Big Mac beef: LGIM takes aim at McDonald’s for ‘overuse’ of antibiotics in meat production
Asset management giant Legal & General Investment Management (LGIM) is set for a showdown with McDonald’s this week as it leads a fight against the firm’s use of antibiotics in its meat production.
LGIM, which manages some £1.2trn in assets, has taken aim at the Big Mac maker’s “overuse” of antibiotics and warned it risks fuelling the threat of global anti-microbial resistance.
The top-20 shareholder in McDonald’s has co-filed a resolution ahead of its shareholder meeting this week calling for the company to align with World Health Organisation guidelines on the “safe use of antibiotics”.
“The World Health Organisation describes AMR as one of the top 10 global public health threats facing humanity today, already accounting for 1.27 million direct deaths in 2019, it is poised to result in a 3.8 per cent loss in global GDP, an impact comparable to that of the 2008 financial crisis,” LGIM warned in a statement last month.
“LGIM believes the scale of action across both the public and private sectors remains insufficient to prevent catastrophic economic and human impacts,” it said.
McDonalds in 2018 pledged to slash the amount of antibiotics used in the production of beef sold in its 40,000 global restaurants, but campaigners say the firm has failed to provide proper updates on progress.
LGIM’s move against McDonald’s has won the backing of Amundi, Europe’s largest pension fund, and Hesta, an Australian ‘superfund’, which together manage assets of more than £2.8 trillion, the Mail on Sunday reported.
However, influential shareholder group ISS struck a blow to the firm earlier this month after it recommended shareholders rebuff LGIM’s move.
The resolution comes amid a ramping up of activity from the asset management giant as it looks to pressure boards for action across areas including climate change, public health, pay and diversity.
Michelle Scrimgeour, chief of LGIM, said last month that the firm had a “responsibility to engage with investee companies on critical issues and drive a corporate agenda that facilitates sustainable markets and economic prosperity”.
McDonald’s said in a proxy statement on its website that it is “working towards the responsible use of antibiotics in our supply chain, including reducing their use and not permitting routine use of medically important antibiotics in food animal production”.
“Our Vision for Antimicrobial Stewardship outlines our approach to responsible antibiotic use, as defined by the World Health Organization, within our supply chain,” the firm said.
LGIM scooped the coveted ESG award at Morning Wire’s annual awards dinner this year.