This is how we evaluate the Globalance Footprint with regard to nutrition:
A negative Footprint causes
- Undernutrition and hunger
- Declining agricultural productivity
- Scarcity of agricultural raw materials
- Harmful use of fertilisers and pesticides
- Lack of transparency in the commodity markets coupled with speculative
- Consumption of too much sugar, salt and fat
- Diseases as a result of overweight (e.g. diabetes
A positive Footprint fosters
- Sustainable agricultural production
- Protection of natural resources
- Properly functioning markets for all players in the value chain (incl. small farmers)
- Supply to developing and emerging nations
- Foodstuffs with fewer additives
- Health of the populace
Your Footprint Map for the topic
- Colours indicate the Footprint-Scores
- Field sizes indicate proportion of invested capital
The three best investments
The three investments with the best Footprint for this theme are:
Global Context: Progress and challenges in the fight against hunger
Global hunger has been showing a decreasing trend over the last two decades. Nevertheless, food manufacturers still have a lot of potential to contribute to further improvements on all aspects of nutrition.
What this chart tells us: Improving global hunger situation but challenges remain
The graph shows the evolution of the World
Hunger Index (WHI) between 1990 and 2014. The International Food Policy
Research Institute (IFPRI) publishes this index on an annual basis along with a
report. The evolution of the index shows a decreasing intensity of world hunger
within the last quarter of a century in most regions. The years since 2005 have
been the most progressive in this regard: the WHI in developing countries
dropped by 3,4 points. But the IFPRI also stresses continuing challenges: in
spite of the progress made, the Index Value for 2014 remains problematic and
gives rise to concern. Additionally, global average values hide dramatic
differences between individual regions and countries.
Remittances, which have globally become three times larger than official development assistance, have had significant impacts on poverty and food security.
The State of Food Insecurity in the World, FAO (2013)
Challenge: Malnutrition and Hidden Hunger
Most malnourished people live in developing countries. Estimates point towards more than 800 million people affected worldwide. More than twice as many people are furthermore estimated to suffer from micronutrition deficit, also known as hidden hunger. Although the victims do not suffer from an actual feeling of hunger, they suffer from nutrient deficiency.
Hidden hunger is a form of undernutrition that occurs when intake or absorption of vitamins and minerals is too low to sustain good health and development in children and normal physical and mental function in adults. In contrast to malnutrition, hidden hunger is also present in industrialized countries and often manifests itself in obesity of poorer population segments.
Investment-relevance: Healthy food as an opportunity
Food manufacturers strongly influence the composition of commercial food products. Many of these products are rich in energy (calories) but poor in micronutrients. Health costs associated with unhealthy nutrition and food habits are extremely high in many industrialized nations.
Creating a portfolio of healthy food products will pay off for manufacturers in a global trend to healthy living. Companies acting today will furthermore be much more resilient to future government legislation aimed at the solution of national health problems. The result is a long term competitive advantage that will impact a firm’s operational performance as well as its stock price.
Between 1990 and 2012 the amount of people suffering from malnutrition declined by 17%.
Approximately 850 million people still suffer from malnutrition (chronic lack of calories).
33% of the global food production (1.3 billion tonnes) is wasted every year.
Relevant sources of guidance for the Globalance Footprint
In the identification of benchmarks and trends, Globalance Bank considers the UN Food and Agriculture Organization (FAO), the UN Environment Programme (UNEP) and the International Food Policy Research Institute (IFPRI) among other sources. The Access to Nutrition Index furthermore helps us investigate issues at a company level.