Overuse of Antibiotics in Protein Supply Chains
Our collaborative investor engagement on Antibiotics was supported by more than 70 institutional investors, representing $5.5 trillion in AUM. To protect public health and long-term value creation, the engagement asks 20 global food companies to limit the use of antibiotics in their supply chains. This can be achieved by:
- Establishing an antibiotics policy to phase out routine, prophylactic use across all supply chains.
- Specifying clear targets and timelines for implementation.
- Increasing transparency by reporting on implementation and data verification.
Background
The use of antibiotics in protein supply chains is a leading cause of antimicrobial resistance (AMR) in humans. The food industry is the largest consumer of antibiotics and often uses medicines to prevent disease or promote growth in otherwise healthy animals. In a recent report showing that drug-resistant infections could cost the world around US$100 trillion in lost output by 2050, the UK government described the practice as “excessive and inappropriate”.
The misuse of antibiotics presents a systemic risk to investor portfolios and public health, which is relevant to the food, pharmaceutical, healthcare and insurance industries.
Target Companies
Investor Members can access company-level analysis about each of the target companies. The last update for this engagement was in May 2019.
Whitbread PLC
The Wendy’s Company
The Restaurant Group
The Cheesecake Factory
Texas Roadhouse
Sonic Corporation
Restaurant Brands International
Papa John’s International
Mitchells & Butlers
McDonald’s Corporation
Marston’s PLC
JD Wetherspoon
Greene King
Domino’s Pizza Group
Dine Brands
Denny’s
Darden Restaurants
Brinker International
Bloomin’ Brands
Material Risks
The misuse of antibiotics in livestock is a significant contributor to AMR. Global meat production accounts for 73% of all antibiotic use, which is projected to increase by 11.5% between 2017 and 2030. Protein producers have long used antibiotics to help animals achieve higher slaughter weights and prevent them from contracting diseases caused by unhygienic and crowded conditions,
Growing scrutiny on antibiotic use worldwide has resulted in better practices and more regulation. However, disclosure on the use of antibiotics remains poor, with 62% of Index companies (updated in December 2021) still categorised as ‘High Risk’.
Resources
See all the briefings that the FAIRR Initiative has released on the overuse of antibiotics in protein supply chains.
Report
Antimicrobial resistance (AMR) is now globally acknowledged as a fundamental threat to public health and the global economy. The overuse and misuse of antibiotics…
Report
In 2016, FAIRR initiated a three-year collaborative engagement to ask large food companies to end the nontherapeutic use of antibiotics important to human health…
Report
Outlines investment risks linked to farm antibiotic misuse, and how investors can drive improvements in the food industry.…