Investors voice concern over meal program for U.K. school kids

A group of investors and money managers want a company responsible for providing food parcels to U.K. schoolchildren during the current COVID-19 lockdown to answer critical questions about its meals.

The coalition, representing £3 trillion ($4.07 trillion) in assets and led by charities and local authorities money manager CCLA Investment Management, sent an open letter to Compass Group CEO Dominic Blakemore. Compass subsidiary Chartwells was awarded a contract to provide food parcels to disadvantaged families in lieu of free school meals — usually distributed via a £30 voucher — by the U.K. government.

However, the company came under fire this week as a photograph and information circulating social media apparently showing an example of a food parcel accused them of falling short.

Chartwells issued a clarification and apology on its Twitter page on Tuesday following an investigation into the photograph, acknowledging that while the photograph was not entirely representative of its weekly food parcels that in its "efforts to provide thousands of food parcels a week at extremely short notice we are very sorry the quantity has fallen short in this instance."

Though the coalition acknowledged the clarification and apology, the letter said that signatories would welcome further reassurance as to how future food parcels will meet the needs of the families receiving them.

"As responsible investors, we are concerned by the disproportionate impact the disruption posed by COVID-19 has had on the poorest members of our society," James Corah, head of ethical and responsible investment at CCLA, said in a news release accompanying the letter.

"All children have the right to access nutritious diets to support healthy development, and we are particularly alarmed about the increase in child hunger during this period," the release said. "As a company that says it is committed to good nutrition and responsible business practices, Compass Group risks falling foul of its own guiding principles."

Despite the clarification and apology, "given the potential ramifications, the company must be completely transparent, make adjustments and improvements as required and move quickly to restore faith in its business," he added.

Signatories include Legal & General Investment Management, the £2.8 billion Church of England Pensions Board, London, and M&G.