Environmentalists ask SEC to examine P&G's wood pulp supply chain claims

Follow us on Google News:
 Environmentalists ask SEC to examine P&G's wood pulp supply chain claims
Image source: ©2022 Kalkine Media®

By Jessica DiNapoli

NEW YORK, Nov 30 (Reuters) - An international environment advocacy group on Wednesday asked the U.S. Securities and Exchange Commission to evaluate whether Procter & Gamble Co's claims that its wood pulp suppliers practices help keep forests intact are misleading to investors.

The Natural Resources Defense Council (NRDC) said in a letter to the SEC that it has been scrutinizing P&G's disclosures and has concluded the company's statements that it prohibits the degradation of forests are "implausible."

The advocacy group wrote that P&G's claims could be materially misleading to investors because the company sources from pristine forests and from areas that are habitats for caribou.

P&G annually purchases more than one million metric tons of wood pulp, which comes from trees, to makes Charmin toilet paper, Bounty paper towels and Puffs tissues.

P&G has been under pressure from NRDC and other environmentalists for the last few years to use more recycled materials in its products.

P&G declined to comment. The SEC did not immediately respond to a request for comment. NRDC wants the SEC, the main U.S. markets regulator, to consider appropriate enforcement action or require P&G to update its statements to investors.

P&G said in September that for every tree used, at least two are re-grown, and that it uses satellite monitoring and audits to check on its forest sourcing.

The environmental group also said that P&G's claims are concerning because some investors take into consideration how the company ranks compared to its peers on its environment-related actions.

NRDC also said that P&G is overly reliant on third-party certifications for the sustainability of its wood pulp supply chain.

NRDC recently encouraged shareholders to vote against CEO Jon Moeller and two directors, Angela Braly and Patricia Woertz, at P&G's annual meeting. The directors and CEO were all voted in last month with more than 90% support. (Reporting by Jessica DiNapoli in New York)


The above content is directly sourced from Reuters under a contractual arrangement. The content is being provided as a convenience and for informational purposes only; and does not constitute an endorsement or approval by Kalkine Media of any of the products, services, or opinions of the organization or individual. The user is apprised that Kalkine Media bears no responsibility for the accuracy, legality, or content of Reuters, any external sites, or for that of subsequent links. The user is requested to contact Reuters directly for answers to questions regarding the content. Please note that Kalkine Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.