P&G Agrees to Enhance Transparency in Supplier Audits

Procter & Gamble (NYSE:PG) has pledged to provide greater transparency regarding its wood pulp supplier audits. This move is a response to ongoing shareholder demands for the company to source its forest products more sustainably.

As the world's largest consumer goods manufacturer, the company admits to auditing its suppliers but has previously shared very few details about these processes. The environmental impact of its forestry activities has placed P&G and other major pulp consumers under increasing scrutiny.

Andrew Shalit from shareholder advocate Green Century confirmed that discussions are ongoing to finalize the details of new disclosures between P&G and its investors. Shalit emphasized the importance of such transparency for investors who are conscious of the environmental impacts of sourcing pulp from sensitive forests, particularly in Canada.

Earlier this month, P&G stated that it protects global supply chain information for competitive reasons. However, Green Century, which also has investments in Home Depot (NYSE:HD), advocates for P&G to set an example in supply chain transparency. This may potentially affect other companies reliant on Canadian pulp.

Shalit expressed optimism about the benefits of this move for P&G, stating, "We believe that a better understanding of the depth and rigor of P&G's audits by investors will be beneficial to the company." Discussions between P&G and shareholders are expected to further detail the scope of information to be disclosed to the public.