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Ecumenical Advocacy Days April 6, 2013

Ecumenical Advocacy Days April 6, 2013. Faith-based Investor Coalition. ICCR is a global coalition of 300 religious investors from the Catholic, Jewish and Protestant communities representing over $100 billion in assets under management.

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Ecumenical Advocacy Days April 6, 2013

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  1. Ecumenical Advocacy Days April 6, 2013

  2. Faith-based Investor Coalition ICCR is a global coalition of 300 religious investors from the Catholic, Jewish and Protestant communities representing over $100 billion in assets under management. ICCR has over 50 associate members--socially responsible investment firms, public pension funds, union pension funds, foundations and universities. ICCR members act in coalition as shareholders in the world’s largest corporations to promote more just and sustainable business practices. http://www.iccr.org

  3. How We Work • • DIALOGUES • RESOLUTIONS • • CSR TOOLS

  4. Human Rights Trafficking and Slavery Food Safety and Sustainability Investment Strategies Non Therapeutic Use of Antibiotics GMOs Environmental Health Fracking Toxic Chemicals in Consumer Products Water Safety and Sustainability Sustainable Use Contamination Financial Services Predatory Lending Risk Management Financial Policy Reform Global and Domestic Health Access and Affordability Health Care Policy Reform

  5. ICCR Resources

  6. Obesity Trends Among U.S. AdultsBRFSS 1991 Source: Behavioral Risk Factor Surveillance System, CDC

  7. Obesity Trends Among U.S. AdultsBRFSS, 1993 Source: Behavioral Risk Factor Surveillance System, CDC

  8. Obesity Trends Among U.S. AdultsBRFSS, 1995 Source: Behavioral Risk Factor Surveillance System, CDC

  9. Obesity Trends Among U.S. AdultsBRFSS, 1997 Source: Behavioral Risk Factor Surveillance System, CDC

  10. Obesity Trends Among U.S. AdultsBRFSS, 1999 Source: Behavioral Risk Factor Surveillance System, CDC

  11. Obesity Trends Among U.S. AdultsBRFSS, 2001 Source: Behavioral Risk Factor Surveillance System, CDC

  12. Obesity Trends Among U.S. AdultsBRFSS, 2003 No Data <10% 10%–14% 15%–19% 20%-24% >25% Source: Behavioral Risk Factor Surveillance System, CDC

  13. Obesity Trends Among U.S. AdultsBRFSS, 2005 No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30% Source: Behavioral Risk Factor Surveillance System, CDC

  14. Obesity Trends Among U.S. AdultsBRFSS, 2007 No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30% Source: Behavioral Risk Factor Surveillance System, CDC

  15. Obesity Trends Among U.S. AdultsBRFSS, 2009 No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30% Source: Behavioral Risk Factor Surveillance System, CDC

  16. Obesity Trends Among U.S. AdultsBRFSS, 2010 No Data <10% 10%–14% 15%–19% 20%–24% 25%–29% ≥30% Source: Behavioral Risk Factor Surveillance System, CDC

  17. Globalization and the agriculture-food-health nexus

  18. “ Obesity Fear Frenzy Grips Food Industry” “Why Coke's Creative Chief Esther Lee Isn't Alone in Fearing FTC, Critics”

  19. Company Responses: Voluntary Initiatives Children’s Food and Beverage Advertising Initiative Facts Up Front Partnership for Healthy America Healthy Weight Commitment Foundation Let’s Move

  20. Assesses 25 of the world’s largest food and beverage companies on their nutrition-related commitments, practices and performance globally.

  21. OBJECTIVES OF SHAREHOLDER ADVOCACY: Develop/implement a policy to address the company’s nutritional impact on global under nutrition and obesity. Strengthen self-regulatory initiatives around marketing to children. Make nutritional information readily accessible/understandable through labeling. Make healthier, more affordable products. Disclose all lobbying efforts.

  22. GMOs: The Problem • Weak regulatory system in the US. • No long-term studies on health /environmental effects. • Unknown allergenic effects. • International opposition. • Corporate power over local and indigenous growers. • No labeling to protect consumers.

