FDBusiness.com

Global investors urge food firms to address rising water risks

 Breaking News
  • Agrial Continues Strategic Expansion With German Dairy Acquisition Agrial, the French farming and food co-operative, is continuing its quest to create value for its dairy farmer members by acquiring German company Rotkappchen Peter Julich Group, a specialist in cow’s and goat’s milk cheeses. The acquisition of Rotkappchen Peter Julich Group, which owns three famous brands in Germany, furthers the growth strategy of Eurial, [...]...
  • €191 Million to Promote EU Agri-food Products at Home and Abroad The European Commission has adopted the 2019 promotion policy work programme, with €191.6million to be made available for programmes selected for EU co-financing – an increase of €12.5 million compared with 2018. €89 million will be allocated to campaigns in high growth countries such as Canada, China, Colombia, Japan, Korea, Mexico, and the United States. Some [...]...
  • Müller Removes Sugar With New Yogurt Culture Müller Corner, one of Britain’s best loved yogurt ranges, is set to reduce sugar by up to 9% and gain a creamier texture, thanks to the discovery of a new yogurt culture. Following a rigorous research and development process which involved access to more than 13,000 strains, Müller discovered that the combination of two specific yogurt [...]...
  • Mintel Launches Purchase Intelligence in the UK Mintel, the world’s leading market intelligence agency, has launched Mintel Purchase Intelligence, the newest innovation in product comparison technology, providing rapid, reliable consumer opinion on every reported new food and drink product in the UK*. Every day, Mintel benchmarks consumer reactions to new product launches so manufacturers, companies and brands can immediately understand and analyse what is [...]...
  • Discovery, Plant-Based and Alternatives Lead the Top Ten Trends For 2019 Targeting increasingly adventurous consumers, set on new discoveries and experiences, will be key to developments in the food and beverage industry in 2019. The connected world has led consumers of all ages to become more knowledgeable of other cultures, contributing to 35 percent growth of “discovery” claims, when comparing 2017 and 2016 new product launch [...]...

Global investors urge food firms to address rising water risks

Global investors urge food firms to address rising water risks
August 20
10:50 2015

Investors managing more than $2.6trn in assets have sent joint letters to 15 international food and drink companies amid growing concerns over water security and pollution.

The letters, which were sent out to the likes of Kraft Heinz Co., Monster Beverage and Dr Pepper Snapple Group, were coordinated by sustainability organisation Ceres, which identified the 15 recipient companies as “poor performers” on water management issues.

“Many food sector executives are holding onto a mistaken view that water will forever be cheap and limitless,” said Ceres senior water programme director Brooke Barton. “But the era of cheap, plentiful water is coming to an end, and, more than ever, food companies need to address it.”

Oversight
In a recent Ceres report which evaluated 31 publicly traded US companies, 90% cited water scarcity and treatment as a risk, yet only 30% mentioned that water risks were part of major business investment and incentives.

A sample letter sent out by Ceres states: “We…believe that global water risk management is a critical aspect of financial risk oversight in the food and beverage sector…these threats can, and already are having profound near-term business impacts on food and beverage companies that are disrupting operations and supply chains, increasing capital expenditures and operating costs, and constraining revenue growth.

“As concerned shareholders with long-term investment strategies, we…seek increased transparency and disclosure about your exposure to water risk, as well as the plans, strategies and progress you are making in mitigating the company’s exposure to these issues.”

The food sector, which uses 70% of the world’s freshwater supplies, is especially at risk of water scarcity due to its use of water as both a direct ingredient and as an input to agricultural production. Factors including growing competition for water, weak regulations, aging water infrastructure, water pollution and climate change are having increasingly adverse effects on the food industry creating a need for better water management.

California drought
The letters were sent at a time where areas such as California are experiencing its worst recorded drought in history. In light of this, the World Bank expects water scarcity to affect 2.8 billion people directly by 2025.California Mayor Eric Garcetti last week issued the use of 96 million shade balls to prevent the loss of more than 300 million gallons of water each year and save the area around $250m.

Archer Daniels Midland – headquartered in California – is one of the companies to have received a letter.

2015 Investor Letter

About Author

admin

admin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 21, 2018expoSE European Asparagus and Strawberry Fair
  • November 27, 2018Health Ingredients Europe
  • November 28, 2018FOOD & LIFE
  • December 3, 2018P&P 2018
AEC v1.0.4

Jobs: Food Packaging

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements