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BMS/CF Marketing Index 2021
              Major baby food companies’ compliance with the International
              Code of Marketing of Breast-milk Substitutes

              June 2021

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BMS/CF Marketing Index 2021 - Major baby food companies' compliance with the International Code of Marketing of Breast-milk Substitutes - Access ...
Disclaimers
ATNI is an independent organization that bases its work on the input of many stakeholders. The findings,
interpretations, and conclusions expressed in this report may not necessarily reflect the views of all companies,
members of the stakeholder groups or the organizations they represent, or of the funders of the project. This
report is intended to be for informational purposes only and is not intended as promotional material in any
respect. This report is not intended to provide accounting, legal or tax advice or investment recommendations.
Whilst based on information believed to be reliable, no guarantee can be given that it is accurate or complete.
The findings of this Index regarding companies’ performance rely to a large extent on information shared by
companies, in addition to information that is available in the public domain. Several factors beyond the
companies’ control may impact the availability of information such as differences in disclosure requirements
among countries or capacity constraints within companies due to, among other factors, the Covid-19 pandemic.
Therefore, in the case of limited or no engagement by such companies, this Index may not represent the full
extent of their efforts.

Westat and the Nutrition Center of the Philippines (NCP), its local subcontractor, were responsible for the
collection of data related to company compliance with the International Code of Marketing of Breast-milk
Substitutes, all subsequent, relevant WHA resolutions, and any additional country-specific regulations related to
marketing of these products in the Philippines. Similarly, Westat and Universidad Iberoamericana (IBERO) in
collaboration with the Instituto Nacional de Salud Pública (INSP), IBERO/INSP being Westat’s local
subcontractor, were responsible for the same scope of data collection in Mexico. In the Philippines, Westat and
NCP engaged with health facilities, mothers of infants who attended those facilities, health professionals at the
facilities, and retailers as part of the data collection and analysis process. In Mexico, Westat and IBERO/INSP
engaged with retailers as part of the data collection and analysis process. Westat is responsible for the analysis
of the data related to compliance with ATNI’s methodology on which the Access to Nutrition Foundation
(ATNF) will (in part) base the scoring of baby food companies in the ATNI BMS/CF Marketing Index 2021,
which will in turn inform the companies’ scores in the ATNI Global Index 2021.

The user of the report and the information in it assumes the entire risk of any use it may make or permit to be
made of the information. NO EXPRESS OR IMPLIED template WARRANTIES page OR REPRESENTATIONS
ARE MADE WITH RESPECT TO THE INFORMATION (OR THE RESULTS TO BE OBTAINED BY THE USE
THEREOF), AND TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, ALL IMPLIED
WARRANTIES (INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF ORIGINALITY,
ACCURACY, TIMELINESS, NON-INFRINGEMENT, COMPLETENESS, MERCHANTABILITY AND FITNESS
FOR A PARTICULAR PURPOSE) WITH RESPECT TO ANY OF THE INFORMATION ARE EXPRESSLY
EXCLUDED AND DISCLAIMED.

Euromonitor International statistics are used under license. While every attempt has been made to ensure
accuracy and reliability, Euromonitor International cannot be held responsible for omissions or errors of historic
figures or analyses.

Without limiting any of the foregoing and to the maximum extent permitted by applicable law, in no event shall
ATNF, Westat, nor any of their respective affiliates or contractors, have any liability regarding any of the
information for any direct, indirect, special, punitive, consequential (including lost profits) or any other damages
even if notified of the possibility of such damages. The foregoing shall not exclude or limit any liability that may
not by applicable law be excluded or limited.

