Food manufacturers have a critical role to play in sustainable food systems. As major purchasers of commodity crops, these companies wield immense power to shift the way food is grown. Some, such as Kellogg and General Mills, are starting to use that power to drive positive change after persistent shareholder pressure. 

In 2019, As You Sow published the “Pesticides in the Pantry” scorecard, examining what food manufacturers are currently doing to address the pesticide problem. The majority of companies scored just a few points (out of 30 possible), demonstrating that the industry has a long way to go to ensure investors that companies are taking responsibility for their agricultural supply chains.

In recent years, pesticides have raised growing concerns for consumers. Scientists are increasingly tying exposure to these chemicals to myriad negative health impacts, including cancers, endocrine disruption, and neurological damage. The more that toxic pesticides are used in agriculture, the greater our collective exposure through air, water, and food. Glyphosate-laced rain in Mississippi indicates just how significant the pesticide problem has become.

Investors are working with food manufacturers to decrease risk across the food chain, improve relationships, and protect stakeholders, including farmworkers, nearby communities, and the environment. Reputational risk is a growing concern. Consumer advocates continuously test food products for pesticide residues, publish test results, and call on major food companies to take action. Kellogg, General Mills, and Quaker (PepsiCo) all have popular breakfast products that have been called out by such groups. Pesticide residues in food also present a potential legal risk to companies when products are marketed as safe, natural, or wholesome. 

Investors have engaged with Kellogg for years on the pesticide issue, highlighting the importance of addressing glyphosate residues in food products. At the beginning of 2020, Kellogg made a landmark commitment to phase out pre-harvest glyphosate from its major supply chains for oats and wheat. This is an important step forward and one that other food makers should consider as they confront the pesticide problem.

General Mills has also engaged with investors on pesticides in supply chains. As You Sow filed a shareholder resolution with the company in 2018 that received over 30 percent support, asking for meaningful disclosure on pesticide use and pollinator impacts. It filed a similar resolution in 2019, which was withdrawn when General Mills stepped up and announced an initiative to promote regenerative agriculture practices in its supply chain for oats. Regenerative agriculture is a holistic system that aims to reduce the use of pesticides (and includes mechanisms for measuring progress) and improve biodiversity, soil health, and farmer profitability. 

As climate change increasingly threatens the integrity of crop supply chains, investors are asking food manufacturers to develop insurance through comprehensive sustainability efforts. Companies can mitigate risks while also winning over consumers by investing in practices that both reduce environmental toxins and improve soil health. Investors continue to engage with both Kellogg and General Mills, as well as PepsiCo, Campbell’s, Kraft Heinz, J.M. Smucker, and others. 

Christy Spees
Environmental Health Program Manager, As You Sow