Deforestation

Resolution Text

WHEREAS: As one of the world's largest casual dining companies with more than 1400 restaurants in 49 states and 21 countries, Bloomin’ Brands, Inc. uses palm oil, soy, beef, and pulp/paper in its business. These commodities are leading drivers of deforestation globally.

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 supply chains are vulnerable to reputational, regulatory, operational, and competitive risks, and, in turn, to financial damage. Deforestation has attracted significant negative attention from civil society, business, government, and major media outlets, including The New York Times and Bloomberg.

Bloomin’ buys from companies that operate in areas at high-risk for deforestation, including at least one that has been linked to illegal deforestation. Supply chains that illegally contribute to deforestation are increasingly vulnerable to interruption from regulatory action.

In its 2018 10-K, Bloomin’ identifies increased commodity costs, changing consumer preferences, and failure to compete effectively, including against quick service restaurants, as risk factors. These risk factors are exacerbated by deforestation.

For instance, deforestation is disrupting rainfall patterns in key grain and beef producing regions, including those of Bloomin’s suppliers, which will impact production and likely commodity prices. Consumers increasingly prefer restaurants that source sustainably raised ingredients and that address their environmental impacts. In response to shifting market expectations, restaurant groups, including competitors like The Cheesecake Factory, McDonald’s, and Yum! Brands, have made significant progress in setting targets related to addressing deforestation.

In contrast, Bloomin’ has no public statements or commitments regarding deforestation. CDP Forests, a reporting framework supported by investors representing $87 trillion in assets, scored Bloomin’ an F across all commodities in 2018; SCRIPT, a platform used by financial institutions to analyze soft commodity risk exposure, flags Bloomin’ as “high-risk,” scoring the company 3.5 out of 100. Bloomin’ scores below McDonalds and Yum! Brands on both platforms.

Failure to meet shifting consumer expectations and to keep pace with competitors may pose risks to Bloomin’ including restricted market access, supply chain disruption, and loss of goodwill. 

RESOLVED: Shareholders request that the Board of Directors issue a report to investors by October 31, 2020 at reasonable expense and excluding proprietary information, assessing how the company could increase the scale, pace, and rigor of efforts to mitigate supply chain greenhouse gas emissions, inclusive of deforestation and land use change.

Supporting Statement: Proponents suggest that the Board of Directors consider including indicators in the report such as:

  • Greenhouse gas emissions reduction targets associated with Bloomin’s supply chains; 
  • Any progress toward specific no-deforestation policies for all relevant commodities in its global operations;
  • Reporting progress toward these goals reported through CDP or similar platforms; and
  • Any proactive implementation efforts by the company, such as time-bound plans, verification processes, or non-compliance protocols.

Lead Filer

Jessye Waxman
Green Century Capital Management, Inc.