Investors are pressuring food companies to cut down antibiotic usage in supply chains due to rising antimicrobial resistance (AMR) concerns.
- Approximately 70% of antibiotics globally are used in animals, sparking health concerns akin to the climate crisis.
- AMR is linked to nearly 5 million annual deaths worldwide, costing $100 trillion in economic losses.
- The Fairr initiative, backed by 370 global investors, is targeting 12 major North American food chains over antibiotic use.
- Leading companies are starting to address these concerns, with McDonald’s and Restaurant Brands International taking significant steps.
Investors have taken a decisive stance, pressing food companies to diminish their antibiotic consumption amid increasing fears over antimicrobial resistance (AMR). This growing concern, reported by The Financial Times, highlights how 70% of all antibiotics globally are administered to animals to stave off disease. The spotlight has consequently shifted to companies heavily involved in meat production or procurement, as they become a significant focus for AMR campaigners.
Current actions by investors reflect a heightened determination to tackle AMR, now perceived as severe a threat to global health as the climate crisis. According to the World Health Organisation, AMR is associated with close to 5 million deaths each year globally, alongside a staggering $100 trillion in economic losses. In response, the Fairr initiative was launched last year, concentrating on the risks linked to intensive livestock rearing. This initiative has garnered the backing of approximately 370 investors worldwide, collectively managing assets worth $71 trillion. It specifically focuses on 12 large North American fast-food chains, including prominent names such as McDonald’s, Yum Brands (owner of KFC and Pizza Hut), and Restaurant Brands International (owner of Burger King).
McDonald’s has publicly announced its efforts to reduce antibiotic usage within its supply chain, explicitly prohibiting the routine application of medically important antibiotics in livestock rearing. Meanwhile, Restaurant Brands International has stated its commitment to “responsible, sustainable sourcing,” highlighting substantial progress in this area. Such responses from industry giants mark a promising shift towards addressing AMR challenges.
The importance of investor influence was echoed by Dame Sally Davies, the UK government’s special envoy on antimicrobial resistance, who remarked, “Politicians and policy can do a lot but investors are very powerful.” Similarly, Sophie Deleuze, lead ESG analyst at Candriam, underscored the importance of analysing livestock companies’ policies on antibiotic use reduction. Deleuze further examined how these companies encourage suppliers to adopt more sustainable practices, striving to “actively combat the development of AMR.”
Recent reports by animal activists highlighted alleged welfare issues on farms supplying a major retailer, intensifying calls for supermarkets to support local farmers, such as introducing ‘Buy British’ sections online.
The ongoing efforts by investors and companies signify a pivotal movement towards mitigating the global threat posed by antimicrobial resistance.
