By Jessica DiNapoli
NEW YORK (Reuters) – Procter & Gamble has promised a group of shareholders it will disclose more details about how it audits wood-pulp suppliers, the investors told Reuters, after shareholders pushed the maker of Charmin toilet paper for years to source forest products more sustainably.
The world’s biggest consumer products maker has previously said it performs audits but provided little information about them. Logging’s impact on the environment has raised scrutiny of P&G and other major pulp users.
The next step is for P&G and the investors to discuss specifics of what the company will now disclose, said Andrew Shalit, a shareholder advocate at Green Century. Shalit sees such disclosures as important to helping environment-minded investors evaluate their holdings in P&G and other companies that buy pulp, particularly from Canada’s ecologically sensitive forests.
The maker of Bounty paper towels said this month it guards details of its global supply chain for competitive reasons.
Green Century wants clarity on P&G’s supply chain to set an example for other companies that rely on Canadian pulp, such as Home Depot, in which Green Century also invests, Shalit said.
“We think it will benefit P&G for the depth and rigor of their oversight to be better understood by investors,” he said.
Home Depot did not respond to a request for comment.
“We agreed to share additional information to reassure consumers of the thorough and robust steps we are taking to protect forests for future generations,” a P&G spokesperson said, adding that the information would be available in mid-2025. “It is important to note that P&G aims to protect primary forests, and that for every tree used in our paper products, at least two are regrown.”
The company relies on third-party certifiers, such as the nonprofit Forest Stewardship Council, to ensure its wood pulp is sourced sustainably. But a Reuters investigation this year found the certifications do little to stop clear-cutting of forests that absorb carbon and slow climate change.
P&G made the commitment for greater disclosure after Green Century and other investors holding nearly $1 billion in shares collectively planned to put forward a resolution about the company’s forestry practices at its annual meeting earlier this year, Shalit said. Major P&G shareholders Robeco, BNP Paribas Asset Management and AXA Investment Managers were also involved in talks with P&G, he said.
“By relying on an increasingly fragile ecosystem, companies expose themselves to sourcing risks,” said Peter van der Werf, Robeco’s head of active ownership. “This is why we encouraged P&G to explore how its vision for fiber resilience could be strengthened in the long run.”