This report sets out the findings of a study undertaken by several organizations. We would like to thank the Bill
& Melinda Gates Foundation, the Dutch Ministry of Foreign Affairs (DGIS) and UK Aid - through the UK
Foreign, Commonwealth and Development Office (FCDO) - for their financial support. We would also like to
thank our research partners Westat, NCP and IBERO/INSP for their diligent efforts, as well as organic
Intelligence and Eficiencia Informativa (EFINFO), the firms that provided the traditional media monitoring
service in the Philippines and Mexico, respectively. We are grateful for the guidance of the BMS Expert Group.
WRENmedia edited the report. Design is by Kummer & Herrman. © Copyright 2021
BMS/CF Marketing Index 2021 - Major baby food companies' compliance with the International Code of Marketing of Breast-milk Substitutes - Access ...
Abbreviations
ATNI        Access to Nutrition Initiative
BMS         Breast-milk substitutes
CF          Complementary Foods
FAO         Food and Agriculture Organization of the United Nations
FCDO        Foreign and Commonwealth Department Office
DGIS        Netherlands Ministry of Foreign Affairs
IBERO       Universidad Iberoamericana
IBFAN       International Baby Food Action Network
IF          Infant formula
INC         Incidences of non-compliance
INSP        Instituto Nacional de Salud Pública
FSMP        Formula for Special Medical Purposes
FOF         Follow-on formula
GUM         Growing-up milk(s)
HA          Hypo-allergenic
MJN         Mead Johnson Nutrition
NCP         Nutrition Center of the Philippines
NGO         Non-governmental Organization
RLF         Responsible Lobbying Framework
PKU         Phenylketonuria
SDG         Sustainable Development Goal
The Code International Code of Marketing of Breast-milk Substitutes
UNICEF      United Nations Children's Fund
WHA         World Health Assembly
WHO         World Health Organization
BMS/CF Marketing Index 2021 - Major baby food companies' compliance with the International Code of Marketing of Breast-milk Substitutes - Access ...
Contents

Disclaimers                                                                                    2

Welcome                                                                                        7
1. Executive Summary                                                                           9
About the Index                                                                                9

The importance of nutrition in early life                                                      9
Methodology                                                                                    9
BMS/CF Marketing Index 2021 Ranking                                                           10
Key finding                                                                                   11
Results by company                                                                            11
Future Indexes                                                                                15

2. Introduction                                                                               16
3. Context                                                                                    18
3.1 The importance of optimal infant and young child nutrition                                18

3.2 The imperative of increasing levels of breastfeeding worldwide and improving infant and
young children’s diets                                                                        18
3.3 International recommendations on breastfeeding and complementary feeding                  19

3.4 Why is use of BMS and CF increasing?                                                      21

4. Approach to company assessment                                                             22
4.1 Companies selected                                                                        22
4.2 ATNI’s methodology                                                                        24

5. BMS/CF Marketing Index Ranking 2021                                                        26
5.1 Analysis                                                                                  27

5.2 Key findings and recommendations                                                          29

6. Detailed results: BMS/CF 1 Corporate Profile                                               33
6.1 How do the companies perform overall on BMS/CF 1 Corporate profile?                       35
6.2 How have companies’ Corporate Profile scores changed since 2018?                          37
6.3 How well aligned to The Code are the companies’ policies and management systems?          38
6.4 How do the companies perform in relation to responsible lobbying?                         40
BMS/CF Marketing Index 2021 - Major baby food companies' compliance with the International Code of Marketing of Breast-milk Substitutes - Access ...
6.5 How extensive is companies’ disclosure?                                                  43
6.6 Cross-cutting issues identified by the 2021 assessment                                   44
Issue 1: The wording of companies’ marketing policies does not fully align to The Code       44

Issue 2: The scope of companies’ policies is limited, and subject to exclusions by product
type and geography                                                                           45
Issue 3: Exclusion of FSMPs from companies’ policies                                         46

Issue 4: Weaknesses in application of Article 8 of The Code                                  48
Issue 5: Companies that make complementary foods have not yet made policy commitments
to implement the WHO guidance associated with WHA Resolution 69.9                            49

6.7 Conclusions relating to BMS/CF 1 Corporate Profile                                       51
6.8 Recommendations relating to BMS/CF 1 Corporate Profile                                   51

7. BMS/CF 2 In-country marketing assessments                                                 53
7.1 Introduction                                                                             53
7.2 Country selection                                                                        53
7.3 Company presence                                                                         54
7.4 Scope of in-country assessments                                                          54
7.5 Scoring                                                                                  55
7.6 BMS/CF 2 Combined results from the Philippines and Mexico                                56

