Responding to a shareholder resolution co-ordinated by ShareAction, Tesco has set a target to increase the proportion of sales from healthier products to 65 per cent by 2025.1
The supermarket has committed to publish a strategy to achieve this goal and to report on its progress annually.
Owning 27 per cent of the British grocery market, Tesco has huge influence on the nation’s health and its announcement is a significant achievement for shareholder engagement on health issues. ShareAction’s resolution was the first health-based resolution to be filed at a UK-listed company, reflecting rising investor concerns with companies’ impact on health.
ShareAction said the investor group looks forward to continuing engagement with Tesco to address remaining questions about the scope of the supermarket’s plans and the methodology it will use to categorise healthier products.
Jessica Attard, Head of Health at ShareAction, said:
“Today’s news demonstrates the power of investor engagement. Tesco’s new plans are an important recognition of the role supermarkets play in shaping our diets, at a time when our health has never been more critical. We look forward to continuing to work with Tesco, and to seeing other supermarkets and food manufacturers step up to this challenge.”
1ShareAction. Tesco sets health target in response to shareholder challenge. 2021.