According to Zhitong Finance APP, after years of urging by Shareholders for Procter & Gamble (PG.US) to procure Forest Products in a more sustainable manner, this toilet paper manufacturer has now committed to a group of Shareholders to disclose more details about auditing its pulp suppliers.

The impact of logging on the environment has drawn the attention of Procter & Gamble and other major pulp users. Procter & Gamble previously stated it audits its pulp suppliers, but provided very little information.

Green Century shareholder advocate Andrew Shalit stated that the next step is for Procter & Gamble and investors to discuss the specifics of what the company will now disclose. Andrew Shalit believes that such disclosures are crucial for helping eco-conscious investors assess their holdings in Procter & Gamble and other companies that purchase pulp, especially pulp sourced from ecologically sensitive forests in Canada.

Earlier this month, Procter & Gamble stated that for competitive reasons, it keeps details of its global supply chain confidential. Procter & Gamble's competitor Kimberly-Clark (KMB.US) stated this year that its production goal is to not use any pulp from primary forests or naturally regenerated forests.

Andrew Shalit stated that Green Century hopes Procter & Gamble's supply chain is clear and sets an example for other companies relying on Canadian pulp, such as Home Depot (HD.US), in which Green Century also invests. Andrew Shalit added, "We believe that investors better understanding the depth and rigor of Procter & Gamble's oversight will benefit Procter & Gamble."

A spokesperson for Procter & Gamble stated, "We agree to share more information to reassure consumers. We are taking thorough and strong measures to protect forests for future generations." The spokesperson added that this information will be disclosed by mid-2025.

Procter & Gamble relies on third-party certification organizations, such as the non-profit Forest Stewardship Council (FSC), to ensure that the pulp it procures comes from sustainable sources. However, a media investigation found this year that these certifications have little effect in preventing forests that help absorb carbon emissions and mitigate climate change from being cut down.

Andrew Shalit stated that Procter & Gamble is committed to increasing information disclosure. Previously, Green Century and other investors holding nearly 1 billion dollars of Procter & Gamble shares planned to propose a resolution regarding the company's forestry practices at their annual meeting earlier this year. Andrew Shalit mentioned that Procter & Gamble's main shareholders, Robeco, BNP Paribas Asset Management, and Amundi Asset Management, were also involved in negotiations with Procter & Gamble.

Peter van der Werf, the Active Ownership Director at Robeco, stated: "Due to reliance on increasingly fragile ecosystems, companies expose themselves to procurement risks, which is why we encourage Procter & Gamble to explore how to strengthen its supply chain resilience in the long term." Adam Kanzer, Head of Americas at BNP Paribas Asset Management, remarked: "This enhanced information disclosure should provide investors with a clearer understanding of the role Procter & Gamble is playing."

Andrew Shalit noted that Green Century still hopes Procter & Gamble will reduce its reliance on Canadian forest pulp, as the investment firm believes decades of logging activities have threatened Canadian forests. Andrew Shalit stated: "They (Procter & Gamble) do not agree and have not set a target to reduce reliance. This is a topic under discussion." Procter & Gamble's website shows that the company purchases 3% of the pulp produced in Canada.

Andrew Shalit added that in an agreement with investors, Procter & Gamble stated it would invest 20 million dollars from 2025 to 2030 to develop alternative pulps and once again committed to protecting Canada's untouched forests.

However, according to TTOBMA Analyst Fraser Hart, this investment is just a fraction compared to the 0.86 billion dollars Procter & Gamble spends annually on pulp for its North American tissue and towel business.

Procter & Gamble also agreed to disclose more information regarding its lobbying activities in Canada.