Procter & Gamble commits to clarifying wood pulp sourcing policies

Maker of Charmin toilet paper gets much of its raw materials from Canada’s pristine boreal forests

Aerial view of the boreal forestPhoto by Martin Poirier | Shutterstock.com

DENVER – Canada’s boreal forest includes some of the most majestic woodlands in the world — and some of the most endangered as well because of excessive logging. One product from logging, the wood pulp from those trees, is a key ingredient in extra-soft tissue paper. Now, Procter & Gamble (P&G), which uses that pulp in Charmin toilet paper, Bounty paper towels and other paper products, has taken a small step forward toward ultimately reducing its negative impact on the boreal forest.

P&G will clarify its policies, reiterating the company’s aim to eliminate using resources from intact forest landscapes and primary forests. The agreement came after discussions with the investment firms Green Century Capital Management° (Environment America’s affiliated mutual fund partner), AXA Investment Managers, BNP Paribas Asset Management and Robeco. In exchange, these investors have agreed to withdraw a shareholder proposal asking Proctor & Gamble to enhance its disclosures in relation to its efforts to mitigate risks to biodiversity and forest resilience.

Among the world’s largest and most important remaining forestlands, the boreal provides critical wildlife habitat for billions of birds and woodland caribou. After decades of logging, caribou populations, considered an indicator of overall biodiversity, have declined.

“We appreciate Proctor & Gamble’s response to calls to reduce its impact on the boreal forest. In the long-run, we’d prefer that the company eliminate entirely its sourcing from this forest, which houses so many animals and cleans our air. Better transparency is a good first step. When we can truly assess P&G’s policies, practices and impact, we’ll all know what the next steps should be.”

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About Green Century

°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (The Funds). The Green Century Funds are one of the first families of fossil fuel-free, environmentally responsible mutual funds. Green Century hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.

*As of 9.30.2024, Procter & Gamble comprised 0.72%, 1.60%, and 0.00%, of the Green Century Balanced Fund, the Green Century Equity Fund, and the Green Century International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the Green Century Funds. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.

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This information has been prepared from sources believed reliable. The views expressed are as the date of this writing and are those of the Advisor to the Funds.

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