7.7 Detailed results                                                                         57
7.8 What was the overall level of Code compliance in the two countries?                      59
7.9 What level of compliance did each company achieve?                                       60

7.10 Observations related to the in-country studies                                          62
7.11 Conclusion                                                                              65
7.12 Recommendations                                                                         65

8. Future Indexes                                                                            67
Annexes                                                                                      68
Annex 1: Definitions of BMS and CF used by ATNI, based on The Code, WHO and Codex
definitions                                                                                  68
Annex 2. How comprehensive are companies’ overarching commitments to The Code and to
support breastfeeding?                                                                       69

Annex 3: Comparison of companies’ scores on policy and management systems in 2016,
2018 and 2021                                                                                70
BMS/CF Marketing Index 2021 - Major baby food companies' compliance with the International Code of Marketing of Breast-milk Substitutes - Access ...
Annex 4: How companies’ initial scores are weighted to generate final scores on the
BMS/CF 1 Corporate Profile                                                             72
Final weighted BMS/CF 1 Corporate Profile scores                                       74

Annex 5: Estimating the effect of the inclusion of WHA Resolution 69.9 on companies’
scores                                                                                 75

Endnotes                                                                               77
BMS/CF Marketing Index 2021 - Major baby food companies' compliance with the International Code of Marketing of Breast-milk Substitutes - Access ...
Welcome
It is my pleasure to introduce this BMS/CF Marketing Index 2021. This Index is both new and not new!
ATNI previously rated the world’s six largest baby food companies’ marketing practices through a sub-
ranking of each Global Index. The last one was published in 2018. Now, for the first time, we are
presenting this research in the form of a stand-alone Index. It expands on our previous research in two
ways. It encompasses the nine largest baby food companies in the world and it assesses their marketing
of both breast-milk substitutes (BMS) and complementary foods (CF). I would like to thank the funders of
this work for their continuing support: the Bill & Melinda Gates Foundation, and the governments of the
United Kingdom through the Foreign and Commonwealth Development Office (FCDO) and the
Netherlands Ministry of Foreign Affairs (DGIS).

The Access to Nutrition Initiative (ATNI) is an independent not-for profit organization, established in 2013.
We work to encourage the world’s largest food and beverage companies to do everything they can to
address all forms of malnutrition. We design and publish various tools designed to encourage ‘healthy
competition’ among these companies by tapping into their competitive nature. In the eight years since
ATNI was established, we have proven that our model of benchmarking companies is a driver of and
accelerates meaningful change.

Our Indexes measure food and beverage companies’ contribution to addressing nutrition challenges.
Among these are the deaths of over 832,000 babies each year who could have lived had they been
optimally breastfed. Millions of children suffer wasting, stunting and micronutrient deficiencies due to
inadequate diets. Increasing numbers are becoming overweight or obese for the same reason. Given the
increasing roles of processed products – including BMS and CF - in diets around the world, one of ATNI’s
principal goals is to drive greater action by the private sector to turn this tide, to give all children the best
start in life. Breastfeeding should be central to the diets of infants and young children, from birth up to
two years or beyond, according to the WHO. Extensive independent academic research has established
that breastmilk is better for children’s health than breast-milk substitutes and that breastfeeding is also
beneficial to mothers’ health.

The nine companies rated in this report generated estimated revenues from BMS and CF of nearly
US$38 billion in 2019, over half of that year’s global total. One of the ways they secured these sales was
through extensive and effective marketing. With the advent of social media, baby food companies have
even greater reach than ever before. The central issue is that their products compete with breastfeeding.
Even in 1981, when the sector was much smaller and marketing channels were more limited, this problem
had been identified. Following extensive consultation with a wide range of stakeholders, WHO determined
to address it. And so, the International Code of Marketing of Breast-milk Substitutes was born. It did not
aim to prevent the use of these products - sometimes they are necessary because some infants cannot
be breastfed and some mothers cannot breastfeed. Rather, its aim was to contribute to the provision of
safe and adequate nutrition for infants, by protecting and promoting breastfeeding. Specifically, the
intention was to ensure that mothers and caregivers had accurate and adequate information about BMS
and how to use them safely and properly, and that these products were marketed and distributed
appropriately.

