The retail giant faced pressure from a consortium of investors, led by responsible investment group ShareAction. Investors cheered a “landmark victory” after Tesco widened the scope of its healthy food promise to cover not just its UK and Ireland operations, but also its Central European business and wholesale supplier Booker Group. The seven investors, representing around £140 billion in assets, had filed what was thought to be the first nutrition-based shareholder resolution in February calling on the retailer to cut its reliance on junk food for sales growth. Tesco responded in March by committing to a “major new programme of reformulation” to improve the health profile of its products by 2025.
Tesco commit to changes to all UK stores amid shareholders junk food row. (PA) Tesco has pledged to boost sales of healthy foods and drink across its entire retail empire amid calls to help tackle the UK’s obesity crisis. The retail giant faced pressure from a consortium of investors, led by responsible investment group ShareAction. Investors cheered a “landmark victory” after Tesco widened the scope of its healthy food promise to cover not just its UK and Ireland operations, but also its Central European business and wholesale supplier Booker Group. The seven investors, representing around £140 billion in assets, had filed what was thought to be the first nutrition-based shareholder resolution in February calling on the retailer to cut its reliance on junk food for sales growth.
Tesco commit to changes to all UK stores amid shareholders junk food row. (PA) Tesco has pledged to boost sales of healthy foods and drink across its entire retail empire amid calls to help tackle the UK’s obesity crisis. The retail giant faced pressure from a consortium of investors, led by responsible investment group ShareAction. Investors cheered a “landmark victory” after Tesco widened the scope of its healthy food promise to cover not just its UK and Ireland operations, but also its Central European business and wholesale supplier Booker Group. The seven investors, representing around £140 billion in assets, had filed what was thought to be the first nutrition-based shareholder resolution in February calling on the retailer to cut its reliance on junk food for sales growth.
The investor group heaped pressure on the UK’s biggest supermarket grocer, calling on Tesco to expand its commitments, keeping its resolution on the table for the retailer’s summer annual general meeting. However, the resolution has now been withdrawn hanks to the latest commitments from the supermarket giant and said they will engage with Tesco over the next two years as the retailer puts them in place. Louisa Hodge, engagement manager at ShareAction, added: “By filing a shareholder resolution, our investor coalition sent a strong message to Tesco and to other supermarkets that shifting sales toward healthier options is important.