Boston, May 2, 2024 – Green Century Capital Management presented its proposal for biodiversity and nature reporting at PepsiCo’s annual general meeting on May 1. In response, approximately 18% of company shareholders voted in favor, bucking a strong push by PepsiCo management against the initiative.
“We’re gratified that a significant number of PepsiCo shareholders stood up for nature,” said Leslie Samuelrich, president of Green Century. “PepsiCo relies on nature for all the products it sells. We hope they hear this clear message from shareholders: the company should account for its reliance on nature, it should disclose its impacts, and it should reduce those impacts wherever possible.”
Strong support leading into the meeting
Ahead of the vote, several large investment groups voiced their support for the proposal, including Norges Bank Investment Management, Allianz Global Investors, and Storebrand Asset Management. The proposal reflects an increased understanding by investors that biodiversity and nature must be considered when evaluating company performance.
“We used to take nature for granted, but we don’t have that luxury anymore,” said Andrew Shalit, shareholder advocate at Green Century. “Companies have to ensure their operations have a positive impact on nature. Investors need comprehensive biodiversity reporting through accepted frameworks to have confidence in a company’s behavior.”
Yesterday’s vote was the first time a proposal requesting a comprehensive biodiversity report has been voted on by shareholders of a publicly traded company. Shareholder votes are advisory, and a vote at this level will help ensure the issue stays on the company agenda.