At the recent Annual General Meeting (AGM) of Nestlé, shareholders rejected a proposal to increase the quantity of healthier products in the company’s portfolio. The resolution, put forward by UK NGO ShareAction and other Nestlé shareholders, aimed to improve the company’s impact on people’s health. Despite this, a majority of shareholders, including Legal and General Investment Management, Candriam, and others, disagreed with the motion.
Nestlé CEO Mark Schneider addressed concerns about the company’s products, stating a commitment to responsible consumption, even in their “more indulgent” offerings. This comes in light of a study that revealed Nestlé adding sugar and honey to certain products sold in lower-income regions, sparking criticism from NGOs like Public Eye and the International Baby Food Action Network.
Simon Rawson, deputy chief executive of ShareAction, acknowledged the rejection of the vote but emphasized the importance of addressing public health impacts and business risks associated with the food industry. He noted a shift towards healthier food choices and called for continued engagement with Nestlé to achieve health goals.
Additionally, Rawson highlighted the challenges of shareholder proposals in Switzerland, which require amendments to companies’ articles of association, deterring some from supporting resolutions like the one proposed. He emphasized the need for reform to facilitate constructive shareholder proposals in the future, as investors show growing interest in such initiatives.
Overall, despite the rejection of the resolution, there is a clear trend towards promoting healthier food options and addressing public health concerns within the food and beverage industry. Stakeholders, investors, and consumers are increasingly pushing for change, signaling a shift towards more sustainable and health-conscious practices in the sector.
