News releases

Investors representing £1 trillion back Schroders-led sugar framework

31/03/2017

Schroders and Rathbone Greenbank have jointly produced a framework as a guide for investors to ensure companies are adapting to changing global attitudes towards sugar.

Public Health England has challenged the food and drinks industry to cut sugar by 20% by 2020, while a recent health report showed there has been a 24% increase in the number of teeth being removed from children aged four and under1. A number of countries, including the UK in 2016, have also introduced sugar taxes.

There is growing evidence that consumers are responding to this medical and  regulatory focus with, particularly in the US, the consumption of carbonated soft drinks declining.  

The new Schroders/Rathbone Greenbank framework consists of five engagement principles; governance, strategy, implementation, public policy and demonstrating progress.

The goal is to provide investors with the tools to encourage food and drink companies to provide greater transparency on how they are adapting to the material challenges the sugar industry faces. 

Elly Irving, Environmental, Social and Governance Analyst, Schroders, said:

“The rise of global obesity, diabetes and diet-related disease is well known but we think the scale of the issue now makes this an investment concern.

“As this trend continues, we think companies will have to invest more in R&D, innovation and product reformulation.

“We believe that sugar is a material investment issue for all global fund managers and we would encourage investors to sign up to our robust framework and use this in engagement going forward.”

Matt Crossman, Engagement Manager, Rathbone Greenbank, said:

“By building a framework for gathering information and setting baseline expectations for companies to follow, we hope to raise the profile of sugar-related health concerns and seek to identify leaders and laggards in the relevant sectors.”

Please click on the attachment to view the full report.

 

For further information, please contact:

Andy Pearce                           Tel: +44 (0)20 7658 2203/andy.pearce@schroders.com

Estelle Bibby                           Tel: +44 (0)20 7658 3431/estelle.bibby@schroders.com

 

Notes to Editors

For trade press only.  To view the latest press releases from Schroders visit: http://ir.schroders.com/media

1According to the Faculty of Dental Surgery at the Royal College of Surgeons

Schroders plc

Schroders is a global asset management company with responsibility for £397.1 billion (EUR 465.2 billion/$490.7 billion) assets under management and administration as at 31 December 2016.  Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.   

With one of the largest networks of offices of any dedicated asset management company, we operate from 37 offices in 27 countries across Europe, the Americas, Asia, Middle East and Africa.  Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.

Further information about Schroders can be found at www.schroders.com.

Issued by Schroder Investment Management Ltd, which is authorised and regulated by the Financial Conduct Authority.  For regular updates by e-mail please register online at www.schroders.com for our alerting service.