That aim is as relevant and urgent today as it was 40 years ago. The hope was that the WHO’s Member
States would pass laws and regulations to implement the 1981 Code. That hope has not been realized:
only 31 countries have legal frameworks that substantially implement the Code and the 18 subsequent
resolutions that support and augment it passed by the World Health Assembly since then. In the absence
of market-by-market legal measures, it is imperative that baby food companies take voluntary action to
implement The Code - which they are called upon to do, in Article 11. This Index assesses the extent to
which they have adopted policies and practices to do so, and how transparent they are about this. It also
looks at their related lobbying policies and practices.

                                                                                                             7
BMS/CF Marketing Index 2021 - Major baby food companies' compliance with the International Code of Marketing of Breast-milk Substitutes - Access ...
One of ATNI’s goals is to work closely with - and inspire action by - other stakeholders. In this vein, for the
first time, FTSE Russell, one of the world’s leading financial services companies, has drawn on this
research to inform its decisions about the suitability of three of the companies to retain their place on the
prestigious FTSE4Good Index. We look forward to further collaboration with FTSE Russell – and with
others.

While ATNI hopes that all governments will step up their efforts to adopt legal measures to give effect to
The Code, in the short term the most important action I hope will ensue from the publication of this report
is that all baby food companies accelerate their efforts to implement The Code in full. They can play a
pivotal role in supporting the realization of the 2025 global nutrition targets, the SDGs by 2030, and in
saving the lives and protecting the health of babies, young children, and mothers everywhere.

Inge Kauer
Executive Director
Access to Nutrition Foundation

                                                                                                           8
BMS/CF Marketing Index 2021 - Major baby food companies' compliance with the International Code of Marketing of Breast-milk Substitutes - Access ...
1. Executive Summary

About the Index                                       The importance of nutrition
This Index assesses the extent to which the
                                                      in early life
world’s nine largest manufacturers of breast-
                                                      The critical importance of good nutrition and
milk substitutes (BMS) and complementary
                                                      healthy diets has been underlined by the
foods (CF) market their products in line with
                                                      COVID-19 pandemic. Baby food companies can
WHO guidance, as set out in the 1981
                                                      play a critical role in improving the health and life
International Code of Marketing of Breast-milk
                                                      prospects of infants and young children by
Substitutes (BMS) and 18 subsequent relevant
                                                      protecting and supporting breastfeeding. By
World Health Assembly (WHA) resolutions
                                                      following the recommendations of The Code,
(collectively referred to as The Code). For the
                                                      they can contribute to the realisation of several
studies ATNI commissioned to assess the
                                                      WHO 2025 nutrition targets and the Sustainable
companies’ marketing in the Philippines and
                                                      Development Goals. Specifically, to SDG 2 - by
Mexico, the scope extends to any national legal
                                                      preventing child mortality and various forms of
measures that go beyond The Code.
                                                      undernutrition - and SDG 3 - by decreasing
                                                      children’s risks of developing NCDs later in life.
This Index is the only one of its kind. A score of
100% would indicate that a company’s
                                                      Until such time as all countries have passed laws
marketing policies, practices and disclosure are
                                                      and regulations to give effect to The Code, baby
fully aligned with these WHO recommendations.
                                                      food companies can contribute to health and
                                                      nutrition by voluntarily marketing their products
Similar prior assessments were presented as a
                                                      in line with WHO recommendations. To date,
sub-ranking of ATNI’s 2016 and 2018 Global
                                                      only 31 countries have a Code-aligned legal
Indexes. Now, to place greater emphasis on, and
                                                      framework to control the marketing of BMS and
direct greater attention to the critical importance
                                                      CF. While many factors have contributed in
of the health and nutrition of infants and young
                                                      recent years to falling breastfeeding rates in
children, ATNI is publishing a stand-alone Index.
                                                      many countries, and the concomitant increasing
                                                      use of BMS, a principal driver has been the
The companies included are the nine largest by
                                                      increasing and widespread marketing of these
global revenues in the baby food segment.
                                                      products. Breastfeeding has long been proven to
Together they generated an estimated US$38
                                                      provide myriad significant health benefits
billion in sales in 2019, just over half of the
                                                      compared to BMS. These benefits are unique to
global total for that year. The scores of the six
                                                      breastfeeding and help both mother and infant.
companies within this Index that are also
                                                      Positive long-term benefits for infants include
constituents of the Global Access to Nutrition
                                                      protection against becoming overweight or
Index 2021will continue to be based, in part, on
                                                      obese, as well as against certain non-
their scores in this Index.
                                                      communicable diseases such as diabetes
                                                      mellitus. Further, in areas of the world where
One of the most significant changes in the
                                                      hygiene is poor and the availability of, and
scope of this assessment was the inclusion for
                                                      access to, food is sub-optimal, breastfeeding is
the first time of the seventh, eighth and ninth
                                                      key to lowering infants’ risk of undernutrition and
largest players in the sector, which are all
                                                      infectious diseases.
headquartered in China. These companies are
China Feihe Limited (Feihe), China Mengniu
Dairy Company Limited (Mengniu), Inner                Methodology
Mongolia Yili Industrial Group (Yili), with
combined estimated sales in 2019 of around            The full methodology is available here. In short,
US$4.5 billion.                                       the Index scores and ranks companies based on
                                                      two types of assessment that are given equal
                                                      weight. The first – BMS/CF 1 - determines the
                                                      extent to which the companies’ own policies –

