||Sustainability Report, PVC
||Camilla Madden Charitable Trust
||Withdrawn for dialogue; company will update CSR report
Investors increasingly seek disclosure of companies' social and environmental practices in the belief that they impact shareholder value. Many investors believe companies that are good employers, environmental stewards, and corporate citizens will more likely prosper over the long term and be accepted in their communities.
A similar proposal in 2007 received over 44% shareholder vote in support.
Hasbro’s Corporate Safety Health and Environmental Commitment Statement notes laudable goals such as waste reduction and increase in recycling, yet there is no reporting on progress toward those goals.
Companies increasingly recognize that transparency and dialogue about sustainability are keys to business success. Sustainability issues can include a corporation’s choices regarding materials, its consumption of energy, its impact on human rights, its impact on disposal and recycling, and its role in the economy of local communities.
The link between sustainability performance and long-term shareholder value is awakening mainstream financial companies to new tools for understanding and predicting capital markets. According to environmental research consultant Innovest, major investment firms subscribe to information on companies' social and environmental practices, including sustainability reports, to help make investment decisions.
An example of sustainability concerns: Hasbro sells many toys made out of or packaged in polyvinyl chloride (PVC) plastic, a substance which has come under scrutiny due to health and environmental concerns. PVC presents an array of issues throughout the production lifecycle – from use of raw toxic chemicals such as chlorine gas and cancer-causing vinyl chloride monomer in PVC production, to exposure of workers and surrounding communities where the PVC-utilizing toys are produced, to the release of toxic additives such as lead and phthalates during use and disposal of PVC toys. An indicator of public concern is the recent ban in San Francisco, prohibiting the sale, distribution and manufacture of baby products containing certain levels of phthalates, plasticizers used in PVC products. When it comes to the waste disposal cycle, PVC has the lowest recycling rate of the major plastic resins.
A sustainability report will inform shareholders of the company’s preparedness to meet the European Union’s REACH standards on chemical safety.
A thorough sustainability report can benchmark our company against others. Taking the PVC example, it might examine how prominent competing toy companies and retailers such as Wal-Mart and Ikea are phasing out PVC in products and/or packaging.
THEREFORE BE IT RESOLVED THAT: Shareholders of Hasbro Inc. request the Board of Directors to publish a sustainability report, at reasonable expense and omitting proprietary information, by December 2008.
We believe the report should include:
- The company's operating definition of sustainability.
- A review of current company policies and practices related to social, environmental and economic sustainability, including the above issues.
- A summary of long-term plans to integrate sustainability objectives throughout company operations.