Press Release

First ever framework for food companies to address consumer health and obesity

A new report has been released today setting out a framework for an effective corporate response to the global crisis of obesity and consumer health. The report, the first of its kind, prepared by Insight Investment and the International Business Leaders Forum (IBLF), aims to spur food companies to go further in addressing consumer health issues so as to meet the needs of their customers while at the same time protecting shareholder value.

Despite growing awareness in the UK and other developed countries of the seriousness of obesity as a long-term health issue, no proposals have been made until now about how companies might respond comprehensively. IBLF and Insight are concerned that companies risk losing sales and consumers’ trust if they do not help them make healthier eating and lifestyle choices. Very few companies seem to have thought through the potential impact on their businesses of emerging consumer health trends nor to have considered fully how they might capitalise on this market shift, while creating positive social impact.

The new report, ‘A proposed framework for the corporate response to addressing consumer health and obesity’, provides a plan of action for companies. Using good practice examples from 14 of the world's largest food companies, the Insight / IBLF framework covers everything from how companies should act on strategy and governance to marketing policies, portion sizing, salt and sugar content and employee and community sports programmes.

IBLF and Insight are inviting stakeholders, including companies, NGOs and consumer organisations, to review the framework at consultations or to provide their comments by 31 August.

Rachel Crossley, director, investor responsibility at Insight Investment, said, “While companies are increasingly recognising the importance and value of acting responsibly, many in the food sector appear blind to how critical consumer health issues are likely to be to their future business success. Few of the world’s largest food companies appear to have a clear strategy or set of policies to guide their businesses on promoting healthier eating and more active lifestyles. We would like to see companies on the front foot, taking the lead in putting in place best practice policies and initiatives across their businesses to avoid the need for regulatory intervention and a customer backlash. Were companies to adopt this framework, which places obesity and consumer health at the heart of the management agenda, we believe they would be well on their way to making a solid contribution to solving consumer health problems while protecting and enhancing shareholder value.”

Olive Boles, Director of IBLF’s HEAL (Healthy Eating & Active Living) Global Partnership programme said, "Consumer health and obesity are crucial public health issues which demand further attention and resources. We are committed to working with companies to develop responsible and effective responses to ensure that the corporate sector is part of the solution to these problems. We hope that this work will go some way towards encouraging the food sector to lead industry as a responsible partner in health issues related to diet and physical activity.”

-ends-

For further information please contact:

Insight Investment press office

Tel: 020 7321 1358

International Business Leaders Forum press office

Claire Kilvert, Communications and Media Manager, claire.kilvert@iblf.org,

Tel: 020 7467 3652

Notes to editors

Insight Investment

Insight Investment Management (Global) Limited is the asset manager of HBOS plc. Registered in England and Wales. Registered office 33 Old Broad Street, London EC2N 1HZ. Registered no. 827982. Authorised and regulated by the Financial Services Authority.

Insight Investment manages funds for institutional and retail clients across the full range of asset types – equities, bonds, property, derivatives and private equity. Insight’s assets under management as at 31 March 2006 totalled £95.5bn.
Insight Investment’s web address is www.insightinvestment.com

International Business Leaders Forum

The International Business Leaders Forum is an international not-for-profit organisation, supported by more than 70 of the world’s leading companies. Its mission is to promote responsible business leadership and partnerships for social, economic and environmentally sustainable international development, particularly in new and emerging market economies.www.iblf.org

The HEAL (Healthy Eating & Active Living) Global Partnership is an IBLF programme that aims to mobilise business as a responsible partner for health and wellness in the marketplace, workplace and community. HEAL is a multi-sector, international initiative that promotes a framework for action aligned to corporate interests and competencies. It profiles and shares good corporate health and wellness practices, and facilitates active engagement in partnership initiatives designed to help tackle the growing epidemic of obesity-related illnesses that can make systemic impact at national and international levels.
www.iblf.org/heal