Supermarket Group Tesco (DSCOL) has agreed to increase healthy food preferences in operations in Europe and the UK, satisfying investors who have filed a key partner resolution to force this issue.
Tesco, an alliance of aspiring investors, has called on Britain’s largest supermarket group to set targets for selling more healthy food, withdrawing their shareholding resolution on Wednesday after the company pledged.
Investment Group SharesActions consolidated with institutional investors Robeco, Joe Humphro and Guys and St. Thomas Health Charity and 101 individual Tesco shareholders to file the resolution in February. read more
The move marks the first health-based partner resolution filed in a UK-listed company.
Tesco, which initially accounted for 27% of the UK grocery market, has promised to increase sales of healthy products by 58% to 65% of total sales in its UK and Irish stores by 2025.
ShareAction, however, put its resolution on the table, encouraging Tesco to take similar steps with Booker Wholesale subsidiaries that supply its Central European stores and supermarket chains Budgens and Landis.
Tesco has now agreed to do this and has withdrawn the share action resolution.
The two-year engagement process between investors in the Tesco, ShareAction and Healthy Markets Alliance has now been agreed, with Tesco implementing new obligations involving revenues of 52 52 billion ($ 72 billion).
“Investors recognize the importance of health,” said Louisa Hodge, engagement manager at ShareAction.
“By filing a partner resolution, our investor alliance sent a strong message to Tesco and other supermarkets that it is important to turn sales into healthier options.”
Tesco said it shares the same goal of ShareAction to make it easier for customers to eat with more health.
“These new obligations will ensure that every customer – wherever they shop – has more access to affordable, healthy and sustainable food,” said Sarah Bradbury, Tesco’s Group Quality Director.
($ 1 = 7 0.7210)
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