A benchmark study of major food businesses has found that, although more major food companies are beginning to appreciate the business case for establishing animal welfare standards, the area remains in its infancy.

According to the developers of a global benchmark on animal welfare, businesses are failing to address the animal welfare concerns of investors and consumers. The second report of the Business Benchmark on Farm Animal Welfare found that, despite growing investor interest in the business case for managing farm animal welfare standards, companies are failing to provide reassurance on animal welfare standards.

The Benchmark was released at an event in Paris on Tuesday (10^th December). It is backed by animal welfare groups Compassion in World Farming and World Society for the Protection of Animals (WSPA). The authors assessed 70 global food businesses, including retailers, caterers and wholesalers and judged that fewer companies had taken appropriate measures on animal welfare than acknowledging the importance of the issue. Even so, well over half of the businesses assessed are now bringing welfare into greater focus and the proportion is increasing.

Even so, whilst over 70 percent of the companies assessed by BBFAW acknowledge farm animal welfare as a business issue, only 56 percent have published a formal farm animal welfare policy, just 39 percent have an approach to animal welfare that is governed by executives, and only 41 percent have published objectives and targets for farm animal welfare.

In Europe animal welfare is an important and growing issue. Alongside price, consideration of animal welfare is consistently shown as a major deciding factor in consumer decisions in surveys. The figures published by BBFAW reveal that businesses are realising the importance of welfare; businesses with a published animal welfare policy have increased by 10 percent since 2012, and those that have published objectives and targets showed a 15 percent increase on last year (with 41 per cent compared to 26 percent in 2012).

Commenting on the findings, Rory Sullivan, an advisor to BBFAW said, "A key conclusion to be drawn from the 2013 Benchmark is that farm animal welfare continues to be a systemic risk that many companies in the food industry are not effectively managing. The fact that over half of the companies covered by the Benchmark provide little or no information on their approach suggests that farm animal welfare remains an immature business issue."

However, Programme Director, Nicky Amos was optimistic. She said, "We have seen progress… in the number of companies identifying farm animal welfare as a business issue." Amos added that several of the companies that have more established welfare policies have improved their performance further still this year.

She identified seven companies, including the Coop Group (Switzerland), Marks and Spencer, Cooperative Food (UK), Sainsbury's, Marfrig, Noble Foods and Unilever as having taken leadership positions in animal welfare, driving the industry forward.

Mike Baker, CEO, World Society for the Protection of Animals, commented, "Animal welfare should play an integral part in basic food standards; I think we are seeing more demand from both consumers and regulators for this. The Benchmark's effectiveness is demonstrated by the significant changes we have seen in company performance in the last year alone, and we hope that will continue year on year."

Introducing the report, Jeremy Coller, Chief Investment Officer at Coller Capital said, "Environmental, Social and Governance, or ESG, policies are rapidly becoming a vital part of investors’ toolkits... Investors in the food industry are beginning to understand that higher standards of welfare are not only important to meeting consumer expectations but can also benefit business efficiency, profitability and long-term market value."