|What metrics or targets has the company set with regard to: – Reduction in GHG emissions (both absolute and intensity) – Reduction in methane emissions or other criteria pollutants, if applicable – Water usage or water recycling targets – Energy efficiency and energy reduction targets – Waste management efforts – Land-use practices and /deforestation prevention|
|The Procter & Gamble Company||2020||US||Vote Bulletin||https://www.blackrock.com/corporate/literature/press-release/blk-vote-bulletin-procter-and-gamble-oct-2020.pdf|
BIS regularly reviews P&G’s governance structure and risk profile. BIS has held multiple engagements with the company’s board and management in recent years, in which we have discussed a range of material issues that, in our view, drive long-term shareholder value.
During our most recent engagement with P&G, we discussed the company’s response during the COVID-19 pandemic, the shareholder proposals on the company’s proxy statement, and human capital management, as well as recent updates to the company’s board structure.
- Shareholder Proposal
- Report on Efforts to Eliminate Deforestation
- Request is clear, material and company should be doing more
The proposal requests a report assessing if and how P&G could increase the scale, pace, and rigor of its efforts to eliminate deforestation and the degradation of intact forests in its supply chains. The proposal places special attention on the company’s use of palm oil and forest pulp.
While BlackRock recognizes the company’s efforts to date towards enhancing their sustainability and monitoring disclosure reports, we determined that there is room for P&G to improve the frequency and depth of disclosure.
BlackRock determined that incorporating detailed TCFD- and SASB-aligned metrics in its annual Citizenship Reports would be useful for investors, and other stakeholders, to understand how P&G is identifying, assessing, and managing climate-related risks and opportunities, in particular, potential material weaknesses in their palm oil supply chain management or the forestry management and harvesting practices of their local suppliers.
As detailed in P&G’s Wood Pulp Procurement Policy,2 P&G purchases wood pulp for tissue and absorbent hygiene products. P&G does track and report annually the amount of wood pulp it purchases from suppliers, which is 100% certified by a leading third-party certification system.3 However, in our view P&G could further improve its responsible forestry disclosures by reporting metrics and targets in alignment with the TCFD framework and SASB standards.