Whereas: Tyson Foods, Inc. (Tyson) utilizes beef, soy, palm oil, and pulp/paper in its business. These commodities are leading drivers of deforestation.

Deforestation contributes to climate change, biodiversity loss, soil erosion, disrupted rainfall patterns, land conflicts, and forced labor. Commercial agriculture and ranching drives two-thirds of tropical deforestation and is the second largest driver of global climate change. There is a growing consensus that deforestation and the climate crisis must be addressed.

Companies that do not adequately address and mitigate exposure to deforestation in their supply chains are vulnerable to material financial risk. Those that fail to take proactive measures are increasingly vulnerable to interruption from regional, global, and local governmental regulations and enforcement. The devastating effects of deforestation have received extensive coverage from international media outlets, such as The New York Times and Bloomberg. Reputational damage has been shown to impact a company’s value by as much as 30 percent.1

In light of shifting market expectations for sustainable production of commodities linked to deforestation, more than 450 companies, including industry peers, have committed to eliminating deforestation within their supply chains:

• JBS S.A., a leading global animal protein processing company, has committed to zero deforestation in its beef and soy supply chains;

• Cargill has committed to eliminate deforestation across its entire agricultural supply chain by 2030; and

• Hormel Foods Corporation has reaffirmed the Consumer Goods Forum’s commitment to achieve deforestation-free supply chains by 2020.

By contrast, Tyson recognizes “escalating” stakeholder concern over deforestation in its 2018 Sustainability Report, but has no public statements or commitments regarding deforestation. Ending deforestation would help Tyson achieve its goal of reducing GHG emissions by 30% by 2030, as agricultural emissions constitute 80% of the Company’s total Scope 3 emissions.

Furthermore, the Company has limited transparency around its supply chain risks and practices: although Tyson reports to CDP, it does not disclose information on either its palm oil or international supply chains, which are higher-risk for deforestation. In the 2018 Forest 500 assessment, Tyson scored 1/5, compared with Cargill and JBS, which both scored 3/5.

Failure both to meet shifting consumer and market expectations and to keep pace with industry peers could expose the company to significant business risks, including restricted market access, damage to its brand value, loss of goodwill, and supply chain disruption.

Resolved: Shareholders request that Tyson issue a report to investors by July 30, 2020 at reasonable expense and excluding proprietary information, including quantitative data on its global supply chain impacts on deforestation, and assessing if and how the company could increase the scale, pace, and rigor of its efforts to eliminate deforestation from its supply chains.

Supporting Statement: Proponents defer to management’s discretion, but believe meaningful indicators in such disclosure could include:

• Reporting any progress toward specific no-deforestation policies for all relevant commodities;

• Reporting evidence of proactive implementation efforts, such as time-bound plans, verification processes, and non-compliance protocols; and

• Public disclosure of progress toward these goals through CDP Forests Questionnaire or similar platforms.

1 https://chainreactionresearch.com/report/deforestation-driven-reputation-risk-could-become-material-for-fmcgs/ 

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