How to measure ESG credentials: we focus on culture and attitude to a few key topics As the final and crucial link between the global food supply chain and the consumer, the food retailers face high expectations. On the one hand they''re expected to limit price increases, on the other, pressure is growing to source sustainably. Such are the conflicts that the industry can never hope to keep everybody happy so how to measure their ESG credentials? Rather than a tick-list based on disclosure, we take a different stance attempting to look at their approach to a few key topics and by extension, understand company culture better. Imprecise yes, so think start of debate, not end. Differing attitudes on absorbing food inflation a key test of place in society Food price inflation has been very high profile in the last 18 months further undermining food security. In some companies, we see a clear desire to balance the needs of society and shareholders, in others, most notably the US food retailers, the focus seems more on maintaining margins. In part competition is an explanation and for the US food retailers, the outcome is good for shareholders. But it cements our view that culturally, the European food retailers are generally ''better citizens''. Despite the focus on pay and rights of workers, employee satisfaction seems similar Pay and the rights of workers have also been big topics in the last 18 months. However, it would be wrong to associate employee satisfaction simply with pay. Certainly low pay can make people unhappy, but employees are more likely to complain about flexibility or their line manager. Despite pressure on low paid workers, we don''t detect a material deviation in employee satisfaction. In food delivery, we remain of the view that gig-working isn''t bad, provided the relationship is transparent. Tesco, Sainsbury''s, Colruyt and HelloFresh our ESG leaders In this note, we undertake a comprehensive refresh of our ESG scores looking...