On Thursday at its company AGM, Woolworths faced a globally historic 4 shareholder resolutions on nature. This is the most nature-based resolutions faced by a company at an AGM anywhere in the world.
These resolutions were filed by ethical share trading platform SIX alongside prominent environmental organisations, and demonstrate the growing investor concern about the company’s ability to manage nature risk in their supply chain.
For the second consecutive year, Woolworths has copped the highest global vote for a nature-based shareholder resolution this year.
The 34% vote at the Woolworths AGM eclipsed this year’s previous high nature vote of 17% at American company PepsiCo.
SIX CEO Adam Verwey said:
“The Woolworths board has been sent a big message from its shareholders to take their nature risks seriously. How many years in a row must the shareholders deliver this message? This is two years in a row that the company has copped World record votes against the board and in favour of taking action that could save the Maugean skate from extinction."
Two of the resolutions voted on at today’s AGM target the company’s continued sourcing of farmed salmon from Macquarie Harbour in Tasmania despite the threat to the endangered Maugean skate. The resolutions have been co-filed by ethical share trading platform SIX alongside leading NGOs Environment Tasmania and Neighbours of Fish Farming. The largest group of filing shareholders live in Tasmania.
Shark scientist Dr. Leo Guida called out Woolworths during the meeting for underplaying the threat to the Maugean skate posed by salmon farmingby distorting the findings of a recent scientific report, and said the skate was still at very high risks of extinction.
The other two resolutions are in response to Woolworths walking back on its no deforestation commitments in relation to their beef and timber supplies. 13% of shareholders voted for Woolworths to reverse its decision to treat beef as low risk, indicating many investors rejected the board and proxy advisers, Glass Lewis and ISS, who did not support the resolution.
Coles decided Australian beef is at high risk of causing deforestation, and has removed responsible sourcing labels from its Tasmanian Own Brand salmon, showing its listening to investors' concerns. Coles still sells Macquarie Harbour salmon and is still facing a resolution to improve its sourcing practices.
The increased scrutiny on Woolworths increases the pressure on embattled CEO, Amanda Bardwell, who was brought in to revive the supermarket giant after years of poor financial performance, an ACCC investigation into price gouging, industrial disputes at warehousing centres, and falling profit.
Quotes
Jess Coughlan, Woolworths shareholder and campaigner at Neighbours of Fish Farming:
“Today the Woolworths board received a fresh delivery from shareholders. The responsibly sourced Woolworths seafood claim is tin-eared to what is unfolding in Tasmania’s polluted waterways. It’s time for Woolworths to make good on their promises to customers and fully disclose nature risk, and reassess stocking of any items in their supply chain that cause harm. The first priority must be assessing salmon farmed in Tasmania.”
Renowned businessman and former adviser to PM John Howard, Geoffrey Cousins, who appeared at the Woolworths AGM to address the Board directly:
“Woolworths is the least trusted brand in Australia. Trust is crucial for company value but Woolworths is playing fast and loose with its reputation. Coles has removed responsible sourcing labels from its Tasmanian salmon, and is treating beef as a serious risk to deforestation. If 1 million fish are dying on your watch, are mixed in with live salmon, and end up in Woolworths’ Own Brand salmon, how can you call yourselves the “fresh food people”? Coles got 1 instead of 4 shareholder resolutions. Coles didn’t get a complaint to the OECD. Woolworths is sticking its head under the water at time when Coles is beating it on sales and environmental performance.”
Shannon Akers, Australian Ethical’s Impact and Ethics Analyst, questioned Woolworths at the company’s AGM on its shift away from previous no-deforestation commitments for Australian beef, its lagging progress on animal welfare and cage-free egg commitments, and its lack of transparency and action on sustainable seafood sourcing.
“Woolworths appears to be choosing to compete on the lowest common denominator when it comes to environmental and ethical issues. In a highly regulated, fiercely competitive, and highly visible consumer industry, we are looking for evidence that Woolworths can step up and take a leadership role to rebuild trust with consumers, regulators, and shareholders. Elevating sustainability matters will help position Woolworths as a quality, premium retailer – one that leads and not follows.”
Header photo: L-R Phoebe Rountree (SIX), Kelly Roebuck (Environment Tasmania), Jess Coughlan (Neighbours of Fish Farming) and Geoff Cousins (businessman and former adviser to Prime Minister John Howard) at the Woolworths AGM at Bella Vista in Sydney.
