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Boston, February 16, 2022 – A noteworthy 59% of independent Tyson Foods shareholders voted in favor of a Green Century° shareholder proposal Thursday, which urged the company to reduce its use of plastic packaging. Independent shareholders include all shares that are not held by Tyson Limited Partnership or Tyson’s directors or executive officers.
Tyson uses significant amounts of hard-to-recycle plastic, such as polystyrene foam and flexible plastics like film and bags, yet the company does not report information about its packaging footprint to investors and has not set any goals around improving the sustainability of its packaging.
Investors are concerned that Tyson’s lack of action on plastics could pose regulatory risk to the company. Plastics legislation such as extended producer responsibility laws, which would make producers like Tyson financially responsible for the disposal of their packaging, and minimum recycled content mandates have been passed over the last year in Maine, Oregon, Washington, Connecticut and New Jersey.
Competitor Smithfield Foods recently set a goal to cut its use of virgin plastic in half by 2030. Other food companies and retailers, including Unilever, Mondelez, Target and Walmart, have set similar goals in the last few years.
Of all shareholders, 13% supported the proposal. The support from independent shareholders is approximate and was calculated under the assumption that Tyson Limited Partnership and Tyson’s directors and executive officers voted against the proposal.
Leslie Samuelrich, president of Green Century Capital Management, issued the following statement:
“A meaningful percentage of independent shareholders have made it clear that Tyson needs to take plastic-related risks seriously. To borrow from the company’s slogan, it’s what their shareholders deserve. The company should heed investor concerns and begin developing a strategy to reduce its plastic packaging footprint.
“Tyson is simply way behind in the food industry when it comes to sustainable packaging. It’s time for the company to catch up with industry standards, which have evolved greatly in recent years. This vote demonstrates investors’ growing understanding of that evolution and that plastic packaging can pose a material risk to companies.
“We will continue to urge leadership to take investor concern seriously and accelerate the company’s progress toward packaging sustainability.”
About Green Century Capital Management
°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (The Funds). The Green Century Funds are the first family of fossil fuel free, responsible, and diversified mutual funds in the United States. Green Century Capital Management hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of December 31, 2021, Tyson Foods, Inc. comprised 0.00%, 0.00%, and 0.00% of the Green Century Balanced Fund, the Green Century Equity Fund, and the Green Century International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the Green Century Funds. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
The percentage in favor was calculated by (i) dividing the number of votes in support of the proposal by (ii) the sum of the number of votes voted in support of and against the proposal. Abstentions and broker non-votes were not included in the calculation.
You should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. To obtain a Prospectus that contains this and other information about the Funds visit www.greencentury.com, email email@example.com, or call 1-800-934-7336. Please read the Prospectus carefully before investing.
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The Green Century Funds are distributed by UMB Distribution Services, LLC. 235 W Galena Street, Milwaukee, WI 53212. 2/22