Triodos Sustainability Research faces the considerable challenge of finding large cap, multinational food companies that meet our investment criteria. Triodos Sustainability Research is currently looking at large, multinational companies in the food products industry. Like all companies we research, these companies are judged on their efforts to improve environmental performance, uphold social standards and follow ethical considerations. Although research is still ongoing, we face a big dilemma because none of the companies seem to meet all of our investment criteria. Food is an important basic need, but the food and agriculture industry is also closely linked to a wide range of sustainability issues. In order to become eligible for investment by Triodos Bank, food companies are required to meet a number of social, environmental and ethical requirements.
Danisco dialogue
14-12-2010 | Triodos Sustainability Research and Danisco discuss animal trials in the feed industry and Triodos Bank requirements for animal testing. Danisco of Denmark is one of the world’s largest food and feed ingredients companies. The company considers itself to be a sustainability leader, helping to transform the food industry. In line with its transparent and open company culture, the company invited Triodos Sustainability Research to a teleconference to explain its position on animal testing and to better understand our requirements.
Danisco was recently reassessed by Triodos Sustainability Research. The company was transparent about its sustainability practices and its goals, and readily provided additional information on animal testing. Danisco informed us that it tests animal feed ingredients on livestock – the animals are raised in a conventional way and are simply studied more closely to determine the effects of various enzymes. For these tests, the company has an animal testing policy that addresses the three Rs (Reduce, Refine and Replace) and revenues from products tested on animals do not exceed 5% of total.
However, Danisco also conducts physiological tests on animals to better understand the effects of certain feed additives, and animals are killed as part of some trial procedures. These tests are not required by law and the company conducts them in order to develop better products. This is where Danisco does not meet Triodos Bank requirements; we believe that companies should limit animal tests to those required by law.
During the call, Danisco provided several examples of feed additives that are not only beneficial to the farming industry but contribute to sustainability as well. For example, the company produces alternatives to antibiotics and growth promoters, which are often ingredients in animal feed. It also produces certain enzyme additives that allow animals to get more nutritional value from poor quality feed. This accommodates and stimulates the trend toward using agricultural waste products as animal feed, rather than grain. This in turn reduces competition for food and makes farming more efficient and less wasteful.
During the call, we acknowledged Danisco’s significant efforts to support the shift toward more sustainable farming methods. At the same time, we note that the industry is increasingly focused on improving the nutritional value of feed through the use of additives that require animal testing. This is cause for concern because animal testing may increase as a result. Moreover, we question for whom Danisco’s feed products are “better.” Animal welfare is the basis of our animal testing standard – how much do the animals in commercial farming operations benefit from Danisco’s products?
The result of the teleconference is that Danisco better understands Triodos Bank’s position. We value the company’s openness and the information it provided. We also have a better understanding of its animal testing procedures, which helps us to further define our standards for the selection of frontrunners in the industry.
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Note: The issues explored in this article are specifically relevant for sustainable investments on the stock market. Triodos Bank believes that our socially responsible investments are a powerful means of promoting our values and working for greater sustainability, while enabling us to offer a complete range of attractive investment options to customers who choose to invest on the stock market.