the activists argue that the firm only guarantees the legal minimum wage and lacks transparency on contractor pay. The board has advised shareholders to vote against the proposals, saying the firm complies with legal requirements and has invested more than £75 million over the last three years in removing the age banding as well as enhancing the remuneration and benefits of lowest-paid workers. Further reporting adds no value, reduces flexibility, raises costs and may harm competitiveness, the retailer said. Pensions & Investment Research Consultants (PIRC), which is Europe's largest independent shareholder advisory consultancy, is supporting the resolution at both companies' AGMs. PIRC said that while M&S has made progress on pay, there is still room to improve in formally committing to wage standards and increasing transparency for contractor pay. For JD Sports, the consultancy argues that legal compliance is not best practice and that pay transparency is needed to assess risks and resilience. It follows an identical resolution filed at Next in May, which gained the support of over a quarter of shareholders. While not legally binding, support for shareholder resolutions can put pressure on business leaders to respond to the matters raised, and more than 20% of dissent against the board can be considered a rebellion. During Sainbury's AGM, shareholders plan to stand up and ask the board to commit to disclosing the composition and pay of their workforce, employee turnover, and the feasibility of paying the real living wage for all staff, including all third-party contractors. An M&S spokesperson said: 'In addition to paying the real living wage, we offer an industry-leading range of benefits which, when taken with hourly pay, is worth up to £15.40 an hour. 'In regards to on-site third party contractors, which we use for specialist roles and to support the inherent seasonality in retail, a vast proportion of colleagues are paid at or above the real living wage and we go to great lengths to ensure they are all treated as part of the M&S family. 'While we support and act on the principle that all M&S-related colleagues should be paid well, we do not believe it is right to divest responsibility for setting pay and benefits away from businesses and their shareholders to a third party, as ShareAction would propose.' A JD Group spokesperson said: 'Our highly competitive UK colleague package is specifically designed to address the needs of our predominantly young workforce. 'We remain committed to providing fair wages and acting in the best interests of all stakeholders and have been engaging with shareholders ahead of our AGM on July 2 to outline our holistic approach to reward and benefits and are grateful for their supportive response. 'We are proud of our role as one of the UK's largest employers of young people, often giving them their first jobs and teaching them skills and disciplines that stand them in good stead for the rest of their working lives, including long-term opportunities with JD.' The PA news agency has contacted Sainsbury's for comment.
The Independent
28-06-2025
- Business
- The Independent
JD Sports, M&S and Sainsbury's to face shareholder pressure over low pay
Major high street retailers are set to face pressure from shareholders over low pay in their workforce, including third-party contractors. ShareAction, which campaigns for responsible investment, has put forward resolutions on the issue, which will be voted on by shareholders at M&S and JD Sports' annual general meetings (AGM s) on Tuesday and Wednesday respectively. While the group is not filing a resolution at Sainsbury's, shareholders will directly question the board about pay transparency at the supermarket's AGM on Thursday. The companies are facing questions over wages that do not meet the 'real living wage' of £12.60 per hour nationally and £13.85 per hour in London for those aged 21 and over. These wages, which are set by the Living Wage Foundation to reflect the true cost of living, exceed the 2025/26 legal minimum wage of £12.21 set for the whole country including London. ShareAction argues the real living wage boosts stability, productivity and brand value, and has long been campaigning on the issue across the retail sector. Catherine Howarth, chief executive at ShareAction, said: 'We urge investors to support the shareholder resolutions going to a vote at the AGMs of M&S and JD Sports. 