Table 2 Proposed new ESG + Nutrition metricsa to evaluate the impact of consumer-facing food and beverage sector businesses on consumers’ nutrition and health.

From: The time is ripe for ESG + Nutrition: evidence-based nutrition metrics for Environmental, Social, and Governance (ESG) investing

Domainsb and affiliated metrics

Potential metric definitions

Product portfolio Profile

Healthfulness

overall sales-weighted measure of healthfulness of products, based on either a continuous score or proportion meeting/not meeting certain threshold, using a validated NPSc

Product distribution and equity Profile

Affordability of healthful foods

within company: ratio of price of 1 serving of healthful product to 1 serving unhealthful products (stratified by calorie bands), as defined by NPS

between company: average price of 1 serving of healthful products, as defined by NPS (stratified by calorie bands) across companies

Financial accessibility of healthful foods

across country percentage of sales (PPP-adjusted) in top income quintile, bottom income quintile between countries

- stratified by categories (quintiles) of healthfulness, as defined by NPS

within country: percentage of sales based on relative income (comparison of top vs. bottom quintile) in income-matched units

- stratified by categories (quintiles) of healthfulness, as defined by NPS

Geographic accessibility of healthful foods

within country: percentage of sales by Census track (or equivalent geographic indicator)

- stratified by categories (quintiles) of healthfulness, as defined by NPS

Marketing Profile

Marketing of healthful foods

within company: ratio of percentage marketing spending towards healthful products to unhealthful products, as defined by NPS

- Stratified by race/ethnicity customer segment

between company: percentage of marketing spending towards healthful products, as defined by NPS, compared to competitors

- Stratified by race/ethnicity customer segment

Health claims

percentage of total product portfolio with marketing or package label health claims aligned with latest scientific evidence regarding health benefits of ingredients or nutrients

Responsible marketing policies

adherence score to ICC articles or equivalent for responsible marketing of food and beverages

adherence score to CFBAI standards or equivalent for responsible marketing to children

adherence score to International Code of Marketing of BMS or national equivalent for responsible marketing to mothers

Nutrition-related governance Profile

Corporate nutrition strategy

meet or exceed goals related to product portfolio profile, product distribution and equity profile, and marketing profile metrics

Nutrition education

commitment to (and/or performance on) educating the general public about nutrition and health, in line with the latest evidence

Innovation, research and development

number and percentage of new healthful products launched, as defined by NPS

  1. BMS Breastmilk substitutes; CFBAI Children’s Food and Beverage Advertising Initiative; ESG Environmental, social, and governance; ICC International Chamber of Commerce; NPS Nutrient profiling system; PPP Purchasing power parity.
  2. aMetrics proposed encompass all or the majority of the following attributes identified for strong ESG metrics: (1) measure outputs of the company, including sales or performance with direct impacts on key consumers or community stakeholders; (2) are quantitative in resolution; (3) require minimal data assumptions for measurement; (4) utilize data that is publicly or privately available without substantial back-end effort for aggregation; (5) do not require the reporting entity to take subjective decisions on how to report; (6) measure the appropriate scope, with the flexibility to compare across companies, geographies and sub-sectors; (7) measure the intended construct; and (8) are adaptable as the science evolves over time.
  3. bConsumer-facing food and beverage business can contribute to nutrition and health through four broad domains: (1) through the types of products they sell (e.g., their product portfolios); (2) through the equitability of the distribution (affordability, accessibility) of these products; (3) through their marketing strategies and practices around these products; and (4) through their larger governance and other strategies related to nutrition.
  4. cProduct healthfulness must be measured by an objective, validated NPS. In addition, the use of categorical cut-points versus a standardized continuous scale for healthfulness must be decided upon apriori to evaluate the relative healthfulness of individual food and beverage products, and thereby assess the overall healthfulness of a business’ product portfolio.