Kellogg Company: Pesticide Use in Agricultural Supply Chains
WHEREAS: Pesticide-based agricultural practices are creating growing risk to food companies. Scientists have connected pesticide exposure to cancer, developmental defects, and obesity, among a list of health harms. Consumers are increasingly demanding healthy, pesticide and GMO free foods, and food companies are seeing increased litigation around pesticide use. Pesticide-based farming methods degrade soil health, contributes to erosion, and is a major contributor to the loss of pollinator species essential to food production. Weeds and insects develop resistance to pesticides with associated crop losses of $1.4 billion per year.
To ensure long-term food supply reliability, it is imperative that food companies begin mitigating these risks. Kellogg does not disclose information on pesticide use practices in its supply chains, nor disclose whether it has set goals for pesticide reduction. While Kellogg reports nearly 100% progress toward “responsible sourcing” for potatoes, fruit, corn, and wheat, the evidence is contrary. Potatoes and many fruits are on a “dirty dozen” list for high pesticide residues; most corn is genetically engineered to be sprayed with pesticides; and wheat is commonly sprayed with glyphosate to dry the crop, frequently leading to pesticide residues on food products. Kellogg ignores that these crops are grown with significant pesticide use, raising the risk of misleading consumers.
Kellogg’s failure to address pesticide use in its supply chains creates legal and reputational risk for the company. In 2018 and 2019, juries in three glyphosate trials hit Bayer with multimillion-dollar awards for causing plaintiffs’ cancer. Consumer advocates have recently called out food companies for glyphosate residues in common food products, including Kellogg’s products; and consumer lawsuits have targeted manufacturers of foods containing such residues.
In a recent report comparing food manufacturers on pesticide risk management, Kellogg scored only 8 out of 30 possible points. In contrast, other major food companies have committed to tracking and reducing pesticide use:
• Sysco has reduced pesticide use by nearly 4.9 million pounds in 2015 and reports on the quantity of pesticides avoided annually.
• General Mills has established a regenerative agriculture initiative for which it will report pesticide use data beginning in 2020.
• Unilever phased out World Health Organization Class 1 pesticides for tea production and intends to phase out Class 2 pesticides by 2020.
BE IT RESOLVED: Shareholders request that the Board disclose at regular intervals, at reasonable expense and omitting proprietary information, available quantitative metrics on pesticide use in the company’s supply chain.
SUPPORTING STATEMENT: While the company has the discretion to determine the precise content of the report, meaningful disclosures would allow investors to assess pesticide use over time.
Resolution Details
Company: Kellogg
Lead Filers:
As You Sow
Year: 2020
Filing Date:
November 2019
Initiative(s): Pesticides
Status: Agreement Reached; Resolution Withdrawn