P&G Faces Criticism Over Withdrawn Forest Pledge

P&G Faces Criticism Over Withdrawn Forest Pledge

THE WHAT? Procter & Gamble (P&G) has removed a pledge not to buy wood pulp from degraded forests from its corporate policy, which has led to criticism from environmental groups and investors. The company’s products, including Charmin toilet paper and Bounty paper towels, rely on wood pulp from various locations worldwide.

THE DETAILS?  The adjustment to P&G’s Forest Commodities Policy is viewed as a regression in addressing climate risk, as it may conflict with an upcoming European Union law banning goods associated with deforestation and forest degradation. P&G insists that it will comply with this future legislation.

THE WHY? Despite P&G citing an undefined standard for “forest degradation” by the United Nations Food and Agriculture Organization as the reason for their policy change, environmental NGOs and investors broadly agree on what constitutes forest degradation. The move has intensified scrutiny over P&G’s sustainability efforts as calls for more decisive actions against deforestation and forest degradation in their supply chains increase.