Procter & Gamble: Investor Risk Alert

Procter & Gamble’s failure to address irresponsible suppliers is a reputational risk for ESG funds & investors.

Procter & Gamble (P&G) shareholders, investment analysts and ESG fund managers beware. A growing controversy threatens P&G’s brand equity and creates reputational risks for portfolios with ESG screens. ESG investors should engage P&G and hold it accountable for its environmental and human rights liabilities.

The growing controversy around P&G’s irresponsible sourcing puts the credibility and reputation of individual ESG funds that hold positions in P&G at risk while undermining the integrity of ESG investment standards. ESG funds that hold positions in P&G risk being associated with and held accountable by their clients and in the court of public opinion for P&G’s human rights and environmental impacts. As the controversy grows, more ESG investors will demand accountability and action to mitigate the risks associated with P&G’s approach. P&G’s failure to adequately address the persistent and ongoing business risk could result in P&G’s ESG rating being downgraded. ESG investment advisors and fund managers should be aware that P&G now poses a material risk.


ESG funds that hold positions in a company that puts forests, wildlife, labor and human rights at risk are not only undermining their own integrity, but also threaten the integrity of ESG standards.


  1. Read the “Risk Alert”.
  2. Express your concerns to P&G directly. To learn more about P&G's insufficient action and how you can encourage P&G to adopt aggressive, time-bound leadership commitments and distance itself from suppliers that fail to meet these standards, please contact us at
  3. If P&G fails to address your concerns, and if structural change is not forthcoming, cast votes against key directors on the company’s board.
  4. Evaluate what level of risk P&G's controversial supply chains present for the ESG screens you or your clients care about. Invest in or develop funds that avoid primary forest degradation or deforestation. Adopt your own primary forest deforestation-risk policy, and follow Guidelines for Asset Managers on Forests and Human Rights.

For more information, please contact:

NRDC's "By a Thousand Cuts" report (2021)
NRDC's Issue With Tissue #1 (2019) and #2 (2020) Webinar: The Truth about Procter & Gamble's Impact on Forests and Communities.