FAIRR strong arms fast food franchises to disclose antibiotic use in meat

13 Jul 2023 --- The FAIRR Initiative representing 71 major investors, has instigated a global request to 12 major fast food chains to disclose their antibiotic use and reduction policies to tackle antimicrobial resistance (AMR) in the protein supply chain. Companies in question include McDonald’s, Yum! Brands (KFC & Pizza Hut) and Restaurant Brands International (Burger King).

“AMR not only poses a threat to public health, killing over one million people each year but represents a significant risk to the wider economy – with potential impacts felt from trade to healthcare, to livestock output,” Jo Raven, director of Thematic Research and Corporate Innovation at the FAIRR Initiative, tells Food Ingredients First.

“Disclosure must go hand-in-hand with rigorous policies that cover all geographic regions and types of animal products sold by fast food retailers and is an important step toward setting measurable targets for reducing antibiotic use.”

AMR is a US$100 trillion threat to the global economy, according to FAIRR and the fast food chains are a key driver. This represents a systemic risk, like climate change or COVID-19, which could harm investor portfolios.

Demonstrative disclosure 
The disclosure initiative aims to tackle AMR in animal protein supply chains and asks that the franchises provide information about the quantity and type of antibiotics used and progress toward antibiotics reduction targets aligned with WHO guidelines.

Companies will be asked to demonstrate sufficiently rigorous existing antibiotic policies and provide evidence of implementation through target setting and auditing. It also calls for policies to cover all key proteins rather than limiting them to subsets – such as poultry – which has been a common approach to date, and to disclose the types of antibiotics in use and in what quantity.The investor group will first request information and then open a dialogue with the fast food companies.

“Many livestock producers use antibiotics for growth promotion or disease prevention, a practice threatening the long-term efficacy of these drugs for humans and animals,” Raven explains.

“Producers should limit the use of antibiotics to when animals are sick, and take steps to prevent them getting sick in the first place – for example by improving animal welfare or running vaccination programs.”

Major protein exporters called out
Failure to adequately address AMR could result in ten million deaths annually and a substantial 3.8% decline in global GDP by 2050, according to FAIRR.

The overuse of antibiotics, particularly in the animal industry and poor food safety practices is a breeding ground for antibiotic-resistant pathogens in the food system. 

The new initiative move sees 71 institutional investors and representatives collectively worth US$15.2 trillion in combined assets join a Restaurant Antibiotics Engagement led by FAIRR’s investor network.

The investor group will write to the companies requesting additional information, followed by company dialogues until December 2023. FAIRR will publish the first formal company assessments in Spring 2024. 

The companies targeted are Bloomin’ Brands, Brinker International, Darden Restaurants, Domino’s Pizza Inc, McDonald’s Corporation, Papa John’s International, Restaurant Brands International (owners of Burger King), Starbucks, Texas Roadhouse, The Cheesecake Factory, The Wendy’s Company, Yum! Brands.

These are the world’s largest purchasers of animal protein such as meat, eggs, fish and dairy.An earlier initiative by investors saw 19 fast food restaurants disclose their antibiotic policies. 

Stagnation of policies
The initiative builds on an earlier one between 2016 and 2019 in which 19 fast food restaurants disclosed antibiotic policies; however, company efforts faded in recent years due to a lack of investor pressure. 

“By overusing these vital drugs, we are making them less effective against deadly diseases, a huge risk to public health and financial stability, as the COVID-19 pandemic showed,” says Jeremy Coller, founder at the FAIRR Initiative.

“It’s a threat to the world economy, but one we can avoid if fast food giants take the lead by cleaning up their supply chains – a process that starts with them committing to making these long over-due disclosures to their investors.”

A FAIRR analysis shows that company policies have taken a step back or stagnated. “Some producers are applying antibiotic reduction policies to only one geographic region or only one animal species – such as chickens but not cows or pigs,” says Dr. Emma Berntman, senior engagement specialist at FAIRR.

“And some are not providing the data on antibiotic use that helps investors judge the success of existing policies in reducing risk,” Berntmann concludes. 

In 2022 FAIRR and the Good Food Institute launched a reporting framework for alternative meat, seafood, eggs and dairy companies to reveal their climate, biodiversity, nutrition and other ESG impacts. 

By Inga de Jong