The Church of England is likely to withdraw its investment in supermarkets that fail to meet its standards on the responsible sale of alcohol.
The Ethical Investment Advisory Group (EIAG) wants to tighten its policy on cheap supermarket booze because of concerns about “corporate complicity in the misuse of alcohol, including through inappropriate pricing and promotions.”
Supermarkets and other retailers that derive five per cent or more of their revenue from the sale of alcohol could be excluded under its new ethical investment policy.
It is the first time that supermarkets have fallen under the scope of the Church of England’s ethical investment policy on alcohol.
Supermarkets have been accused of fuelling Britain’s binge drinking problem by offering cut-price alcohol deals.
John Reynolds, Chair of the EIAG, said: “The EIAG is concerned about corporate complicity in the misuse of alcohol, including through inappropriate pricing and promotions.
“Institutional investors don’t talk to the supermarkets about this and our old policy had no teeth because we couldn’t divest from a supermarket.
“We want to use our influence as shareholders to bear down hard on poor corporate practice and to encourage good practice.”
The EIAG said it would “engage” with retailers that fail to meet the minimum standards on responsible sales before imposing the ultimate sanction of exclusion from investment.
Until the EIAG makes new recommendations, the old exclusions of companies deriving more than 25 per cent of revenues from alcohol will continue to be applied by the National Investing Bodies.
Sources
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