Biotechnology Policy
Investment Guidelines
Portfolio 21 supports industrial applications of biotechnology and biomimicry (the process of modeling industrial systems on biological or ecological ones). We will also consider companies involved in medical applications of biotechnology and biopharmaceuticals.
Portfolio 21 supports sustainable agriculture, biodiversity, and local farmers and does not accept companies with high exposure to genetic engineering for agricultural applications. If a company (a food retailer, for example) is not directly involved in genetic engineering, but sells products containing genetically modified organisms (GMOs), Portfolio 21 will evaluate the company's activities and policies regarding biotechnology. We will not invest in companies that generate a significant proportion (more than 5%) of revenues from genetic engineering for agricultural applications.
In order to pass Portfolio 21's Biotechnology Policy each of the following four criteria must be met.
- Knowledge—Thorough information must be available and risks must be understood and mitigated.
- Transparency— A willingness to engage with stakeholders on the employment of specific biotechnology applications is required. Transparency concerning a company's position as it relates to regulatory and/or voluntary initiatives is of equal importance; for example, support of labeling initiatives and legislation.
- Fairness—There must be a fair and equitable allocation of profits to local communities from which genetic material was obtained (no biopiracy). The local laws must be adhered to and local cultures and resources must be protected.
- Containment—Genetic and biological material must be managed and contained to high standards.
The risks of biotechnology
Biotechnology is a broad term that is used to describe a variety of applications and processes. Formally, biotechnology is "the industrial use of living organisms or their components to improve human health and food production." Genetic engineering, on the other hand, focuses on the manipulation of genetic material (the DNA) and results in what is termed a genetically modified organism. Genetic engineering is a type of biotechnology, but not all biotechnology involves genetic modification.
For our analysis, we have divided biotechnology into four main applications:
- Industrial Biotechnology: This is the use of living organisms or their components to facilitate industrial processes. One example is Novozyme's use of enzymes in detergents. In this case, genetically modified organisms are used to produce enzymes that are then separated from the GMOs and added to the final product. As a result, the detergents contain no genetically modified organisms but have the advantages of improved performance (through the catalytic action of the enzymes).
The application of industrial biotechnology in conventional manufacturing has resulted in lower production costs, less waste, reduction of air emissions, less energy use, and fewer toxic raw material inputs. Concerns regarding this technology revolve mainly around the selection of microorganisms used for industrial bioprocessing or for the production of industrial enzymes. Careful selection is necessary in order to avoid the use of pathogenic organisms (life forms that cause human disease). We expect companies that utilize industrial biotechnology to comply with environmental and health regulations to ensure their microorganisms are sterilized or inactivated after processing. - Biopharmaceutical Development and Production: Within the pharmaceutical sector there are 2 dominant technologies, conventional pharmaceuticals and biopharmaceuticals. Drugs that have sources that are chemical or non-biological in nature are known as pharmaceuticals; drugs that have biological sources and are manufactured using biotechnology (involving use of live organisms), are known as biopharmaceuticals. Genentech, for example, is a biopharmaceutical company that makes a cystic fibrosis drug that is derived from genetic material.
Biopharmaceuticals offer several advantages over traditional pharmaceutical drugs, including high rates of effectiveness and potent action, fewer side effects, and the potential to cure diseases rather than just treating symptoms. Despite these advantages, there is also a growing concern over the potential environmental contamination from rDNA molecules (a form of synthetic DNA). - Medical / Human Genetic Engineering: There are two main categories of human genetic engineering. The first is aimed at improving or preventing genetic disorders, and the second is non-medical applications, for example, manipulating the hair or eye color of a child.
Gene therapies are becoming increasingly common for treatment of diseases and health conditions, however, the risks of these treatments are largely unknown. Gene therapy involves the use of a virus to carry a modified DNA segment into the patient's cells and the virus itself could potentially infect the patient. Additionally, there are concerns that medical applications involving genetic engineering may produce cancer-causing genes from normal human genes. In 1999, Jesse Gelsinger became the first known victim of gene therapy. It is still unclear if Jesse Gelsinger's death was due to errors in the treatments he was given, or due to the gene therapy itself, but this case illustrates the risks and uncertainties regarding the safety of medical/human applications of biotechnology. - Agricultural Applications: Examples of agricultural applications of biotechnology include the modification of crop seeds to become "Roundup ready" (better able to withstand the Roundup herbicide while surrounding weeds are killed), the modification of crop seeds to include Bt genes (making crops more resistant to pests), and the modification of crop seeds aimed at improving nutritional value.
We believe biotechnology is not a productive approach to achieving sustainable agricultural systems. Furthermore, we agree with the Union of Concerned Scientists' definition of sustainable agriculture: "...one that is both highly productive and protective of the natural resources on which future productivity depends." Genetic engineering of agricultural crops to introduce traits such as herbicide tolerance, insect tolerance and virus tolerance does not fit this definition. Moreover, such trait modifications are passed to the plant's seeds, making the risks of genetic contamination high when these crops are grown in open fields. For more information on GMOs and agriculture, we recommend Union of Concerned Scientists' Risks of Genetic Engineering.
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