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Investor rebellion at Procter & Gamble: investors take (their) companies to task

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Summary

A group of institutional investors shows how shareholders can exert positive pressure on their company. BlackRock and other investors, for example, are taking the consumer group Procter & Gamble to do more to protect the forests.

More active ownership is needed

What is it about

It is nothing new for shareholders to speak out at general meetings and voice their criticism. But the fact that major investors are exerting pressure on management and holding them to account is new. Especially when it comes to climate protection.

When institutional investors such as BlackRock take the lead and force companies such as Procter & Gamble to rethink, this is remarkable. The biggest producer of consumer goods has come under criticism because of its high consumption of palm oil and the associated deforestation.

Why is this important

As a result of this investor rebellion, Procter & Gamble will have to deal more intensively with the protection of the forests. The fact that heavyweights such as BlackRock are more intensively concerned with environmental protection and exercise their voting rights surprised even environmental movements, which had been putting pressure on these institutional investors for years.

The Globalance View

We are also aware of our responsibility as investors and are in dialogue with our companies about the voting rights we exercise, participation in engagement pools and direct contacts.

We are not invested in Procter & Gamble. Nevertheless: Palm oil is a raw material that has been causing enormous environmental damage for a long time. We therefore only select companies whose palm oil comes from certified cultivation and follow the development of substitute products based on an industrial fermentation process with interest.

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