                                                                                                     9
BMS/CF Marketing Index 2021 - Major baby food companies' compliance with the International Code of Marketing of Breast-milk Substitutes - Access ...
adopted voluntarily – and their associated         of national legal measures with The Code, and
management systems and disclosure align fully      others, influences how companies perform on
to the recommendations of The Code. One            the second element of the assessment. For the
section also assesses the stance companies         first time, ATNI provided data from this element
take on lobbying governments in relation to        of the research to FTSE Russell to use in its
adoption of legal measures to implement The        decisions about the suitability of Danone, Nestlé
Code. The companies’ scores are based both on      and Reckitt to continue to be constituents of its
information in the public domain and – if they     FTSE4Good Index Series.
wish – unpublished internal documentation
which they submit under a non-disclosure           One principal change to the previous
agreement to ATNI’s online research platform.      methodology is the inclusion of an assessment,
                                                   for the first time, of companies’ marketing in
The second – BMS/CF 2 - aims to assess the         accordance with 2016 WHO ‘Guidance on
extent to which companies market their             ending the inappropriate promotion of foods for
products in line with The Code within two low or   infants and young children’, referenced in WHA
middle-income countries (called higher-risk        Resolution 69.9 adopted at the 69th World
countries). As for previous assessments, ATNI      Health Assembly. Another notable change is the
selected two countries in which to undertake       inclusion of the next three largest companies in
research for this Index: the Philippines and       the baby food segment, which are all based in
Mexico. ATNI’s summary reports, and those of       China. ATNI was unable to establish contact with
Westat, the company which ATNI commissioned        these companies and therefore they did not
to undertake them, are available here.             engage in the research process. Their
                                                   assessments therefore had to be based only on
Numerous factors relating to the companies’        information in the public domain, as has been
own policies and practices, their market share,    the case for other companies in the past.
length of time in the market and the alignment

BMS/CF Marketing Index 2021 Ranking

                                                                                                10
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                                                                                                                                                                                                            1212
                                                                                                                                                                                                              12
C o m p a n y s c or e s a n d r a n ki n g s , 2 0 2 1 , a n d G l o b a l I n de x 2 0 2 1 a dj u s t me n t , w h e r e r e l e v a n t
C o m p a n y s c or e s a n d r a n ki n g s , 2 0 2 1 , a n d G l o b a l I n de x 2 0 2 1 a dj u s t me n t , w h e r e r e l e v a n t

