Leading a group of members from the Interfaith Center on Corporate Responsibility (ICCR), the Sisters of the Sorrowful Mother will bring their resolution concerning the risks of non-sugar sweeteners in soft drinks to a vote at the May 7th PepsiCo shareholder meeting. Investors have filed a similar resolution at Coca-Cola.
A healthy populace is essential to a strong economy. When people are well, they are better able to fully engage in society. Furthermore, resources saved from healthcare expenditures can be redirected towards initiatives that strengthen our communities and the environment. Consequently, investors with diverse portfolios have a vested interest in establishing safeguards for corporate behavior to prevent business practices from undermining this vital public health foundation.
Food and beverage manufacturers, casual restaurant chains, and retailers are key players in shaping public health outcomes. Many of these companies, while offering convenient and affordable products, also contribute to the rise in diet-related diseases such as obesity, diabetes, and heart disease. In the face of these challenges, SGI members ask these companies to address the links between nutrition insecurity, health disparities, and structural racism. We focus on product reformulation (reducing harmful ingredients and increasing beneficial ingredients), balanced menus, responsible marketing, and transparency around lobbying activities that influence public policy.
The shareholder resolutions at PepsiCo and Coca-Cola request that the companies issue third-party reports on their efforts to assess and mitigate the potential health harms associated with their use of non-sugar sweeteners (NSS). Last year, the resolution at Pepsi obtained 11.5% shareholder support. While there are some adverse forces currently against shareholder resolutions, we hope that the support will rise this year.
Prior to last year’s shareholder meeting, Christina Dorett wrote about the science issues with NSS here. In short, over the past decade, the use of non-sugar sweeteners in diet and nutrition foods has come under increased scrutiny by the public health community. While sales of NSS have ballooned by over 700 percent, a study published in the Journal of Toxicology and Environmental Health in May 2023 found evidence casting doubt on the Food and Drug Administration’s (FDA) assertion that NSS are safe. Moreover, in July 2023, the WHO recommended “against the use of NSSs to control body weight” noting that there “may be potential undesirable effects from long-term use of NSSs, such as an increased risk of type 2 diabetes, cardiovascular diseases, and mortality in adults.”
Without stronger evidence that NSS aren’t linked to health harms over the long term, investors see the continued use of NSSs in Pepsi products and other food and beverage products as creating systemic financial risks given the growing public health burden of managing these diet-related chronic diseases. Conducting the requested third party assessment will bolster shareholder confidence that the companies are adequately managing those risks.
Coca-Cola’s shareholder meeting is April 30th, and Pepsi’s AGMS will be held on Wednesday, May 7th. To see the full texts of these and other proposals visit ICCR’s website here. The exempt solicitation concerning the resolution at Pepsi can be found here.
