By Procter & Gamble (NYSE:PG) has committed to providing greater transparency regarding its wood-pulp supplier audits. This move comes as a response to persistent demands from shareholders for the company to source forest products in a more sustainable manner.
The company, which is the largest consumer goods manufacturer globally, has acknowledged conducting audits of its suppliers but has previously shared minimal details about these processes. The environmental impact of logging has placed P&G and other significant pulp consumers under increased scrutiny.
Andrew Shalit from Green Century, a shareholder advocate, confirmed that discussions are underway between P&G and its investors to finalize the specifics of the new disclosures. Shalit emphasized the importance of such transparency for investors who are conscious of the environmental implications of their investments, especially concerning the procurement of pulp from Canada’s vulnerable forests.
Earlier this month, P&G mentioned protecting its global supply chain information for competitive reasons. However, Green Century, which also holds investments in Home Depot (NYSE:NYSE:HD), is advocating for P&G to set a precedent in supply chain clarity. This could potentially influence other companies that depend on Canadian pulp.
Shalit expressed optimism about the benefits of this move for P&G, stating, “We think it will benefit P&G for the depth and rigor of their oversight to be better understood by investors.” The forthcoming discussions between P&G and the shareholders are expected to further detail the extent of the disclosures that will be made public.
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