Ten key findings and recommendations
Ten key findings and recommendations
1 . T w o c o m p a ni e s h a v e ma d e s i g ni f i c a n t                                             • Danone demonstrated complete compliance
i1m. pTrwoovecm             oemnptasni n  i esthheairveBM  mS adm e asrikgentiifnicgapnot lic i es ,       • in    the Philippines.
                                                                                                                Danone      demonstrated  It alsocomplete
                                                                                                                                                   achievedcompliance
                                                                                                                                                               a high
 m
 i mapnraogveem            meennttssiyns ttehm    eisr BanMdS/ omr adriksectl oi nsgurpeo–   licai ess ,        relative   level   of compliance      in  Mexico.
                                                                                                                in the Philippines. It also achieved a high
 im    l l uasntargateemdein    nttshyesi rteBmMsSa/nCdF/ o1r C        o  r p o   r a  t e
                                                                     di s c l os u r e – a s               • Nestlé
                                                                                                                relativewaslevelfound     to have a in
                                                                                                                                   of compliance       high  relative level
                                                                                                                                                          Mexico.
  P
  i l lruosftirl eatsecdoirnesth. ei r BMS/ CF 1 Corporate                                                      of compliance        in  both   Mexico
                                                                                                           • Nestlé was found to have a high relative     and  the level
  P r o f i l e s c o r es .                                                                                    Philippines     during     the  study
                                                                                                                of compliance in both Mexico and the   period.   It is the
              • Reckitt revised and published a                                                                 market    leader     by  sales   value  in  both
                                                                                                                Philippines during the study period. It is the
              • comprehensive
                     Reckitt revised and             BMSpublished
                                                              marketing      a policy                           countries.
                                                                                                                market leader by sales value in both
                     following            the    acquisition
                     comprehensive BMS marketing policy            of    Mead          Johnson             • KraftHeinz
                                                                                                                countries. also achieved a high level of
                     Nutrition           in    2017.     The
                     following the acquisition of Mead Johnson   policy     however                        • compliance
                                                                                                                KraftHeinz also  in Mexico
                                                                                                                                       achieved in relation  to itsof
                                                                                                                                                    a high level     CF
                     applies
                     Nutritiononly              to infant
                                         in 2017.        Theformula          and follow-
                                                                 policy however                                 products.
                                                                                                                compliance in Mexico in relation to its CF
                     on
                     applies formula  only(and        excludes
                                                to infant     formula most   and  of follow-
                                                                                        its                     products.
                     formulas
                     on formula          for(andspecial      medical
                                                      excludes        most purposes,
                                                                                  of its                   ATNI commends these results but encourages
                     FSMPs).
                     formulas for special medical purposes,                                                the
                                                                                                           ATNI  companies
                                                                                                                   commends      to these
                                                                                                                                     take action
                                                                                                                                             resultstobut
                                                                                                                                                        eliminate
                                                                                                                                                            encouragesall
              • For  FSMPs).  the first time, KraftHeinz shared its                                        incidences       of non-compliance         as
                                                                                                           the companies to take action to eliminate all  soon   as
                     BMS
              • For the          Marketing
                                      first time,CharterKraftHeinz with shared
                                                                            ATNI though     its            possible.
                                                                                                           incidences of non-compliance as soon as
                     itBMShas Marketing
                                  substantialCharter    gaps compared
                                                                   with ATNItothough       The             possible.
                     Code
                     it has and             does not
                                  substantial           gapscover     CF, which
                                                                 compared                  make
                                                                                      to The               3. None of the six companies that have a
                     up      most       of    its  sales.
                     Code and does not cover CF, which make                                                BMS
                                                                                                           3. None marketing
                                                                                                                        of the six   policy    fully incorporate
                                                                                                                                        companies        that have the  a
                     up most of its sales.                                                                 wording       of  all  articles    of  The
                                                                                                           BMS marketing policy fully incorporate the   Code,    i.e., the
                 ATNI welcomes these improvements.                                                         1981
                                                                                                           wording  Code     andarticles
                                                                                                                         of all     all subsequent
                                                                                                                                              of The Code, relevant     WHA
