Investor Briefings and Alerts

Given that farm animal welfare remains a relatively immature business and investment issue, the BBFAW publishes briefings and alerts on related topics covering regulatory and policy developments and research findings.

 

Investor Use of the Benchmark (2015)

Our 2015 survey of investors reveals that the Business Benchmark is being used by investors to:

  • Assess the business risks and opportunities of farm animal welfare for companies.
  • Provide insights into how companies are identifying and managing risks in their supply chains. One respondent to our survey commented that farm animal welfare can act as a proxy indicator for the overall strength of a company's supply chain management, where poor policies and practices can indicate a higher level of supply chain risk, or indicate that a company is not well-positioned to take advantage of opportunities associated with higher welfare products.
  • Cross-check investors’ own assessments of companies’ sustainability approaches and strategies. It is, however, interesting that a number of investors do analyse company performance on farm animal welfare but do not use the Benchmark in this process. For example, one respondent to our survey commented that they do not use any third party research or indices such as the Benchmark in their investment research, as they prefer to conduct their own research on ESG issues.
  • Understand the evolution of farm animal welfare as an investment subject and as a corporate management priority.
  • Communicate with internal investment research teams on the investment relevance of farm animal welfare issues.

In relation to engagement, the Benchmark has been used to:

  • Prioritise companies for engagement. Investors have used the Benchmark both to identify laggards (i.e. poor performers) and leaders (to understand what has enabled these companies to become leaders).
  • Inform investors’ engagement with companies, whether on the specific subject of farm animal welfare or as part of wider discussions on sustainability strategy and governance. In 2015, BBFAW produced a short guide on how investors could use the Benchmark in their engagement with companies.
  • Underpin the collaborative engagement on farm animal welfare as described in Box 1.
  • Inform questions at company AGMs.