Emerging Markets

BMO Responsible Global Emerging Markets Equity Strategy ESG Profile and Impact Report 2020

Food and nutrition
July 2020

Emerging Markets Team: LGM

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Risk Disclaimer

The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested.

Investing in emerging markets is generally considered to involve more risk than developed markets.

Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any stocks or products that may be mentioned.

Issues related to food and nutrition are increasingly important as global food systems seek to provide food for nearly 10 billion people by 2050 within the planet’s boundaries that are under increasing pressure.

Zero hunger


Rising incomes across emerging markets have led these populations to exhibit significantly fast growth rates in demand for food and beverages. The opportunities for manufacturing and retail companies operating in these markets are vast; however, they face significant supply and demand risks from sustainability factors. On the supply side, natural resource constraints exacerbated by climate change increasingly affect production levels along agricultural supply chains. On the demand side, pressure is coming from evolving consumer preferences and regulatory standards in terms of affordability, diversity, quality and nutrition.

We aim to invest in businesses adept at capturing opportunities linked to changing diets and rising incomes, while helping drive food systems transformation. Such transformation is critical to improve the availability of food in a sustainable and scalable way. We, therefore, look for businesses that provide affordable, safe and nutritious food and beverages whilst effectively managing natural resource risks and pressures. We also expect them to invest in innovations to improve the nutritional profile and shelf life of their product portfolio, incorporate circular economy principles in their business strategies, provide decent and inclusive work and equitable trade, and work with smallholders to improve livelihoods.

    Sustainable Investment Awards 2020 Winner ESG research of the year - fixed income 

Risk Disclaimer

The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested.

Investing in emerging markets is generally considered to involve more risk than developed markets.

Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any stocks or products that may be mentioned.

No. of employees Company description SDG Alignment Number and subject of engagement(s)

AVI Ltd
Food & Beverage
SOUTH AFRICA

8,439

Target 2.1; Share of company revenue 19%
Provides affordable, safe and nutritious fish-based frozen food all year round

+ Target 2.1; Share of company revenue 19%
Provides affordable, safe and nutritious fish-based frozen food all year round


- Target 2.1; Share of company revenue 29%
Produces snack foods and beverages that provide limited nutritional value

1: Climate change, environmental stewardship, public health, corporate governance

BIM Birlesik Magazalar AS
Food & Staples Retailing
TURKEY

51,765

Operates food and basic consumer goods discount stores in Turkey.

n/a

1: Corporate governance

Dali Foods Group Co Ltd
Food & Beverage
CHINA

37,975

Branded food and beverage company with a diversified multi-brand product portfolio.

+ Target 2.1; Share of company revenue 13%
Provides affordable, safe and nutritious food, including soy milk and fresh bread, all year round


- Target 2.1; Share of company revenue 65% Produces snack foods and beverages
that provide limited nutritional value

1: Environmental stewardship

Inner Mongolia Yili
Industrial Group Co Ltd Food & Beverage
CHINA

56,079

Manufactures and distributes milk and dairy-based products.

+ Target 2.1; Share of company revenue 83%
Provides affordable, safe and nutritious food all year round


- Target 2.2; Share of company revenue 10%
Helps achieve targets on fighting stunting and wasting in children under 5 years of age through its infant milk powder formula

4: Climate change, environmental stewardship, public health, corporate governance

Jeronimo Martins SGPS SA
Food & Staples Retailing
PORTUGAL

108,560

Through its subsidiaries, distributes food in Portugal, Poland, and Colombia.

n/a

2: Public health, corporate governance

Magnit PJSC
Food & Staples Retailing
RUSSIA

217,258

Operates Russia's largest chain of discount supermarkets, hypermarkets and drugstores.

n/a

2: Corporate governance

Tingyi Cayman Islands
Holding Corp Food & Beverage
CHINA

58,182

Manufactures and sells instant noodles, baked goods and beverages in China.

+ Target 2.1; Share of company revenue 42%
Provides affordable, safe and nutritious food all year round


- Target 2.1; Share of company revenue 58% Produces snack foods and beverages
that provide limited nutritional value

3: Climate change, environmental stewardship, corporate governance

Universal Robina Corp
Food & Beverage
PHILIPPINES

14,239

Manufactures and distributes branded consumer foods as well as agricultural commodities across the ASEAN region and Oceania.

+ Target 2.1; Share of company revenue 21%
Provides affordable, safe and nutritious basic foods, including meat products and flour, all year round


- Target 2.1; Share of company revenue 79% Produces snack foods and beverages that provide limited nutritional value

4: Climate change, environmental stewardship, corporate governance

Vietnam Dairy Products
JSC Food & Beverage
VIETNAM

9,803

Manufactures and distributes milk and dairy-based products.

+ Target 2.1; Share of company revenue 100%
Provides affordable, safe and nutritious food all year round

1: Environmental stewardship, public health

Vitasoy International
Holdings Ltd Food & Beverage
HONG KONG

6,755

Manufactures and distributes plant-based food and beverages.

+ Target 2.1; Share of company revenue 100%
Provides affordable, safe and nutritious food all year round

4: Climate change, environmental stewardship, public health, corporate governance

Wal-Mart de Mexico SAB de CV
Food & Staples Retailing
MEXICO

238,972

Retails food, clothing, and other merchandise under a variety of store formats across Mexico and Central America.

n/a

3: Climate change, environmental stewardship, labour standards, public health, business conduct

Where company revenues do not add to 100%, then there is no SDG link for the remainder of the business revenues

Read our BMO Responsible Global Emerging Markets Equity Strategy ESG Profile and Impact Report 2020

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