                                                                                                                                                                 i.e., the
                 ATNI welcomes these improvements.                                                         resolutions       and     related     guidance
                                                                                                           1981 Code and all subsequent relevant WHA          and
  2 . T h r e e c o m p a ni e s ac h i ev e d h i g h o r                                                 standards,
                                                                                                           resolutionsup     and  torelated
                                                                                                                                      and including
                                                                                                                                                 guidance  WHAand69.9.
  c2o. m     Thprleeeteccoommppalni ai ensc eacwhiitehvT        eh
                                                                 dehC  i gohdoer, and                      standards, up to and including WHA 69.9.
   n
   c ompl ete c ompli anc e wi th The CoonddeT, haendCode,
         a   t i o n a   l  r e g u  l a t i o n s  t h a t g o  b e  y                                    This is illustrated in their initial BMS/CF 1 scores
   innatth     i oenatw  l roesgtuuldaitei osncsotnhdaut cgtoedbei nyoMnedxTichoeaCnodde,                  falling
                                                                                                           This is well    short of
                                                                                                                     illustrated    in 100%.
                                                                                                                                        their initial BMS/CF 1 scores
    ti nhethPehtiw      li popsi ntueds i edsurci nognd2u0c2te0d. Ti nhiMs eisx iicl l u
                                                                                       osatrnadted         falling well short of 100%.
     b   y    t  h e i r   B  M   S /  C    F   2  s c o r e s .
     t h e P h i l i p p i n es d u ri n g 2 0 2 0 . T h i s i s i l l us t r a t e d                            • All six companies are urged to update
     b y t h e i r B MS / C F 2 s c or e s .                                                                     • their
                                                                                                                       All sixexisting
                                                                                                                                companies policies
                                                                                                                                                 are to aligntotheir
                                                                                                                                                     urged       update
                                                                                                                       wording     fully  to  The   Code.
                                                                                                                       their existing policies to align their
                                                                                                                       wording fully to The Code.
                                                                                                                                                                     13
                                                                                                                                                                     13
•    All companies must revise their policies
  4. The three companies newly added to                  to incorporate commitments to
  this Index – Feihe, Mengniu and Yili – have            implement in full the recommendations
  not yet published a BMS marketing policy.              in the guidance associated with WHA
                                                         Resolution 69.9 in relation to CF for
   •   ATNI strongly encourages these                    children 6-36 months of age.
       companies to publish BMS marketing
       policies in which they commit both to        7. The geographic application of
       uphold national regulation in China (and     companies’ policies is not universal and
       any other countries in which they            therefore not fully aligned to The Code.
       currently do business or may do              The Code is intended to be applied
       business in future) and to implement The     consistently in all markets. The Code does not
       Code in full in all markets.                 make a distinction between ‘higher-risk’ and
                                                    ‘lower-risk’ countries. This distinction was
  5. No company’s BMS marketing policy              introduced by FTSE Russell’s FTSE4Good
  covers all types of formula marketed as           Index Series in 2010.
  suitable for infants from birth to 36 months
  of age. This is the most significant, common      •    All companies are urged to restate the
  weakness in the companies’ policies. While             geographic scope of their policies to be
  more include infant formulas and follow-on             global, in respect of all product types and
  formulas within their scope, none extend to            all provisions of The Code.
  growing-up milks. Further, many companies
  state that some or all of their FSMP products     8. Companies’ approaches vary with
  (formulas for special medical purposes) are       regards to upholding their own policies in
  excluded from their policies and/or they          relation to local legal measures that
  follow national regulatory definitions of these   implement The Code. While all companies
  products. Although not yet factored into          commit to uphold national laws, regulations
  ATNI’s methodology nor the companies’             and standards, and most pledge to uphold
  scores, of particular concern is the exclusion    their policies in full where such legal
  from the scope of company policies some or        measures are absent or less extensive than
  all of their FSMPs. These products are BMS        their own policies, not all companies do so.
  and have always been included in the
  definition of BMS products in the scope of        •    ATNI calls on all companies that do not
  The Code and should be included within the             yet do so to commit not only to comply
  scope of companies’ BMS marketing policies.            with local laws and regulations, but to go
                                                         further and uphold their policies in full -
   •   All companies must extend the scope of            adhering to the scope they establish for
       their policies to include all types of            their policies in terms of products and
       formulas, including growing-up milks and          types of marketing, and to do so in all
       all FSMPs, to fully align them to The             countries where legal measures are
       Code.                                             weaker than The Code, or where they
                                                         are absent altogether.
  6. None of the companies has a policy on
  marketing CF for young children aged 6-           9. Gaps between the companies’ policies
  36 months that aligns to the                      and The Code were made clear by the in-
  recommendations the guidance associated           country assessments in the Philippines and
  with WHA Resolution 69.9. Despite this            Mexico. The critical importance of both
  resolution and the associated guidance being      strong national laws and regulations and of
  adopted by the WHA five years ago, in May         companies adopting global policies that align
  2016, which inter alia made new and specific      fully to The Code was made clear by the
  recommendations about marketing CF, none          results of the studies in the Philippines and
  of the companies that make these foods have       Mexico. While neither country’s laws nor
  published a separate policy or amended their      regulations fully implement The Code, those
  existing policy provisions to implement the       of the Philippines are much more closely
  recommendations in full.                          aligned to it than those in Mexico. As a result,
                                                    ATNI found far fewer incidences of non-
                                                    compliance with The Code and the one