  23. GMOs: ICCR actions • Letters to companies that gave to the campaign to oppose Proposition 37. • Shareholder resolutions calling for labeling. - Abbott, ConAgra, Kraft, Pepsi • Shareholder resolutions calling for disclosure of risk. - Dow, Dupont, Monsanto

  24. ANTIBIOTICS…IN YOUR MEAT?

  25. What’s the big deal? Public health • Dwindling antibiotic viability & dry pipeline • 80% of antibiotics in US go to animals • “Routine use” for prevention/growth • CAFO Pollution pathogenic manure & untreated water • Increasing resistant bacteria in humans • 7 of 10 crucial antibiotics used for animals

  26. Example of Prevalence • 395 pork samples from a total of 36 stores in Iowa, Minnesota, and New Jersey. • S. aureus—a bacteria that can cause serious human infections of the bloodstream, skin, lungs and other organs—was isolated from 256 samples (64.8 %)and of those, 26 pork samples (6.6% /total) were found to contain MRSA. -University of Iowa College of Public Health report

  27. “The industrialization of pig and poultry production could lead to a higher risk of disease transmission from animals to humans.” UN FAO, 2007 • “Industrial farms are super-incubators for viruses.” Pew Commission on Animal Farm Production • The American Public Health Association, largest association of public health specialists, called for a moratorium on factory farms 5 years ago.

  28. Snapshot: Tyson Fines • 2001 $7.3m fine Tulsa, OK polluting city drinking water • 2003 $7.5m fine untreated waste into tributary of Lamine River, MO • 2005 OK Polluted surface, ground, drinking water Illinois River Water shed from run off poultry litter- still in court • 2009 $2m civil penalty and $4.1m fine in Missouri River ,NE

  29. Ask of Meat Companies: • Phasing out routine use of feeds containing antibiotics • Implement practices that do not require routine administration of antibiotics to prevent/control disease • Annually publish data on types/quantities of antibiotics in feed

  30. Ask of Pharmaceutical Companies: • Develop a public statement on anti-microbial resistance • Publically explain their commitment to human and animal health • Review their portfolio of products & conflicts of interest

  31. Ask of restaurants/retailers: • Policies on purchasing meat and poultry produced with antibiotics and how compliance is assured • Education of consumers about meat and poultry purchasing policies • Provide % of meat purchased that are produced without any antibiotics; or includes antibiotics only for treatment and control of disease; or if employs routine use

  32. Engagements with Corporations

  33. Success! • Merck’s policy • Meat industry’s deadlock • Increased demand • Rise of MRSA, CRE and other ‘super-bugs’ …and Challenges

  34. EXCESSIVE SPECULATION IN FOOD COMMODITIES

  35. Goals: To understand • What is this issue? • Why is this a focus issue? • Who it impacts? • How we see a path for change.

  36. Commodities • For Farmers : • risk mitigation • determining price • Benefits of Futures • Farmers = hedge against decreasing price • Commodity Buyer (General Mills) = lock in good price today for future delivery • Speculators = profit from increase/decrease in price Risk Profit

  37. Commodities • The Glass Steagall Act of 1933 • Banks cannot use federally insured $ or loans for risky speculative trades • AKA separated commercial and investment banking

  38. The 2000’s • Commodities Futures Modernization Act • Goldman Sachs Index and other funds are marketed to large institutions • Increased investments from $13 billion in 2003 to $450 billion in Q4 2011. • Crisis (housing) and Flood into Commodities • World Bank Outlook 304% increase in commodities funds.

  39. Commodities Futures Modernization Act • Removed oversight • Speculators exempted from gambling laws • Weakened the CFTC • New over-the-counter derivatives in a variety of markets, (sub-prime housing) • Permitted all investors to trade without any position limits, and minimal disclosure requirements

  40. SPECULATORS • Take No Delivery

  41. Speculative Bubbles • Harm consumers • Jeopardize the ability of hedgers to guard against price risks • Increased hedging costs • Diminishes confidence in commodity prices fairly reflecting actual supply and demand factors.

  42. Why too much institutional money is bad. • Large institutions = passive investments. • Rolling cost, food expiration. • Buyers of index funds base their buying decisions on asset allocation, instead of supply and demand of commodities. • Throw prices markets natural balance, too much betting on future (fictional) prices.

  43. But you said, “FUTURES”. • Futures are standardize contracts. • Today many are made via funds. • Futures prices directly affect spot prices. • Many large purchases of commodities, both in the U.S. and around the world, are made using the nearest-month’s futures price as the basis.

  44. Why this matters? • Excessive speculation in food futures = volatile prices of today’s food.

  45. 2008: Hunger across the globe • Price of food skyrockets • Food commodities volatility • 1 million are pushed into hunger • 2 billion spend over 50% of income on sustenance • Riots in over 30 countries based on the price of food

  46. What we need: • Meaningful position limits and margin requirements on speculators (collateral) • Mandatory clearing and data reporting requirements • Prohibitions on dangerous proprietary trading activities

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