Nordea comments NGO report on investments in the food industry
On December 20th, the NGOs Fair Finance Guide Sweden and World Animal Protection Sweden published a report on the Swedish banks (incl. Nordea) and public pension funds investments in the six largest chicken and pork production companies globally: Tyson Foods, WH Group, JBS, New Hope Group, BRF and Danish Crown.
Outdated figures
The information in the report is out of date. Nordea has sold a majority, now a total of 94 percent of the holdings, in the companies mentioned in the report. This was done last summer, before Nordea was contacted by Fair Finance Guide.
Not in any of Nordea’s article 9 funds
In the report it is stated that some investments can be found in one bank’s article 9 funds, considered to be the most sustainable funds. This is not the case for Nordea. Non of the investments can be found in Nordea’s article 9 funds.
Nordea has the leading disclosure of company-specific demands and targets
Nordea is aware of the many challenges within this sector. It is therefore a key priority for Nordea to engage and be a responsible owner in order to drive positive change and create long-term value, both for society and the company. As the report mentions, Nordea is the only bank that conducts own direct dialogue with the companies and Nordea is considered to have the best disclosure of company-specific demands and targets. As owner of more than 4,000 companies, the climate issue together with biodiversity, human rights and good governance are the most prioritized issues that we pursue within the framework of our active ownership, but sustainable animal husbandry is also an important issue where we work to influence the companies we invest in.
Examples of the engagements with Tyson Foods
Among other things, Nordea has engaged with Tyson Food on climate and biodiversity issues. As part of our Net Zero Asset Manager commitments, Nordea is engaging with Tyson Food on its climate transition plans. The company has been informed that to remain investable in medium and long term, the company needs show progress on the following criteria:
• A net-zero ambition by 2050
• Short-, medium- and long-term GHG reduction targets aligned with 1.5°C
• Good performance against targets
• Comprehensive GHG emissions disclosure, including material scope 3 emissions
• A comprehensive decarbonization strategy with quantified mitigation outcomes
• Aligned capital expenditure
• Wastewater treatment
• Deforestation
• Antimicrobial resistance (AMR)
In 2023, Nordea voted for the shareholder proposal at Tyson Foods AGM, which requested the company to comply with WHO Guidelines on Antimicrobial Use Throughout Supply Chains. Tyson Foods has made progress in eliminating antibiotics used in its chickens, however its cattle and swine policies deviate from the WHO Guidelines, which recommend that “farmers and the food industry stop using antibiotics routinely to promote growth and prevent disease in healthy animals”.
Nordea is also collaborating with other investors to increase our leverage on the company. Nordea participated in the CDP Transition Plan Campaign on Tyson Foods which encourages companies to develop and disclose climate transition plans throughout their value chains.
For an overview of other investor initiatives (e.g. addressing deforestation and climate change) which Nordea participates in please see our Responsible Investment Annual Report.