Food industry investor summit meets to discuss what's needed from government

As DEFRA begins planning its new Food Strategy, food industry investor summit meets to discuss what is needed from strategic government intervention

As Defra begins the development of its food strategy, with its Food Strategy Advisory Board being announced last month, a summit of over 100 investors and business leaders has met in London to discuss the urgent need for the food system and new food strategy to start supporting health and environment goals, while keeping a focus on long term profitability.

The summit, Rewriting the recipe: Investing in a healthier, sustainable food future, held yesterday, was organised by The Food Foundation and City St George’s, University of London and highlighted the link between the need for greater transparency in, and action from, the food and beverage sector and how this could in turn unlock more opportunities for long-term investor returns.

The summit was set up in recognition of the key role investors have to play in food system transformation. Investors are increasingly aware of the material financial risks – systemic, direct and transitional – associated with a failure to make healthier and more sustainable diets affordable and accessible for everyone.

The food system is responsible for up to a third of GHG emissions and is one of the principal drivers of biodiversity loss and deforestation globally.

In the UK we have also seen a rise in economic inactivity due to ill health and rising levels of obesity. If left unmanaged, these issues facing the food system will result in further direct and systemic risks for the economy, society and investors.

Rebecca Tobi, Senior Business and Investor Engagement Manager, The Food Foundation 
said: "We would like to see the new food strategy set clear targets and bring in legislation for long-term change of the food system.

"We need to see mandated requirements for disclosure by food businesses of data on key metrics (including the healthiness and sustainability of food sales) and move on to develop a legislative framework that provides the basis for future policy development.

"This is also a call that we are hearing from investors, as accurate, comparable data and policy certainty and consistency are crucial for better managing material financial risks."

Speakers at the event included Henry Dimbleby, former government food tsar, author of the Independent National Food Strategy and co-founder of Bramble Partners and Leon restaurants and leading investment experts from Lloyds Bank Commercial Banking, BNP Paribas Asset Management, Greenbank, Guys and St Thomas’ Foundation and The First Thirty.

Henry Dimbleby said: "Our economy is inside nature, not external to it. Currently the food system is the largest cause of biodiversity loss, of water pollution and stress and the second greatest cause of climate change. It is also the largest cause of avoidable ill health by far.

"We need to start doing things differently. The Government Food Strategy must make sure nature is visible and make it less attractive to both buy and sell the foods that are harming nature and health.

"This can be done through measures such as tax and banning HFSS advertising. The Food Strategy needs buy in from the Prime Minister and if action is taken quickly at the beginning of the term, this could lead to really meaningful change."

The first panel at the event discussed the need to drive transparency and tackle corporate influence in order to establish a healthier food future. This included calls for policy changes to help improve transparency and support a business transition towards a more sustainable and healthy food system. 

Questions were raised around how conflicts of interest and a lack of reporting transparency from businesses are hindering progressive food policy development.

The Food Foundation also published a briefing on corporate lobbying yesterday, which uncovered the concerningly opaque nature of food industry lobbying in the UK and the lack of available information in the government's transparency registers which makes it impossible to get a sense of the true extent of industry lobbying on specific policies.

The second panel discussed unlocking opportunities at the intersection of food, health and innovation. Opportunities were highlighted for investors and businesses to support food and health outcomes through innovation, including examples of how transparency can unlock investment opportunities.

Rachel Crossley, Head of Stewardship, Europe, BNP Paribas Asset Management, said: "There is no need to reinvent the wheel with the Food Strategy.

"We have the HoL Committee report, we have the 2021 National Food Strategy. Just do it! There should be a mandatory corporate disclosures system in the UK which includes double materiality reporting."

Many of those present were from the 35 member organisations of the Investor Coalition for Food Policy (the Food Foundation is the secretariat), which exists to harness the power of the investment community to engage with the Government on food system related issues, and has more than £6 trillion in assets under management.

Matthias Lomas, Engagement Director – Investment, Guy's & St Thomas' Foundation, and incoming Chair of the Investor Coalition said: "Greater business transparency and accountability is a priority for the year ahead - and this is key to the food system change we want to see.

"This needs to include pushing forward with the FDTP, exploring fiscal measures, monitoring of corporate lobbying and ensuring the UK reporting requirements are aligned with international frameworks."

FOR MORE INFORMATION
Please contact Juliet Grant on 07929075489 or email juliet.grant@foodfoundation.org.uk

AVAILABLE FOR INTERVIEW
Rebecca Tobi, Senior Business and Investor Engagement Manager, The Food Foundation 

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ABOUT THE FOOD FOUNDATION
The Food Foundation is a charity working to influence food policy and business practice, shaping a sustainable food system which makes healthy diets affordable and accessible for all. We work in partnership with researchers, campaigners, community bodies, industry, investors, government and citizens to galvanise the UK’s diverse agents of change, using surprising and inventive ideas to drive fundamental shifts in our food system. These efforts are based on the continual re-evaluation of opportunities for action, building and synthesising strong evidence, convening powerful coalitions, harnessing citizens’ voices and delivering impactful communications.        
Registered Charity Number 1187611.