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Today we’re looking at the latest in the investor activism saga - let’s turn a page and dive in.

Cancelling the Plastics

This week, a group of more than 180 investors, representing a capital base of over $10 trillion in assets under management, signed a joint statement - they called out 30 of the world’s largest grocery, retail, and consumer goods companies urging them to reduce their use of single-use plastics.

The joint statement comes in a long line of protests from activist investors over the last year ranging from interruptions at annual general meetings to threats of wholesale corporate takeover. In comparison, a join statement seems pretty tame, but with a purse this big these investors mean serious business.

The statement, coordinated by Investors for Sustainable Development (VBDO), targets intensive users of plastic packaging, particularly those in the fast-moving consumer goods and grocery retail sectors, including Coca-Cola, Costco, P&G, Nestlé, Unilever and Target, among others. It’s looking more and more likely that the humble plastic straw will face extinction.

Money Talks

Interestingly, instead of appealing to environmental concerns, this consortium of investors got straight to the point with their message: corporate reliance on plastics in these industries is just bad business.

These investors argue that the risks associated with plastic pollution have become too big to ignore. With more and more governments mandating companies to avoid single use plastics, the potential financial impact of continuing with the status quo could be very expensive to the bottom line and to a brand’s reputation.

The consortium sets out a series of expectations for the companies they are targetting:

• Commit to a near-zero level of single-use plastics

• Implement a reuse system for fast moving goods

• Support upcoming legislation to mandate these efforts

Investor activism is attempting to get ahead of the curve by highlighting the potential financial impact of a green transition. By forcing these companies to make these changes before they’re mandated, investors hope that these companies can reposition themselves as leaders and unlock new growth avenues as consumer behaviours begin to shift.

Until next time,

The Strawman