Holding the board accountable for deforestation at Procter & Gamble (P&G).
Vote occurred October 12, 2021.
Humans have cut down 46% of the world’s trees. From 1990 to 2016, the world lost another 502,000 square miles of forest.1 Forest pulp and palm oil make up 12.5% of global greenhouse gas emissions and contribute to severe biodiversity loss.2
Why it's relevant
P&G makes Charmin toilet paper, Bounty paper towels, Puffs facial tissues, and other paper products.3 P&G refuses to stop sourcing raw material from the boreal forest4 — an important resource that covers 35% of Canada’s land mass5 — and the company continues to source 100% virgin fiber for their tissue products.6 The Natural Resources Defense Council (NRDC) gave Charmin an “F” for sustainability, putting pressure on P&G to improve.
The NRDC, the Sierra Club, and dozens of the descendants of P&G families7 urged shareholders to oppose the re-election of board member Angela Braly who oversees P&G’s Governance & Public Responsibility Committee.8 67% of P&G shareholders supported a proposal last year to address deforestation and intact forest degradation in its supply chains. Despite this, they allege P&G has failed to reduce its impacts on forests or address risks with unsustainable forestry practices.9
Last year was the first time in history a shareholder proposal related to forest loss passed.10 But fewer than 10% of shareholders are holding P&G’s board accountable for its perceived failure to make meaningful progress on the proposal. The campaign to vote against Angela Braly failed to achieve meaningful support. Braly was re-elected. At Engine No. 1, we believe it’s the role of active owners to hold boards and managers accountable, even when the spotlight is no longer on them.
Proposal failed with less than 10% support.