'Votes in support will endorse good governance and risk management whilst recognising the workers who keep these businesses running.' The resolutions ask M&S and JD Sports to disclose information on the number of employees earning below the real living wage and staff turnover rates as well their approach to setting base pay for contracted staff and a cost/benefit analysis of setting the real living wage across their workforce. While M&S pays direct employees at least the real living wage, it argues that third-party contractors are independent and set their own pay. M&S's board is recommending shareholders oppose the resolution, citing its recent investments in employee compensation of more than £285 million since 2022 and an increase to the standard hourly rate by more than 26%. On third-party contractors, it also said the vast majority of colleagues are paid at or above the real living wage. At the AGM, M&S could also be questioned about the major cyber attack it suffered earlier this year, which halted website orders, disrupted contactless payments, left some shelves empty and saw personal customer data taken by hackers. The company said the incident is likely to drag its group operating profits down by around £300 million this year but it expects this to be reduced through cost management, insurance and other reactions. For JD Sports, the activists argue that the firm only guarantees the legal minimum wage and lacks transparency on contractor pay. The board has advised shareholders to vote against the proposals, saying the firm complies with legal requirements and has invested more than £75 million over the last three years in removing the age banding as well as enhancing the remuneration and benefits of lowest-paid workers. Further reporting adds no value, reduces flexibility, raises costs and may harm competitiveness, the retailer said. Pensions & Investment Research Consultants (PIRC), which is Europe's largest independent shareholder advisory consultancy, is supporting the resolution at both companies' AGMs. PIRC said that while M&S has made progress on pay, there is still room to improve in formally committing to wage standards and increasing transparency for contractor pay. For JD Sports, the consultancy argues that legal compliance is not best practice and that pay transparency is needed to assess risks and resilience. It follows an identical resolution filed at Next in May, which gained the support of over a quarter of shareholders. While not legally binding, support for shareholder resolutions can put pressure on business leaders to respond to the matters raised, and more than 20% of dissent against the board can be considered a rebellion. During Sainbury's AGM, shareholders plan to stand up and ask the board to commit to disclosing the composition and pay of their workforce, employee turnover, and the feasibility of paying the real living wage for all staff, including all third-party contractors. An M&S spokesperson said: 'In addition to paying the real living wage, we offer an industry-leading range of benefits which, when taken with hourly pay, is worth up to £15.40 an hour. 'In regards to on-site third party contractors, which we use for specialist roles and to support the inherent seasonality in retail, a vast proportion of colleagues are paid at or above the real living wage and we go to great lengths to ensure they are all treated as part of the M&S family. 'While we support and act on the principle that all M&S-related colleagues should be paid well, we do not believe it is right to divest responsibility for setting pay and benefits away from businesses and their shareholders to a third party, as ShareAction would propose.' A JD Group spokesperson said: 'Our highly competitive UK colleague package is specifically designed to address the needs of our predominantly young workforce. 'We remain committed to providing fair wages and acting in the best interests of all stakeholders and have been engaging with shareholders ahead of our AGM on July 2 to outline our holistic approach to reward and benefits and are grateful for their supportive response. 'We are proud of our role as one of the UK's largest employers of young people, often giving them their first jobs and teaching them skills and disciplines that stand them in good stead for the rest of their working lives, including long-term opportunities with JD.'
The Independent
25-06-2025
- Business
- The Independent
Investors call on chemical firms to phase out toxic substances
A coalition of investors is calling on chemical companies to phase out highly hazardous chemicals and transition to safer alternatives. The group of 43 investors, with four trillion dollars in assets under management, warned that the sector is not acting fast enough to protect vital ecosystems and human health. In a statement released on Thursday, they urged companies, including agrochemical producers, to commit to aligning their business and political strategies with globally agreed targets. This includes the UN Kunming-Montreal Global Biodiversity Framework and Global Framework on Chemicals, which focus on protecting nature and tackling environmental harm caused by chemicals and waste. The investors say companies must enhance their sharing of information on how their business impacts biodiversity as well as develop strategies to transition to making products that are safe and sustainable. Failing to address chemical pollution exposes companies and their investors to financial risks, they argued. The group highlighted how increased public awareness and scientific understanding of the long-term health and environmental consequences of chemicals has led to a rise in litigation and regulation. The statement has been co-ordinated by responsible investment group ShareAction, Achmea Investment Management, ChemSec, Erste Asset Management, IEHN of Clean Production Action, Planet Tracker and Mercy Investment Services. Signatories include BNP Paribas Asset Management, Rathbones Group, Caisse des Depots et Consignations, SVVK-ASIR, Swedbank Robur and Impax Asset Management. It comes as Government officials, business leaders, scientists and campaigners gather in Uruguay this week for discussions on the next phase in the UN Global Framework on Chemicals. Alexandra Pinzon, head of biodiversity at ShareAction, said: 'Chemical companies have a huge role to play in curbing pollution, which would help address the interlinked crises of biodiversity loss and climate change. 