July 17, 2014
BOSTON, MA – July 17, 2014 – Shareholders of J.M. Smucker today praised the company’s updated policy on the sourcing of palm oil, released as part of its 2014 corporate social responsibility report.
“Smucker’s updated commitment provides greater detail and accountability to its 2013 commitment to source palm oil exclusively from members of the Roundtable on Sustainable Palm Oil (RSPO). The company has joined the ranks of many of its industry peers who recognize that they must also go beyond RSPO’s standards to ensure that their purchases do not result in mass deforestation and labor abuses in the supply chain,” said Shelley Alpern, Director of Social Research and Shareholder Advocacy at Clean Yield Asset Management.
J.M. Smucker produces and markets branded foods, primarily in the U.S. Valued currently at $10.8 billion in market capitalization, the company’s prominent brands include Folgers and Dunkin’ Donuts coffee, Smuckers’ jams and jellies, Jif peanut butter, and Crisco.
The updated policy follows the withdrawal of a shareholder proposal filed by Clean Yield Asset Management and Green Century Capital Management. Key elements of the company’s policy include a time bound commitment for ensuring that purchased palm oil can be traced back to plantations that are independently verified as meeting the following criteria:
- No development in high carbon stock forest areas or high conservation value areas
- No burning to clear land for new planting or re-planting
- No new development on peat lands, and the application of best management practices for existing plantations on peat lands, including restoration when feasible, and,
- Including smallholders into the supply chain and respecting land tenure rights, including the rights of indigenous and local communities to give or withhold their free, prior, and informed consent to all new development or operations on lands to which they hold legal, communal, or customary rights.
“Purchasing palm oil from suppliers engaged in the destruction of some of the world’s most biodiverse and carbon rich ecosystems not only threatens the health of our planet, but also puts Smucker’s reputation as a responsible company at risk,“ stated Lucia von Reusner, Shareholder Advocate at Green Century Capital Management, which co-filed the shareholder proposal with Clean Yield Asset Management. “By pledging to secure deforestation-free palm oil, Smucker is not only protecting the environment, but its brand and shareholder value as well. We urge the company to rapidly implement its commitment to help end deforestation for palm oil.”
In recent months, a wave of consumer brands companies have pledged to work directly with their suppliers to ensure that the palm oil in their products is not linked to tropical deforestation or human rights abuses. These commitments come in response to widespread recognition that current RSPO certification standards are insufficient for preventing high risk and controversial environmental and human rights impacts in the palm oil supply chain. The trend began after palm oil suppliers Wilmar* and Golden Agri-Resources,* which bring the majority of the world’s palm oil to market, announced measures to strengthen their own sourcing policies to go beyond RSPO requirements. Following their lead, companies including Nestle,* Unilever,* Johnson & Johnson,* Colgate-Palmolive,* and PepsiCo* have announced strengthened palm oil commitments.
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Green Century Capital Management is an investment advisory firm that manages a family of fossil fuel free mutual funds. Founded in 1991 by a network of non-profit organizations, the state Public Interest Research Groups (PIRGs), Green Century leads an effective shareholder advocacy program to convince companies to establish and implement environmental policies that protect our land, water and air.
*As of March 31, 2014, The JM Smucker Company; Unilever; Colgate-Palmolive Company; and PepsiCo, Inc. comprised 0.17% and 1.24%; 0.00% and 1.17%; 0.97% and 0.00%; and 2.07% and 0.00% of the Green Century Equity Fund and the Green Century Balanced Fund, respectively. Other securities mentioned were not held in the portfolios as of March 31, 2014. The holdings of the Green Century Funds may change due to ongoing management of the Funds. References to specific investments should not be construed as a recommendation of a security by the Funds, their advisor, administrator, or distributor.
Stocks will fluctuate in response to factors that may affect a single company, industry, sector, or the market as a whole and may perform worse than the market. Bonds are subject to risks including interest rate, credit, and inflation. The Funds’ environmental criteria limit the investments available to the Funds compared to mutual funds that do not use environmental criteria.
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This information has been prepared from sources believed to be reliable. The views expressed are as of the date of this writing and are those of the Advisor to the Funds.
The Green Century Funds are distributed by UMB Distribution Services, LLC. 7/14
Photo credit: Achmad Rabin Taim from Jakarta, Indonesia