Access to Nutrition Index (ATNI) Principles for Responsible Investment September 2012 ATNI Supported by:
ATNI context and approach Nutrition as a global health issue Implications for industry Malnutrition has significant impact globally: Nutrition is a major global trend driving changes, risks and opportunities in the food & beverage (F&B) sector: • 1 billion adults are overweight and more than 300 • The future prospects of F&B companies are closely million are obese linked to their response to reducing malnutrition (both obesity and undernutrition) o In US, $190B spent on obesity-related health care costs o Consumers in developed world markets are increasingly seeking healthier foods o Increasingly an issue in developing countries o Significant opportunities exist in the (‘double burden of malnutrition’) developing world and are growing • Undernutrition affects 1 billion people, primarily in • Given its size and reach, the private sector can play developing countries an important role in reducing malnutrition, along o Leads to 3.5 million child deaths annually with other stakeholders o Thought to account for up to 2-3% of lost potential GDP in developing countries • ATNI will rate F&B manufacturers on their nutrition policies, practices, and performance in order to: • Provide companies a tool for benchmarking their nutrition practices • Serve as an impartial source of information for investors and other stakeholders • By encouraging companies to make continual and sustained improvements, ATNI ultimately seeks to help reduce malnutrition and improve health • ATNI is engaging investors in F&B manufacturers to help them understand nutrition issues and encourage assessment of companies ’ performance on this material, long-term strategic issue 2 NOT FOR DISTRIBUTION OR CITATION
Review of existing peer indexes To build a ‘best in class’ index, extensive research was conducted to learn lessons from other ratings and rankings Approach • Focused on 32 most relevant rankings, ratings and indexes • Evaluated 60 elements • Conducted interviews for more detailed review of 10 indexes • Team members conducting research have significant experience in the development of indexes 3 NOT FOR DISTRIBUTION OR CITATION
Governance and management ATNI Project Team GAIN staff and advisors drive development and day-to-day activities Independent Advisory Panel Expert Group Provides strategic advice on stakeholder Provides technical advice on methodology engagement, institutional considerations for assessing companies and financial sustainability Global Stakeholder Network Widest possible network of stakeholders, including those involved in public consultation on Index methodology 4 NOT FOR DISTRIBUTION OR CITATION
Scope Malnutrition coverage: Undernutrition through obesity Stage of supply chain: Food and beverage manufacturers only (Upstream, retailers, and food service companies potentially included in the future ) Type of company: Multinational corporations and regional companies Core Index: 3 Spotlight Indexes: 25 of the world ’ s largest food and beverage 10 of the largest companies companies (including privately held by F&B revenue in each companies) market India Mexico South Africa 5 NOT FOR DISTRIBUTION OR CITATION
Foundations of methodology World Bank Repositioning Nutrition as Central to Development WHO Harvard University Special Session on Business action to fight Children micronutrient deficiency Copenhagen MDGs Consensus Includes 4 WHO/FAO Guidelines linked to The Lancet on food fortification malnutrition Series on with micronutrients malnutrition 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ATNI WHO JPMorgan Synopsis Report Reducing Risks, Obesity: Insight Investment/ Promoting Reshaping JPMorgan Healthy Life the food industry The Proof of the Pudding Insight Investment/IBLF WHO WHO A Recipe for Success Recommendations for Global Strategy on Diet, Marketing Food to Physical Activity and Children Health City University Analysis of 25 F&B companies 6 NOT FOR DISTRIBUTION OR CITATION
Methodology structure CORPORATE PROFILE (Core & Spotlight Indexes) Evaluating the level to which commitment to nutrition is embedded in core strategy and backed by financial / Nutrition governance human resources Formulating and delivering Evaluating the extent of companies’ implementation of appropriate, affordable, accessible commitments relating to R&D, product formulation, pricing, and distribution products Evaluating the extent of companies ’ implementation of Influencing consumer choice and commitments relating to advertising, nutrition education, behavior promotion of physical activity and engagement with policymakers and other stakeholders Assessment of nutritional appropriateness, affordability and PRODUCT PROFILE 1 accessibility of representative selection of companies’ (Spotlight Indexes only) product portfolios in Spotlight countries Composite score for each Scores will also be available for each company by company category Undernutrition score 1 Product Profile findings will not be incorporated into companies’ overall composite scores, but will be provided as supple mentary information only 7 NOT FOR DISTRIBUTION OR CITATION
Corporate Profile structure Criteria with additional undernutrition-specific Indicators in red Category Description Criteria Section 1: Nutrition governance A Corporate strategy, management and A1: Corporate nutrition strategy governance A2: Nutrition governance and management systems A3: Quality of reporting Providing access to appropriate, affordable foods Section 2: Formulating and delivering appropriate, affordable, accessible products B Formulating appropriate products B1: Product formulation B2: Nutrient profiling system C Delivering affordable, accessible C1: Product pricing products C2: Product distribution Section 3: Influencing consumer choice and behavior Impact on food consumption environment D Responsible marketing policies, D1: Responsible marketing policy: all consumers compliance and spending D2: Auditing and compliance with policy: all consumers D3: Advertising focus: all consumers D4: Responsible marketing policy: children D5: Auditing and compliance with policy: children D6: Advertising focus (children) and policy impact E Supporting healthy diets and active E1: Staff health & wellness lifestyles E2: Supporting consumer-oriented healthy eating and active lifestyle programs F F1. Product labeling Product labeling and use of health and nutrition claims F2. Health and nutrition claims G G1: Lobbying and influencing governments and policymakers Influencing governments and policymakers, and stakeholder G2: Stakeholder engagement engagement 8 NOT FOR DISTRIBUTION OR CITATION
Company research process * Complete Engagement Verification / Develop methodology Desk-based analysis meetings finalization • Extensive • Company research • Each company • Information provided consultation with conducted by MSCI approached for a by companies during funders, Expert ESG Research* meeting to discuss meetings is Group and initial analysis incorporated into • Review of Independent Advisory analysis • Information not companies ’ websites, Panel • Companies provided annual/CSR reports, available via desk • Online public and third-party research requested with draft analysis to stakeholder reports/analysis from companies review for accuracy consultation held in and with regards to • This process November 2011 confidentiality generates the • Pilot test of • Final score and companies ’ initial methodology on scores rating generated subset of companies completed * Please see disclaimer on page 14 9 NOT FOR DISTRIBUTION OR CITATION
Next-steps and long-term proposition • First Index scheduled for launch in early 2013 ATNI I (2013) • Institutional home established (outside of GAIN) ATNI II (2015) • ATNI II published in 2015 and on a regular basis thereafter • Impact regularly monitored against metrics • Methodology evolves over time to incorporate advances in practice, ATNI III (2017) new evidence, policies, guidelines, standards, etc. ATNI IV (2019) For more information, please visit www.accesstonutrition.org 10 NOT FOR DISTRIBUTION OR CITATION
Recommend
More recommend