'The majority of manufactured products, from fertilisers and paints to make-up and clothes, rely on chemicals, but the toxicity and pollution associated with these chemicals is wreaking havoc on ecosystems and damaging human health.' Julie Gorte, senior vice president for sustainable investing at Impax Asset Management, said: 'This statement on the importance of tackling pollution and biodiversity loss has never been more welcome. 'If we want to avoid a planetary catastrophe, we must all act to achieve a circular economy and eliminate the pollution that is one of the major drivers of biodiversity loss.' Arthur van Mansvelt, senior engagement specialist at Achmea Investment Management, said: 'This statement shows investors are deeply concerned that the chemicals sector is not sufficiently mitigating the risks related to biodiversity loss from pollution.' In a separate policy-focused statement, more than 40 investors with nearly four trillion dollars in assets under management also highlighted the crucial role that regulation plays in enabling the transition of the chemicals industry to safe and sustainable products. The group outlined recommendations for governments around the world to strengthen and harmonise global policy frameworks on chemicals to support this transition.
Yahoo
25-06-2025
- Business
- Yahoo
Investors call on chemical firms to phase out toxic substances
A coalition of investors is calling on chemical companies to phase out highly hazardous chemicals and transition to safer alternatives. The group of 43 investors, with four trillion dollars in assets under management, warned that the sector is not acting fast enough to protect vital ecosystems and human health. In a statement released on Thursday, they urged companies, including agrochemical producers, to commit to aligning their business and political strategies with globally agreed targets. This includes the UN Kunming-Montreal Global Biodiversity Framework and Global Framework on Chemicals, which focus on protecting nature and tackling environmental harm caused by chemicals and waste. The investors say companies must enhance their sharing of information on how their business impacts biodiversity as well as develop strategies to transition to making products that are safe and sustainable. Failing to address chemical pollution exposes companies and their investors to financial risks, they argued. The group highlighted how increased public awareness and scientific understanding of the long-term health and environmental consequences of chemicals has led to a rise in litigation and regulation. The statement has been co-ordinated by responsible investment group ShareAction, Achmea Investment Management, ChemSec, Erste Asset Management, IEHN of Clean Production Action, Planet Tracker and Mercy Investment Services. Signatories include BNP Paribas Asset Management, Rathbones Group, Caisse des Depots et Consignations, SVVK-ASIR, Swedbank Robur and Impax Asset Management. It comes as Government officials, business leaders, scientists and campaigners gather in Uruguay this week for discussions on the next phase in the UN Global Framework on Chemicals. Alexandra Pinzon, head of biodiversity at ShareAction, said: 'Chemical companies have a huge role to play in curbing pollution, which would help address the interlinked crises of biodiversity loss and climate change. 'The majority of manufactured products, from fertilisers and paints to make-up and clothes, rely on chemicals, but the toxicity and pollution associated with these chemicals is wreaking havoc on ecosystems and damaging human health.' Julie Gorte, senior vice president for sustainable investing at Impax Asset Management, said: 'This statement on the importance of tackling pollution and biodiversity loss has never been more welcome. 'If we want to avoid a planetary catastrophe, we must all act to achieve a circular economy and eliminate the pollution that is one of the major drivers of biodiversity loss.' Arthur van Mansvelt, senior engagement specialist at Achmea Investment Management, said: 'This statement shows investors are deeply concerned that the chemicals sector is not sufficiently mitigating the risks related to biodiversity loss from pollution.' In a separate policy-focused statement, more than 40 investors with nearly four trillion dollars in assets under management also highlighted the crucial role that regulation plays in enabling the transition of the chemicals industry to safe and sustainable products. The group outlined recommendations for governments around the world to strengthen and harmonise global policy frameworks on chemicals to support this transition.
