Kroger shareholders voted down a proposal for the company to issue a report detailing its potential to reduce plastics and single-use packaging and transition to reusables. At Thursday’s annual shareholder meeting, 31.8% of shareholders voted in favor.
Kroger recommended in its proxy statement that shareholders reject the proposal, saying it would not be “additive at this time,” citing “progress” through existing sustainable packaging goals and initiatives as well as recycling programs. Shareholder advocacy nonprofit As You Sow submitted the resolution and said Kroger “has fallen behind its peers in plastic packaging reductions,” calling out Unilever, Starbucks, Coca-Cola and Pepsi as leaders in the space. The organization also said Kroger “is notably absent from the Ellen MacArthur Foundation’s Global Commitment to reduce plastic pollution.”
Kroger has a goal for all of its brands’ products to have recyclable, reusable or compostable packaging by 2030, and that the packaging portfolio collectively contains at least 10% recycled content. Last year the company completed a baseline assessment, it reported, which found that 40% of the packaging met Kroger’s own definition of recyclable and included 14% post-consumer recycled content. The assessment will inform its roadmap to 2030, which will also take into account changes based on municipal or state legislation.
Kroger has worked with Loop to try reusable packaging and has partnered on Closed Loop Partners’ Beyond the Bag Initiative to replace single-use plastic options.
As You Sow has seen similar proposals fail to pass at other retailers and restaurants this season. Kroger’s outcome mirrors earlier results at Amazon, Restaurants Brands International and Yum Brands, which As You Sow has noted each received around one-third of votes in favor.
As You Sow also filed resolutions at beverage supplier Constellation Brands, which has its shareholder meeting July 18, and beauty company Coty, which has not yet filed its proxy statement. In March, As You Sow said it withdrew a shareholder proposal at McDonald’s after that company pledged to publish a comprehensive report in early 2024 on opportunities and risks with switching to reusable packaging.
