Resolution calling for healthier products by Nestle rejected

At its annual general meeting, a resolution calling on Nestle to set a target to increase the proportion of its sales from healthier products was rejected. Eleven per cent voted for the resolution while 88 per cent against it and one per cent abstained from voting.

A coalition of Nestle shareholders, co-ordinated by ShareAction, an investment NGO, had filed the resolution challenging Nestle to improve its impact on people’s health.

The shareholder coalition asked Nestle to implement internationally accepted standards that define healthy food rather than deviating from credible guidelines, amid concerns over the regulatory, reputational, and legal risks to the company, and public health impacts associated with an over-reliance on less healthy foods.

“While the vote we achieved today may be less than we wanted, the direction of travel is clear. Investors and consumers are recognizing the importance of addressing the business risks and public health impacts of an industry that is heavily reliant on the sales of unhealthy food. They have growing expectations not only from Nestle, but from all food manufacturers. Left unaddressed, the public health trends that spurred this resolution will only worsen; consequently we expect investor support for such resolutions at food companies to increase. We look forward to continued engagement with Nestle and hope to see progress towards the health goals the company itself claims. While the majority of shareholders did not support the resolution, we hope that it has encouraged them to think about the public health impacts of their investments,” said Simon Rawson, deputy chief executive of ShareAction.