June 2021                                                                                       14
aspect of local regulations relating to labelling            voluntary commitments due to the
   in the Philippines (152) than in Mexico (325).               considerable impact such steps would
                                                                have on their revenues and profits.
   Moreover, the compliance of the companies               •    ATNI calls on all companies to
   included in this Index was better in relation to             implement the Responsible Lobbying
   product types covered by their policies                      Framework in full and to put in place
   (typically infant formulas and follow-on                     rigorous systems to ensure that their
   formulas) and worse in relation growing-up                   interactions with policymakers and
   milks and CF (though these products are also                 governments in all markets are governed
   less well covered by the national legal                      by their public commitments. Much
   measures). This illustrates that when                        greater transparency about their
   companies adopt policies aligned to The                      lobbying positions and activity must also
   Code and put in place effective management                   be provided. Investors are urged to use
   systems to implement those policies, less                    their influence with companies to
   inappropriate marketing occurs.                              encourage them to take these steps.

    •   ATNI calls on all countries that have not
        yet done so to emulate the 31 countries        Future Indexes
        that have to date adopted laws and
        regulations substantially or fully aligned     ATNI hopes that this Index will aid the work of all
        with The Code. By doing so they will           organizations and individuals committed to
        create a level-playing field for ALL           improving the health of infants and young
        companies.                                     children, particularly through increasing
                                                       breastfeeding everywhere. ATNI encourages all
    •   However, given that it is likely to take       stakeholders to use the Index and to provide
        many years for countries to pass such          feedback about how they have used it and how it
        measures, in the meantime it is                could be improved in future.
        imperative that companies adopt
        marketing policies that fully align to the     From the autumn of 2021, ATNI will hold a series
        Code, in all dimensions, as already noted      of consultations with a wide range of stakeholders
                                                       to collate this input and inform the evolution of the
10. Some companies’ have reasonably good               methodology for the next Index.
commitments relating to lobbying in relation to
legal measures and standards to implement              The next BMS/CF Marketing Index – planned for
The Code. Now is the time to strengthen                2023 - will be expanded to the world’s 20 largest
them. It is vital that all countries adopt national    baby food manufacturers.
laws, regulations and standards that fully align to
The Code. ATNI assessed the extent to which
companies pledge to support such efforts by
assessing the relevant commitments,
management systems and disclosure, using a
small number of indicators. However, a related
report published in June 2021 entitled Spotlight
on Lobbying - provides a more comprehensive
picture.

    •   Companies that make BMS and CF must
        make clear and unequivocal
        commitments to support – and not to
        undermine – the efforts of governments
        and international bodies to adopt Code-
        aligned legal frameworks. This will both
        provide the necessary protections to
        breastfeeding while also creating a level-
        playing field on which all companies can
        compete fairly. Without such measures,
        most companies are reluctant to make

June 2021                                                                                               15
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