As ethical considerations continue to shape investment decisions, avoiding animal testing in nonmedical industries has become a priority for many investors. Understanding and implementing the principles of the 3Rs - Replacement, Reduction, and Refinement - is essential for navigating this landscape responsibly while still seeking profitable opportunities.

What is animal testing? 

It is estimated that over 115 million animals are used annually in laboratory experiments worldwide. However, the exact number remains unknown, as only a small proportion of countries collect and publish data on animal use in testing and research.

Animal testing, as defined by the Humane Society International, encompasses a range of experiments conducted on living animals for various purposes, including basic research, product safety assessments, and disease studies. These experiments can subject animals to significant physical and psychological distress. For instance, animals may be exposed to chemicals through methods like force-feeding, inhalation, or injection, resulting in illness, pain, and distress. Additionally, animals may be exposed to drugs, chemicals, or diseases at levels that cause adverse effects, including death.

Genetic manipulation is another aspect of animal testing, where animals may undergo procedures such as adding or removing genes to study their effects. Identification procedures like ear-notching or tail-clipping may also be performed on animals involved in experiments. Animals may experience physical restraint, either briefly for observation or examination purposes, or for prolonged periods during experimentation. Deprivation of food or water may be included in experimental conditions, further contributing to the animals' distress.

Surgical procedures are common in animal testing, often followed by a period of recovery. Animals may have wounds, burns, or other injuries inflicted upon them to study healing processes, and pain may be induced to study its physiology and potential treatments. Behavioural experiments designed to cause distress, such as electric shocks or forced swimming, are also conducted. Animals may undergo manipulations to create "animal models" of human diseases, ranging from cancer to depression. 

At the conclusion of experiments, animals are typically euthanised using methods like carbon dioxide asphyxiation, neck-breaking, or decapitation. These practices raise ethical concerns due to the suffering they inflict on animals. Organisations like the Humane Society International advocate for humane alternatives and the promotion of cruelty-free testing methods to reduce reliance on animal testing while ensuring safety and efficacy in research and product development.
 

What are the 3Rs (Replacement, Reduction and Refinement)?

The 3Rs (Replacement, Reduction, and Refinement) are globally recognised as essential elements of ethical, humane, and responsible animal care and utilisation for scientific purposes. 

• Replacement: Methods that permit a given purpose of an activity or project to be achieved without the use of animals.
• Reduction: Methods for obtaining comparable levels of information from the use of fewer animals in scientific procedures or for obtaining more information from the same number of animals. The number of animals used must satisfy good statistical design. The use of too few animals may invalidate experimental results and cause wastage of animals.
• Refinement: Methods that alleviate or minimise potential pain and distress in animals, and enhance animal wellbeing.

Building a Cruelty-Free Portfolio

Negative screening to avoid companies engaged in unnecessary animal testing practices and understanding the 3Rs are crucial starting points. However, investors might want to allocate their investments to companies transparently communicating their animal testing policies and actively exploring alternatives or can opt for engaging with companies through shareholder resolutions or letters urging them to adopt the 3Rs and commit to cruelty-free practices.

Fortunately, resources are available for building ethical investment portfolios. The market has seen an increasing number of investment funds and advisors specialising in cruelty-free investments, as well as independent certifications that verify no animal testing. Whereas, some companies are increasingly opting for transparency with demonstrably strong records on animal welfare and alternative testing initiatives.

Navigating animal testing in nonmedical industries requires a nuanced understanding of the 3Rs principles - Replacement, Reduction, and Refinement. By investing in companies that prioritise ethical practices and embrace alternatives to animal testing, investors can contribute to a more compassionate and sustainable future.