Last month, Post Holdings, Inc. took an important step to help tackle the climate crisis and align with investor expectations on greenhouse gas emission reductions from direct operations and supply chains, according to institutional investors who reached an agreement with the packaged goods giant.
Post Holdings, one of the largest public packaged food companies and creator of popular cereal brands such as Raisin Bran and Shredded Wheat, committed to reduce scope 1 and 2 greenhouse gas emissions by 30% by 2030 in direct operations. They also agreed to develop a scope 3 emissions reduction goal and adopt a “no deforestation” policy in 2022 within their supply chain covering key commodities. Notably, Post plans to assess their water impact this year using the Aqueduct tools from the World Resources Institute.
The new commitments come after investors agreed to withdraw a proposal filed by Sister Sue Ernster of the Franciscan Sisters of Perpetual Adoration and a member of Seventh Generation Interfaith Coalition for Responsible Investment. The proposal asked Post to increase the scale, pace, and rigor of its efforts to reduce its total contribution to climate change.
“As shareholders, we are pleased that Post is taking positive steps to address its climate impact,'' said Sister Ernster. “While this is the beginning of their climate action journey, we are encouraged by Post's commitment to reduce its greenhouse gas emissions across its own operations and supply chain.”
“We are encouraging Post to build on these commitments by pursuing certified science based targets to ensure investors that the company is living up to their responsibilities,” said Natalie Wasek, Shareholder Engagement Manager of Seventh Generation Interfaith.
This effort was supported by the sustainability nonprofit organization Ceres as part of Food Emissions 50, an investor-led initiative to accelerate progress towards a net zero future in the food and agriculture sector. Food Emissions 50 investors are engaging 50 of the highest-emitting public food companies in North America to improve greenhouse gas emissions disclosures, set ambitious emission reduction targets, especially for scope 3 supply chain emissions, and implement credible climate transition action plans in line with the Paris Agreement.
“Ceres created the Food Emissions 50 Campaign to help address the challenge that most of a food company's climate impact stems from how land is used, including deforestation and agricultural production,” said Julie Nash, senior program director for food and forests at Ceres. “We view Post’s scope 1 and 2 emissions reduction goal as a good start and hope to see Post Holdings follow through on its commitment to tackle the more challenging scope 3 emissions and to root these targets in climate science.”
Seventh Generation Interfaith Coalition for Responsible Investment (SGI) is a coalition of 36 faith-based and values-driven institutional investors, located in the midwestern United States, who view the management and stewardship of their investments as a powerful catalyst for social change. SGI builds a more just and sustainable world for those most vulnerable by integrating social and environmental values into corporate and investor actions. Visit https://seventhgenerationinterfaith.org/ for more information.
Ceres is a nonprofit organization working with the most influential capital market leaders to solve the world’s greatest sustainability challenges. Through our powerful networks and global collaborations of investors, companies and nonprofits, we drive action and inspire equitable market-based and policy solutions throughout the economy to build a just and sustainable future. For more information, visit ceres.org and follow @CeresNews.