Legal & General is among activist investors pressuring Nestle S.A. to ramp up sales targets of healthier goods, ahead of the food and drink conglomerates’ annual meeting on Thursday.
“Nestlé, as the world’s largest food and drink manufacturer, could do so much more to support population health,” activist group ShareAction said in a statement.
Legal & General joined 25 other shareholders, collectively responsible for over US$3trn of assets, in calling for Nestle to shift to offering healthier foods.
“Supermarkets […] are currently flooded with less healthy foods, causing significant harm to population health, and creating systemic risks to investor returns,” the group said.
Nestle agreed to report on the nutritional standards of its goods, which include brands Cheerios, KitKat and Smarties, after calls from ShareAction last year.
The first of these reports came in February and showed nearly 40% of Nestle’s products were high in salt, sugar or fat.
ShareAction warned of “escalated engagement” though, arguing Nestle had not met demands since it had not introduced targets to replace sales of less healthy foods.
Over half of the world’s population could be overweight or obese by 2035 “unless serious and immediate action is taken,” ShareAction said, citing World Obesity Federation data.
“Nestlé has an opportunity to stay ahead of food-related regulation and evolving stakeholder expectations.”