FTSE Group (“FTSE”), the award winning global index provider is pleased to announce a new collaborative initiative to commission external verification assessments of company marketing practices in relation to ‘Breast Milk Substitute’ (BMS) products.
This controversial subject has attracted significant media and NGO attention over many years due to the inappropriate marketing of infant formula and the resulting health impact on infants. Companies that operate in the BMS sector will be required to certify that marketing standards are being followed in order to secure their on-going inclusion in the world’s leading responsible investment index, FTSE4Good. An independent and external assessor will review the evidence of this. It is expected that the initiative will result in improving the current low levels of trust that exist between the industry and non-governmental groups.
The verification assessment will be commissioned in collaboration and consultation with a number of organisations including the Global Alliance for Improved Nutrition (GAIN), the Church of England’s Ethical Investment Advisory Group (EIAG), the Methodist Church, and the United Reformed Church. USAID is also discussing collaboration with FTSE on this important work, and PricewaterhouseCoopers has been appointed as the assessor for the first cycle.
In September 2010, the FTSE4Good Policy Committee approved final revisions to the FTSE4Good Breast Milk Substitutes marketing inclusion criteria. These set requirements for company policies which cover lobbying, management systems, and reporting. The criteria build on the WHO International Code of Marketing of Breast-Milk Substitutes and subsequent World Health Assembly (WHA) resolutions (‘The Code’). The revised criteria were drafted by FTSE and updated based on the outcomes of a consultation exercise with companies, investors and NGOs, including both UNICEF UK and Save the Children.
Once a company meets these criteria and is included in the index it will be subject to the verification assessment process. The findings will help to assess whether the companies have well-functioning policy compliance, management and monitoring systems.
FTSE is a corporate partner of UNICEF, and David Bull, Executive Director of UNICEF UK welcomed this initiative stating “The revised criteria and FTSE’s work in encouraging and supporting companies to comply with them has the potential to make a major contribution to the efforts of WHO, UNICEF and other organisations involved in the protection, promotion and support of breastfeeding. UNICEF looks forward to following this initiative closely as it seeks to support and strengthen progress towards full code compliance.”
Commenting on this, Mark Makepeace, Chief Executive, FTSE Group said, “Securing good infant nutrition, including protecting breastfeeding, is a fundamental component in improving the health of babies and infants around the world. This initiative supports and encourages leading companies to demonstrate responsible business practices in this challenging area and further builds on the comprehensive environmental and social inclusion criteria for the FTSE4Good Index Series.”
“GAIN believes that all sectors have a role to play in improving access by low income populations to good nutrition”, said Marc Van Ameringen Executive Director of the Global Alliance for Improved Nutrition. “GAIN supports a range of mechanisms that reinforce responsible practices and positive action by the private sector to respect international ethical standards and we believe these verification assessments will catalyse significant improvements.”
Richard Nunn, Convenor of the United Reformed Church Investment Committee, added “The URC is pleased to endorse this engagement initiative. It will promote good practice through independent verification assessments which will encourage best-in-class behaviour in relation to manufacture and marketing of child nutrition products.”
For more information on the FTSE4Good Index Series please visit:
http://www.ftse.com/Indices/FTSE4Good_Index_Series/index.jsp