Restaurant Antibiotics Engagement Phase 2
Global awareness around the need to address inappropriate antimicrobial use in animal agriculture is increasing. To support the adoption and implementation of robust company-wide antibiotic policies in the animal protein supply chains of 12 quick-service restaurants, FAIRR is pleased to launch phase 2 of its Restaurant Antibiotics engagement.
Sign-on to Phase 2Engagement Overview
Background
Between now and 2050, antimicrobial resistance (AMR) could result in an additional 39 million deaths and a 3.8% global decline in annual GDP, presenting a substantial threat to both global health and economic stability. Mitigating AMR risk will require a comprehensive approach, addressing the misuse and overuse of antimicrobials across humans, animals and the environment. Approximately two-thirds of antibiotics sold are used in animal agriculture, highlighting the importance of reducing inappropriate antimicrobial use in this sector.
As large purchasers of animal protein, quick-service restaurants (QSRs) are well-positioned to encourage responsible antibiotic use practices at the farm level.
This engagement aims to support the adoption and implementation of robust company-wide antibiotic policies in the supply chains of six key animal proteins sourced by major North American QSRs. Any such antibiotic policies would aim to reduce the use of medically important antibiotics over time in alignment with guidelines from the WHO.
The Restaurant Antibiotics engagement asks companies to:
(i) Demonstrate sufficient rigour and scope of existing policies in alignment with WHO recommendations
(ii) Develop antibiotics policies to cover all key proteins
(iii) Provide evidence of implementation through target setting and auditing
(iv) Ensure stewardship and lobbying activities align with the company’s stated position on antibiotic use
Selected Companies
This engagement focuses on twelve of the largest North American QSR companies, all of which operate internationally.
Material Risks
Antimicrobial resistance (AMR) is a systemic risk to which almost 10% of global equity markets, particularly in developed markets, are estimated to be exposed. By 2035, resistant infections could lower workforce participation and productivity, leading to losses of US$443 billion per year.
The large volumes of antimicrobials used in the agri-food system make it both a driver of AMR and highly vulnerable to its impacts. Companies operating within this system could face significant risks including reputational risk, change in consumer demand, and supply chain volatility from increased production cost and product losses.
Investors Signed On
Phase 2 of the engagement is now open for sign-on for FAIRR Investor members.
Phase 1 of the engagement was supported by 71 investors, representing US$15.2 trillion in combined assets.
