Reducing animal testing through strategic investment

Despite implementation of regulations that aim to reduce animal testing over time, the practice remains widespread in the pharmaceutical, healthcare, and wellness industries. A new report commissioned by Stewart Investors aims to understand the methods used to reduce animal testing, identify best practices for transitioning to non-animal approaches and create visibility around these efforts. 

While there is general widespread endorsement of the 3Rs (replacement, reduction, and refinement) within legislation and company policies, several barriers hinder the implementation of alternatives to animal testing. 

“Our research provides insights on sustainability issues for responsible investors and tools they can use to support decision-making,” says Alison Atherton from the UTS Institute for Sustainable Futures (ISF).

“This research highlights the need for much greater transparency on animal testing and provides a guide for investors on how to talk to companies about it.”

Regulatory requirements, particularly significant in the pharmaceutical sector, often mandate animal testing for drug registration. Additionally, a lack of training and expertise in non-animal methodologies, combined with entrenched institutional preferences for standardised animal models, continues to stall progress.

The research assessed 21 companies selected by Stewart Investors, employing a structured questionnaire developed with expert input. The survey, refined through pilot testing with three companies, was distributed to investor relations teams and supplemented with publicly available company data.

Findings revealed a significant transparency gap. Many companies do not disclose detailed information about their use of animals and a substantial number failed to respond to the direct information requests.

“This project provides a baseline of evidence for how companies are currently taking steps to replace animal testing with alternatives and how they are disclosing this information. It can be used to track and monitor progress over time,” says Professor Rachel Ankeny from the University of Adelaide.

The widespread outsourcing of animal testing to Contract Research Organisations (CROs) complicates accountability due to varying regulatory standards. Few companies engage with regulators or other companies to promote non-animal methods, and none have specific targets for reducing animal testing or transitioning to non-animal approaches.

The report emphasises the pivotal role of investors in driving change. By advocating for increased transparency, setting clear transition targets where regulatory conditions allow, and encouraging collaboration with regulators, investors can help accelerate the adoption of non-animal research methods.

“As investors, we encourage companies to increase their transparency and reporting on their use of animal and non-animal testing. We would like them to disclose what they are doing to reduce the number of animals being used and detail their approaches to finding alternative methods. The Investor Guide gives us and other investors a practical framework to do that,” says Lorna Logan from Stewart Investors.