Investor forces Deal for Consumer Products Giant to Hasten Plan to Find Pulp Alternatives

Supply Chain Digest Says...   On its web site, P&G now says that it is testing two new Charmin products, one made with plant-based fiber and another with bamboo. What do you say? Click here to send us your comments   Click here to see reader feedback

Consumer products giant Proctor & Gamble has agreed to change its sourcing practices for wood pulp, under pressure from environmental groups and some investors.

There was news from Reuters this week that Cincinnati-based P&G will reduce the amount of pulp it sources from certain forests in Canada, and develop a plan to reduce purchases of the raw material from woodlands.

The wood pulp is a key ingredient in high-revenue P&G products such as toilet paper and paper towels.

Reuters reports the deal was struck by the company with one of its investors last month, a firm called Green Century Capital Management. Prior to that, P&G had been facing criticism from some environmental groups in part because it is allegedly behind other consumer poducts peers in using recycled paper and fibers in its products in place of logged wood pulp.

The environmental groups believe pulp harvesting is bad for the environment. P&G has argued that paper products made from pulp are softer and absorb better than more green alternatives.

It also says that all of its pulp comes from sustainably managed forests and tree plantations. The company also says all premium toilet paper brands are made only using logged pulp.

Reuters notes P&G paper products rival Kimberly Clark earlier committed to reduce its use of forest fibers, which include pulp. Its Scott’s brand toilet paper is made with 100% recycled material.

Another P&G competitor Unilever, sells a green brand called Seventh Generation that uses 100% recycled paper to make toilet paper, paper towels and tissues.

P&G's agreement with Green Century Capital Management was filed July 18 with the US Securities and Exchange Commission.

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On its web site, P&G now says that it is testing two new Charmin products, one made with plant-based fiber and another with bamboo.

Meanwhile, P&G faces an upcoming shareholder vote at its annual meeting in October on Green Century's call to execute its policy on deforestation more rapidly.

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