Baby Formula Disaster Failed to Dent Abbott Labs’ ESG Score
In fact, MSCI raised the health care company’s rating, citing better corporate governance
In February, Abbott Laboratories recalled popular formula brands such as Similac after US Food and Drug Administration inspectors found a deadly bacteria at a Michigan factory where the products were made.
Photographer: Ting Shen/BloombergSeveral months after the US government began investigating an Abbott Laboratories baby-formula plant for its connection to the deaths of at least two infants, the world’s most influential judge of corporate environmental, social and governance practices upgraded the company.
MSCI Inc., whose scoring system directs an estimated 60% of retail investments in ESG funds, raised Abbott’s rating on Aug. 25 two notches to A from BB. MSCI cited corporate governance improvements for the upgrade, as well as a broad changes to the way it rates companies that benefited larger health care firms, including Abbott.