MINNEAPOLIS, Minn. — Aug. 21, 2015 — Fifteen publicly traded food companies received letters from 60 institutional investors who want more information regarding how the companies manage clean water risks, according to a press release.
A report by Ceres titled "Feeding ourselves thirsty: How the food sector is managing global water risks" initiated the letters, noted the article.
The investors have $1.9 trillion in combined assets under management, reported the article. "They believe that water risk management is critical to the financial oversight of food and beverage companies."
The report claimed companies need better oversight and understanding of water risks as drought-stricken states continue to face scarcity challenges, shared the article. Relationships with water and agricultural supply chains can help them consider these risks.
Hormel Foods Corp. is one of the 60 companies that received a letter, noted the article. It scored 11/100 on the report, a middle score for the meat producers group. Hormel was asked to reduce water use by 10 percent by 2020 and be more transparent about water risks.
Hormel said in the article that it will continue transparency efforts and disclose its answers to the annual Carbon Disclosure Project’s Water Questionnaire, stated the article.
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