Tulipshare has argued that the firm’s failure to address the issue is hurting shareholders, with P&G stock falling 22% this year. It added that Chain Reaction Research estimates P&G faces a $41bn reputational risk, which equates to nearly 14% of its market cap.
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In 2020, a shareholder proposal demanding P&G evaluate how it can eliminate deforestation and primary forest degradation from its supply chains won 67% of the vote. However, Tulipshare, who led the campaign for the proposal, have since claimed that “no progress has been made by the company since”. Concerns have emerged surrounding board suitability over the issue, with a new campaign calling for an independent chair to deliver on deforestation targets.