In response to concerns over Nestlé’s high-sugar baby foods and its broader product portfolio, shareholders are urging the company to enhance its range of healthier food options. The resolution, backed by investors including Legal and General Investment Management (LGIM), with assets totaling $1.68 trillion, will be put to a vote at Nestlé’s Annual General Meeting in Lausanne, Switzerland.
Lack of Clarity on Health Targets
Despite Nestlé’s announcement of new health targets last year, which aimed to increase sales of more nutritious products by 50% by 2030, shareholders argue that the company’s commitments lack ambition. Catherine Howarth, Chief Executive at ShareAction, notes that Nestlé has not provided a clear plan for shifting its sales towards healthier food options, prompting concerned investors to propose this resolution.
Call for Internationally Recognized Targets
The resolution calls for Nestlé to establish internationally recognized targets aimed at significantly reducing the sales of unhealthy foods globally. While Nestlé’s corporate webpage emphasizes its commitment to enhancing the quality of life and promoting healthier futures, shareholders assert that a substantial portion of its global sales still comprises unhealthy products containing high levels of salt, sugar, and fats.
Scandal Surrounding High-Sugar Baby Foods
The shareholders’ push for healthier offerings comes amid a scandal concerning Nestlé’s high-sugar baby food sold in low- and middle-income countries. An investigation by Public Eye and the International Baby Food Action Network (IBFAN) revealed that Nestlé’s baby food brands, marketed as supporting young children’s development, contain elevated levels of added sugar, posing health risks.
Discrepancies in Sugar Content
The investigation highlighted discrepancies in sugar content across Nestlé’s products, with variations observed based on the country of sale. While Nestlé promotes certain baby food products without added sugar in Switzerland, similar products sold in Senegal and South Africa contain significant amounts of added sugar. This disparity underscores concerns about the company’s marketing practices and product formulations, especially in regions with lower regulatory oversight.
As the resolution goes to vote, shareholders underscore the urgency for Nestlé to address these issues and prioritize the provision of healthier food options. They emphasize the importance of aligning with global health recommendations, such as those set forth by the World Health Organization (WHO), which advocate for limiting added sugar in baby foods and promoting healthier dietary choices from infancy.
SOURCE: Ref Image from Swiss Info
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