General Mills AGM
General Mills receives second plastics-related shareholder proposal in three years
GIS 0.00%↑ filed their 2024 DEF 14A this evening and will face two shareholder proposals at the AGM on September 24.
The first, a proposal regarding “Disclosure of Regenerative Agriculture Practices Within Supply Chain”
The second, a “Plastic Packaging” proposal.
This second shareholder proposal is noteworthy as a “Plastic Packaging” proposal from the same proponent, Green Century, garnered majority support (56.5%) from investors at the 2022 AGM.
So, what’s different?
Specific Goals and Targets:
2022 Proposal: It suggests that the report should include measurable targets for reducing absolute plastic use, reducing virgin plastic use, and increasing post-consumer recycled plastic content.
2024 Proposal: This proposal is more specific, suggesting that General Mills should set a target to reduce plastic use, increase refillable packaging, and redesign remaining product packaging for consistent recycling or composting.
Criticism of "Store Dropoff" Labels:
2022 Proposal: Does not mention any concerns related to "Store Dropoff" or other recycling labels.
2024 Proposal: It explicitly criticizes the reliance on "Store Dropoff" labels, which are often not effective in ensuring that packaging is recycled. It also references the California State Attorney General’s investigation into the use of such labels.
Regulatory Context:
2022 Proposal: It mentions the growing regulatory landscape, including the adoption of producer responsibility laws in states like Maine and Oregon.
2024 Proposal: The 2024 proposal goes further, discussing recent regulatory developments in the EU and potential financial risks for corporations related to single-use plastic, signaling heightened global regulatory pressures.
Reference to Competitors:
2022 Proposal: Mentions competitors like Mondelez, Kraft Heinz, Conagra, and Kellogg, highlighting their commitments to plastic reduction, to underscore the competitive risk for General Mills.
2024 Proposal: Continues to mention competitors but is more pointed, listing additional companies like Nestle, PepsiCo, and Coca-Cola, which have committed to reducing new plastic use, emphasizing the growing industry trend towards sustainability.
The repeat proposal, although different in its specificity, suggests that Green Century was likely dissatisfied with the company’s responsiveness to the 2022 shareholder proposal and the sides couldn’t agree on a way forward.
We note that 2022 was a substantially different time for E&S shareholder proposal support, but will follow-up with the results later in September.
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