Code violators such
as Nestlé excluded from FTSE4Good ethical investment index
11 July 2001
Nestlé has been
excluded from the new FTSE4Good
ethical investment index launched yesterday due to its continued
violation of breastmilk substitutes marketing requirements.
Nestlé is the
largest violator of the 1981 International
Code of Marketing of Breastmilk Substitutes and subsequent,
relevant Resolutions adopted by the World Health Assembly. Its
aggressive marketing of breastmilk substitutes contributes to
the unnecessary death and suffering of infants around the world.
UNICEF has stated that reversing the decline in breastfeeding
could save the lives of 1.5 million babies every year.
with other manufacturers of breastmilk substitutes violating the
Code, were excluded from the FTSE4Good index under section eight
of the criteria
for social issues and stakeholder relations which states:
must not have breached the infant formula manufacturing section
of the International Code on Marketing of Breastmilk Substitutes
according to the International
Baby Food Action Network [IBFAN]."
Jonathan Dorsett, Campaigns
Officer at Baby Milk Action, the UK member of IBFAN said:
new FTSE index gives those who want to invest in the market the
opportunity to take into account issues of corporate social responsibility.
The fact that this index excludes Nestlé for its marketing
malpractice, sends a clear message to Nestlé that it needs
to bring its activities into line with the Code and Resolutions
in all countries, and sends a message to investors to avoid Nestlé
until it makes the necessary changes."
For more information
please contact; Jonathan Dorsett, Campaigns Officer, Baby Milk
Action tel: 01223 464420 fax: 01223 464417 email: email@example.com
23, St. Andrews Street, Cambridge, CB2 3AX
Notes for editors
- Baby Milk Action
is a non-profit organisation which aims to save infant lives
and to end the avoidable suffering caused by inappropriate infant
feeding. Baby Milk Action works within a global network to strengthen
independent, transparent and effective controls on the marketing
of the baby feeding industry. The global network is called IBFAN
(the International Baby Food Action Network) a network of over
150 citizens groups in over 90 countries.
- Nestlé is
the target of an international
boycott in 20 countries because of its marketing malpractice.
The boycott in the UK is the most widely recognised consumer
boycott according to Ethical Consumer magazine.
- Nestlé, which
controls the largest share of the infant food market (about
40%), is responsible for more violations of the International
Code of Marketing of Breastmilk Substitutes and subsequent
relevant resolutions adopted by the World Health Assembly than
any other company. The recent IBFAN report Breaking
the Rules, Stretching the Rules 2001 details many of Nestlé's
violations. Also see the codewatch
section of this website.
is an index for "socially responsible investment"
designed by FTSE, one of the world's leading global index providers.
According to the FTSE4Good website: "FTSE4Good is a series
of benchmark and tradable indices facilitating investment in
companies with good records of corporate social responsibility.
FTSE4Good is unique - there is no other socially responsible
index quite like it. Independently defined and researched, FTSE4Good
sets an objective global standard for socially responsible investment.
The FTSE4Good Selection Criteria cover 3 areas:
- Working towards
- Developing positive
relationships with stakeholders
- Upholding and
supporting universal human rights"
criteria were developed by FTSE in association with the Ethical
Investment Research Service.
UK pension firms
offering ethical funds already avoid Nestlé because of
its baby food marketing record.