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Issue Brief: Animal Welfare
Introduction
Calvert avoids companies that conduct unnecessary and inhumane animal testing. Calvert requires companies in the food industry to treat animals with care and avoid unnecessary distress. Another concern is pet stores, some of which have faced allegations of neglect or worse. Calvert holds such companies to stringent standards, and also avoids companies that present negative or violent images in the media.
Calvert's Approach
Calvert emphasizes three areas in the animal welfare issue area: testing, husbandry, and entertainment exploitation.
Animal testing: Calvert prefers that companies using animals in consumer product safety testing disclose detailed data about their use of animals and that they support research on alternatives to animal testing. Calvert asks such companies to follow the "3Rs" of animal testing:
- Replacement: replace animal testing with computer models or other methods that do not disturb or kill animals;
- Reduction: reduce the number of animals used to as few as possible; and
- Refinement: minimize animal distress and suffering in the testing process.
Calvert's analysts contact company management for information about the types of tests they conduct, the animals used, and the possibility of employing alternatives. When a company contracts testing out to independent laboratories, Calvert contacts the labs to learn about their practices.
Animal husbandry: For companies in the food industry to meet Calvert's criteria, they must adhere to the five basic freedoms that farm animals deserve:
- freedom from hunger and thirst;
- freedom from discomfort;
- freedom from pain, injury, and disease;
- freedom to express normal behavior; and
- freedom from fear and distress.
To monitor company practices in this area, Calvert analysts collect company data, and gather information from non-profit organizations, the media, and government sources. When possible, Calvert relies on third-party monitoring or accreditation.
Media, entertainment, and retail pets: Calvert avoids companies that exploit animals for entertainment and have a poor record of caring for animals. This involves monitoring the use of violent images in the media and tracking animal care by companies that use animals for entertainment. Calvert examines how pet stores care for animals, and advocates that these stores promote animal adoption over purchase of pets.
Know What You Own®
Calvert's Know What You Own® screening tool for animal welfare assesses whether securities drawn from a universe of the largest 1000 US companies meet Calvert's animal welfare criteria. Companies that fail Calvert's animal welfare criteria do so because they:
- Conduct unnecessary or inhumane tests,
- Include violent images of animal abuse in the media, exploit animals for entertainment, or encourage inhumane practices, or
- Provide inadequate care for animals in pet stores, factory farms, research laboratories, and other environments.
Criteria in Practice
Few food companies meet Calvert's demanding animal husbandry requirements. However, Whole Foods Market, Inc. (WFMI), the world's leading natural foods chain, is the absolute industry leader on animal welfare. The company has instituted strict companywide animal welfare policies, supplier standards, and mandatory annual audits, and created a foundation to benefit farm animals. Farm animals raised for Whole Foods' meat sales must have access to quality care, including range and housing that allow them to behave in ways that are natural for their species. The company's slaughterhouse standards must meet the requirements of a stringent rating system developed by renowned animal welfare expert Dr. Temple Grandin.
Advocacy
Calvert continues to seek disclosure of animal welfare policies and programs, and to pressure the food industry to adopt more humane welfare and slaughter practices and policies. We work closely with key organizations such as the Humane Society of the United States (HSUS) and People for the Ethical Treatment of Animals (PETA).
Early in 2006 Calvert co-filed a shareholder resolution with PETA targeting restaurant operator Brinker International (EAT), the parent company of such popular restaurants as Chili's Grill & Bar, Romano's Macaroni Grill, On the Border Mexican Grill & Cantina, and Maggiano's Little Italy. The resolution asked the company to prepare a study examining the potential for poultry suppliers to adopt controlled atmosphere killing methods for chicken slaughter, which uses lethal gas and is more humane than traditional slaughter methods. Brinker makes no mention of animal welfare policies or standards on its website or in other company materials, although its competitors have started developing humane slaughter policies for suppliers to follow. These companies recognize that addressing this issue through enlightened policy may create a competitive advantage for them, helping to improve sales and reputation.
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