Quantitative Goals for Reducing Plastics Use

Resolution Text

Whereas : According to the Company’s 2020 CDP report, “plastic packaging affects the majority of Target’s products.”

Plastic pollution is a growing problem globally. Only 9% of all plastic made in the last 60 years has been
recycled, with the rest ending up in landfills, incinerated or in the natural environment. An estimated 8
million tons of plastic waste is released into the ocean every year, and a report by the Pew Trust found
that existing industry and government commitments will only reduce this marine plastic pollution by 7%
by 2040.

Failing to demonstrate measurable progress toward reducing its plastic footprint may pose material
financial risks to Target.

In its 10-K, Target notes that a perceived lack of transparency around environmental issues could harm
its reputation. Consumer preferences for sustainability are changing, especially among younger
generations, and according to Deloitte’s Global Millennial Survey, two-thirds of Millennials and Gen Zs
reported taking steps to reduce their use of single-use plastic. It is critical that companies demonstrate
progress toward reducing their plastic packaging or risk alienating sustainability-focused customers and
losing market access.

Regulation aimed at reducing plastic use has swelled in recent years with little indication of abatement.
Over 120 countries, eight U.S. states, and hundreds of municipalities have bans or restrictions on plastic
in place. Furthermore, as climate-related regulations tighten on fossil fuels, which are used to make
plastic, the material may become more expensive to produce, reducing profit margins and shareholder
value for companies that rely on it. Target highlights changing oil prices’ impact on plastics as a risk in its CDP report, but does not disclose quantitative progress toward goals that mitigate plastic-related risks to investors.

Target lags behind consumer goods peers on disclosure. Colgate-Palmolive reports best practice plastic
packaging use metrics annually. Nestlé discloses the amount of plastic it uses annually, the percentage
that is recycled plastic, and the amount avoided through its packaging initiatives. Unilever reports
quantitative progress toward its plastic packaging goals and plans to reduce its absolute plastic use by
100,000 tons.
In a recent report, Target received a D- grade for its efforts on packaging transparency. Without
disclosure, investors lack sufficient information to assess how Target is progressing toward its plastic
packaging goals and whether current goals will result in a reduction of Target’s plastic footprint.
Resolved : Shareholders request that Target issue an annual report, at reasonable expense and omitting
proprietary information, disclosing quantitative metrics that demonstrate how the Company is reducing
plastic use in its owned brand packaging over time.
Supporting statement : Proponents defer to management on the content of the report, but suggest that
indicators meaningful to shareholders include:
● Annual disclosure of quantitative metrics such as plastic packaging use by weight and by unit,
percent of total plastic use made from recycled content, progress toward the elimination of
problematic plastics like foam and PVC, etc.
● Any quantitative, timebound goals for reducing the Company’s absolute plastic footprint.

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Lead Filer

Annalisa Tarizzo
Green Century Capital Management, Inc.