Antimicrobial resistance (AMR)

Antimicrobial resistance (AMR) is a systemic risk to both society and the global economy. If effective countermeasures are not taken, the global annual GDP loss by 2050 is estimated to be nearly -4 percent, and up to 10 million people risk dying each year, according to the World Bank. The WHO has identified AMR as one of the greatest global threats to public health.

AMR occurs when bacteria, viruses, fungi, and parasites survive despite being exposed to drugs, making infections more difficult to treat and increasing the risk of the spread of disease, severe illness, and death. The main contributing factor to the development of AMR is the overuse and misuse of antibiotics in intensive industrial animal farming.

Effective antibiotics are a necessary component of an efficient healthcare system. For long-term investors like the AP Funds, AMR is considered a priority risk, and it is important that effective countermeasures are taken because AMR can pose a serious threat to people, society, specific industries (including food production and healthcare), as well as economic growth and thus the AP Funds’ investments.

Stopping AMR is a complex and extensive challenge, and the Council on Ethics therefore believes that collaboration between different actors is key to effectively countering AMR.

Priorities for the Council on Ethics

Within the focus area of AMR, the Council on Ethics primarily has two priorities. The Council on Ethics works to raise awareness among investors and other stakeholders about why AMR is a significant risk to public health and the economy and thereby the AP Funds’ portfolios. The Council on Ethics also works to influence systemically important companies, especially in the animal pharmaceutical and fast-food industries, where the funds have holdings, towards responsible use of antibiotics.

The reason the Council on Ethics prioritizes animal husbandry is that antibiotics are used for growth promotion and to prevent animals from getting sick, which has resulted in intensive industrial animal farming accounting for more than 70 percent of global antibiotic use. Overuse of antibiotics in intensive industrial animal farming is therefore considered the single largest contributing factor to AMR. The demand for meat and dairy products is expected to increase with the global population growth, making the need for responsible use of antibiotics even more relevant to limit the risk of widespread AMR.

Ongoing projects

Within the focus area, the Council on Ethics participates in the following projects:

Read more about the projects and progress in the focus area in the Council on Ethics' annual reports.