WILMINGTON, Del., March 3, 2021 /PRNewswire/ -- The Shareholder
Commons announced today that Yum! Brands (NYSE: YUM, the "Company")
has agreed to provide comprehensive reporting on the systemic
effects of the use of antibiotics in its supply chain by the end of
2021. Paul Rissman, a long-time
shareholder of the Company, worked with The Shareholder Commons, a
non-profit organization that seeks to shift the paradigm of
investor thinking towards a systems-first approach, to submit a
shareholder proposal earlier in the year. Rissman and The
Shareholder Commons have now withdrawn their proposal on the same
matter in recognition of the agreement.
The agreement with The Shareholder Commons requires the Company
to:
- incorporate a study of the system-wide costs of antimicrobial
resistance (AMR) into its public sustainability reporting.
- disclose its findings regarding how antibiotic use in animal
husbandry threatens global health and well-being, as well as the
global economy and diversified shareholder interests.
- discuss an optimal, global scenario for the food industry to
eliminate or internalize AMR costs and address competitive concerns
that would make progress more difficult without such an
approach.
- describe how its policies and procedures—including those
covering lobbying, political expenditures, and other forms of
political influence—affect the realization of the global
scenario.
"Antimicrobial resistance is a complex challenge which
requires action by governments, NGOs, and corporations," said
Professor Dame Sally Davies, Master
of Trinity College, Cambridge University. "We are all happy to see Yum!
take this important step and hope to see more companies begin to
align their AMR strategies explicitly with the needs of the global
health system and planet."
"While U.S. securities laws require companies to disclose
matters that are material to their own financial performance, there
is no requirement that companies report their impacts on the
economy or shareholders who hold diversified portfolios that depend
on broad economic performance," said Frederick Alexander, CEO of The Shareholder
Commons. "We are excited to see Yum! become the first public
company to agree to disclose its impact on the broad economy and
diversified shareholders."
AMR threatens global health by reducing antimicrobial drugs'
effectiveness. If the current trend continues, humanity will
experience a reversal of the public-health gains of the past
century and the economic growth, development, and poverty reduction
these gains enabled. According to studies by the World Bank and the
UK government, AMR could cause up to 10 million deaths per year by
2050. In addition to this staggering loss of life, AMR may decrease
global GDP 3% by 2030, and almost 4% by 2050, amounting to economic
losses by 2050 of $54 trillion in
today's dollars.
"Yum! looks forward to further collaboration on this important
issue," said Jon Hixson, Yum! Chief
Sustainability Officer and Vice President of Government Affairs.
"We remain committed to playing a positive role when it comes to
the responsible and judicious use of antimicrobials and decreasing
antimicrobial resistance."
"I am a long-time investor in Yum!, but I also have diversified
holdings, and so do my children. More importantly, we all live on
the same planet. I'm thrilled to see that Yum! recognizes that its
practices affect everyone, and not just its shareholders," said the
proponent, Paul Rissman, co-founder
of Rights CoLab.
The Shareholder Commons is supporting multiple proponents in
filing shareholder resolutions with a beta-activist lens, which
involves looking for opportunities for shareholder activism that
can influence corporate behavior with respect to social and
environmental systems that affect the economy as a whole. The full
list of current shareholder resolutions and votes is available at
https://theshareholdercommons.com/beta-activism/.
About the Shareholder Commons
The Shareholder Commons is a non-profit organization that seeks
to shift the paradigm of investor thinking away from a narrow and
harmful focus on individual company value towards a systems-first
approach to investing that better serves beneficiaries. Learn
more at https://theshareholdercommons.com/.
Media Contact:
Dmitriy Ioselevich
17 Communications
dmitriy@17c.org
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SOURCE The Shareholder Commons