“A step backward”: P&G revokes pledge to tackle forest degradation

01 Aug 2023 --- Procter and Gamble (P&G) has removed its pledge not to buy wood pulp from degraded forests or contribute to forest degradation. The company announced the reversal at a recent ESG presentation for investors.

Investors and environmental groups have conveyed disapproval of P&G for no longer including its statement to “prohibit forest degradation” from its 2022 Forrest Update.

Pulp products are often used for its Charmin toilet paper, Bounty paper towels, Puffs tissues and packaging. The wood products come from Latin America, Europe, Canada and US suppliers.

“In an era where companies are moving forward on climate risk,” the change marks a “step backward,” Leslie Samuelrich, president of P&G investor Green Century Funds, told Reuters.

P&G promises not to contribute to deforestation but removed its commitment to not buy from degraded forests. P&G’s policy and deforestation law
The new forestry policy “consolidates” existing guidelines for paper packaging for its portfolio of products.

Shelley Vinyard of the Natural Resources Defense Council claimed to Reuters that environmental groups have a consensus that forest degradation can potentially threaten endangered species’ habitats. The Natural Resources Defense Council believes P&G’s wood pulp supply chain seems to degrade forests.

Moreover, the new forestry policy could contradict the EU deforestation law, enforced in June this year. The law tackles deforestation caused by growing soy, beef, palm oil, wood, cocoa, coffee, rubber and some of their derived products. Companies have 18 months from the date of enforcement to adopt the new rules. However, P&G maintains it will comply with the requirements.

The European Council and the European Parliament struck a provisional deal to minimize the risk of deforestation and forest degradation caused by expanding agricultural land to produce imported or exported commodities. The bodies agreed upon rules requiring operators to trace their products to the land where it was grown. Those sourcing from lands with a high risk of deforestation will face increased checks and possible fines.

“Operators and traders will have to prove that the products are both deforestation-free (produced on land that was not subject to deforestation after 31 Investors speculate over P&G not including forest degradation its most recent ESG report.December 2020) and legal (compliant with all relevant applicable laws in force in the country of production),” an EU official previously told PersonalCareInsights.

Deforestation promises
P&G included a commitment to “no deforestation” in its ESG presentation to investors this July. The company also says its policies will protect biodiversity, respect indigenous peoples’ rights and protect endangered species.

In 2020, most of P&G’s investors passed a non-binding resolution requesting that it assess how it could bolster efforts to eliminate deforestation and forest degradation in its supply chains.

The recent ESG report says it will publicly track allegations of supplier noncompliance to maintain grievance tracking among the company’s investors. Additionally, it will investigate allegations, document outcome progress on a grievance log and the failure to resolve satisfaction may result in removal from its supply chain.

The consumer goods cooperation also claimed 100% of its pulp supply is FSC, Sustainable Forestry Initiative and PEFC certified.

By Sabine Waldeck

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