Serious beef
Investors have targeted many governance issues at companies and now antibiotics can be added to the list.
And though that sounds a little flippant, it’s a serious subject. The Financial Times reports that Legal & General and Amundi are piling the pressure on McDonald’s to help reduce volumes of the medicine used in the food chain.
Antibiotics and their overuse, leading to antimicrobial resistance (AMR), has been a long running issue for campaigners among experts who believe it represents a massive risk.
Maria Ortino, global ESG manager at LGIM, is quoted in the FT saying AMR risked “devastating consequences both on humans and on the economy”. Investment managers are no dopes.
No way, Norway
Last week, we reported that Norges Bank, Norway’s vast sovereign wealth fund, is about to intensify pressure on US companies through the use of ESG proposals at this season’s AGM.
This week, we can report that the news did not go down well in all quarters of the US corporate world. Cue The Wall Street Journal columnist, James Freeman.
Freeman’s opening gambit is: “Climate activism and hypocrisy have become nearly synonymous given the high correlation between prominent advocacy and private jet travel.” Ouch.
He then goes on to educate his readers with the fact that Norway’s fund pushing ESG collected its money by pumping oil and gas from the seabed.
But Freeman turns into a gusher when he starts waving the Stars and Stripes. “By all means, Norway’s government can do as much as it wants on climate and impose as many costs on its citizens as voters will bear. But brazenly demanding that Americans pay for Norway’s virtue signalling is wrong.” Because, yeah, the US has never interfered in anyone else’s business.
Over the rainbow lanyard
News from closer to home: it seems diversity and ESG have both turned into “dead weight” tick box exercises, with boards seeing very little return on investment on Lord-knows-how-many different programmes.
Broadcaster, writer and diversity consultant Simon Fanshawe argues in The Times that disappointing results probably stem from not understanding the purpose of diversity. Should boards be asking how diversity will “enhance’ an organisation’s ability to achieve its strategic goals? Or what it is they value in people, so they can “combine their differences to most effect”? Or, lastly, how recruitment and promotion is being redesigned to build “the strongest teams of differences in skill, background, culture and identity…”?
“Rather than just taking float at Pride and wearing a rainbow lanyard,” writes Fanshawe, “diversity needs deep thought throughout your company about accurate and effective ways of opening opportunities for talent.”
Soba proposition
Noodling around the regulatory news, we discover that investors have served up a shareholders’ revolt at The Restaurant Group, owners of Wagamama, your favourite Asian fusion eatery, with a 45% vote against the remuneration report. Not the biggest revolt this season—that accolade goes to Unilever with 58%—but will certainly place the board in a bit of hot broth.
Anyway, the whole thing proves investors are still concerned about pay. Something to think about while you’re forking out for ramen this week.