FOR IMMEDIATE RELEASE
Investors Secure Groundbreaking Corporate Commitments to Protect Forests, Reduce Carbon Emissions
Record-high number of shareholder resolutions filed in 2014 proxy season drive more aggressive action by top companies on climate-related issues
In response to nearly 150 climate-related resolutions filed by institutional investors during the 2014 proxy season, 20 major international corporations have committed to set goals to reduce greenhouse gas (GHG) emissions or sustainably source palm oil –a leading driver of global deforestation, which causes nearly 20 percent of global greenhouse gas emissions according to the Environmental Protection Agency. An additional 45 corporate commitments were secured related to sustainability reporting, energy efficiency and carbon asset risk.
A group of investors achieved major commitments from the following companies to source 100 percent fully traceable, responsibly produced palm oil: ConAgra, J.M. Smucker Co., Kellogg, General Mills, Mondelez, Panera and Safeway. The companies – food and beverage firms, supermarket companies and grocery store chains – include some of the top 10 purchasers in the $44 billion palm oil industry, which has proliferated the past few decades as palm oil has become the most widely used vegetable oil in the world. Over the last year, suppliers of more than 55 percent of the world’s palm oil committed to produce or trade 100% deforestation-free palm oil.
Investors that secured the palm oil commitments include: Clean Yield, Domini, Social Investments, Green Century Capital Management, The New York State Comptroller’s Office, Trillium, and members of the Interfaith Center on Corporate Responsibility (ICCR).
These recent corporate commitments, including today’s announcement from ConAgra, demonstrate a remarkable shift for the industry. Just days before ConAgra finalized the agreement with Green Century and the New York State Common Retirement Fund, ConAgra’s major supplier Cargill – the largest importer of palm oil into the United States – announced that it would no longer buy palm oil from suppliers engaged in deforestation. The momentum for change in the palm industry began building this year, when the Kellogg Co. first announced it would purchase only deforestation-free palm oil, and Wilmar – the world’s largest supplier of the commodity – adopted a zero deforestation policy. These commitments are expected to have a major impact on reducing carbon emissions as fewer carbon-rich forests and peatlands are cleared for new palm oil production. When such deforestation occurs, the sequestered carbon is released into the atmosphere, contributing to global warming.
Wilmar’s commitment alone, which was publicly supported by 40 investors in a letter organized by Green Century, will reduce CO2 emissions by an estimated 1.5 billion tons by 2020 – the equivalent of annual CO2 emissions from all of Central and South America.
“Palm oil is used in so many products we buy, but shoppers can’t see that it’s often harvested in ways that destroy rainforests and lead to climate change,” said New York State Comptroller Tom DiNapoli, whose office was a lead filer of the resolutions with ConAgra and Safeway. “The companies that agreed to our proposal and adopted new policies have protected themselves and their shareholders from the risk of being associated with unsustainable environmental practices.”
“Companies are on the hot seat to reduce their carbon pollution if they want consumer and investor support,” stated Leslie Samuelrich, President of Green Century Capital Management, which secured the first deforestation free commitment from Kellogg’s, and co-filed the shareholder proposals at ConAgra & Smuckers. “We expect more companies to follow suit and build sustainable supply chains and protect the environment upon which their businesses and all of us depend,” stated Samuelrich.
This year’s record number of climate-related resolutions demonstrates that investors are boosting their attention to the risks and opportunities that climate change poses to their portfolio companies. Investors – many of whom are members of Ceres’ Investor Network on Climate Risk (INCR) and the Interfaith Center on Corporate Responsibility (ICCR) – secured commitments from 13 companies relating to setting company-wide goals for reducing GHG emissions.
One of the strongest commitments came from Colgate-Palmolive, a leading consumer product company, following dialogue with Walden Asset Management. In its 2013 sustainability report, Colgate stated, “Given the urgent need for action on climate change…we consulted with Walden Asset Management to develop rigorous goals for the next phase of our strategy. We are pleased to announce our commitment to reduce carbon emissions on an absolute basis by 25 percent compared to 2002, with a longer‐term goal of a 50 percent absolute reduction by 2050 compared to 2002. These goals…will allow us to play our part in limiting global warming to 2°C, as recommended by the Intergovernmental Panel on Climate Change."
“The successes this season show that when investors set the bar high, the companies in their portfolios strive harder to integrate sustainability into their business practices,” said Mindy Lubber, president of Ceres and director of the Investor Network on Climate Risk, which helped coordinate the filing of the resolutions. “These productive investor-company dialogues often help companies build a positive reputation and achieve high returns on investments in greenhouse gas reduction initiatives.”
Other commitments resulting from the 2014 proxy season include:
- 15 companies agreed to issue comprehensive, annual sustainability reports in response to resolutions from a variety of investors.
- Five companies committed to work with their key suppliers to get the suppliers to issue annual sustainability reports in response to resolutions filed by the New York City Comptroller’s Office.
- Seven companies agreed to enhance energy efficiency in response to resolutions from the California State Teachers Retirement System.
For more information and to view these shareholder resolutions, visit http://www.ceres.org/investor-network/resolutions.
Ceres is an advocate for sustainability leadership. Ceres mobilizes a powerful coalition of investors, companies and public interest groups to accelerate and expand the adoption of sustainable business practices and solutions to build a healthy global economy. Ceres directs the Investor Network on Climate Risk (INCR), a network of over 100 institutional investors with collective assets totaling more than $13 trillion. Ceres also directs Business for Innovative Climate and Energy Policy (BICEP), an advocacy coalition of nearly 30 businesses committed to working with policy makers to pass meaningful energy and climate legislation. For more information, visit www.ceres.org or follow on Twitter @CeresNews.