Kroger 2014 Annual Report Download - page 61
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significant amounts of embedded value, lie buried in landfills. Unrecyclable packaging is more likely
to be littered and swept into waterways. A recent assessment of marine debris by a panel of the Global
EnvironmentFacilityconcludedthatonecauseofdebrisenteringoceansis“designandmarketingofproducts
internationallywithoutappropriateregardtotheirenvironmentalfateorabilitytoberecycled…”
Inthemarineenvironment,plasticsbreakdownintoindigestibleparticlesthatmarinelifemistakeforfood.
StudiesbytheEPAsuggestasynergisticeffectbetweenplasticdebrisandpersistent,bioaccumulative,toxic
chemicals.Plasticsabsorbtoxicssuchaspolychlorinatedbiphenylsanddioxinsfromwaterorsedimentand
transferthemtothemarinefoodwebandpotentiallytohumandiets.OnestudyoffishfromtheNorthPacific
found one or more plastic chemicals in all fish tested, independent of location and species.
Californiaspendsnearly$500millionannuallypreventingtrash,muchofitpackaging,frompollutingbeaches,
riversandoceanfront.Makingallpackagingrecyclable,ifpossible,isthefirststepneededtoreducethethreat
posedbyoceandebris.
Companieswhoaspiretocorporatesustainabilityyetusetheseriskymaterialsneedtoexplainwhytheyuse
unrecyclablepackaging.Othercompanieswhomanufactureandsellfoodandhouseholdgoodsaremoving
towards recyclability. Procter & Gamble and Colgate-Palmolive agreed to make most of their packaging
recyclableby2020.KeurigGreenMountainwillK-cupcoffeepodsrecyclable;andMcDonald’sandDunkin
Donutsshiftedawayfromfoamplasticcups,whichcannotbereadilyrecycled.
RESOLVED:ShareownersofKrogerrequest thattheboardofdirectorsissueareport,atreasonablecost,
omitting confidential information, assessing the environmental impacts of continuing to use unrecyclable
brandpackaging.
Supporting Statement:Proponentsbelievethatthereportshouldincludeanassessmentofthereputational,
financialandoperationalrisksassociatedwithcontinuingtouseunrecyclablebrandpackagingand,ifpossible,
goalsandatimelinetophaseoutunrecyclablepackaging.”
TH E B O A R D O F D I R E C T O R S R E C O M M E N D S A V O T E A G A I N S T T H I S P R O P O S A L F O R T H E
FO L L O W I N G R E A S O N S :
Kroger sharesthe proponents’concernsregardingplasticrecyclabilityand recognizesthe important
role we play as a good steward of the environment.
We continue to improve the recyclability of our corporate branded products. We follow a balanced,
multi-prongedapproachtooptimizepackagingdesignsthatconsiderattributesincludingbutnotlimitedto
foodsafety,shelflife,availability,quality,materialtype,function,recyclabilityandcost.
Krogerisincreasinglylabelingcorporatebrandedproductsthatcanberecycled,pertheFederalTrade
Commission’s Green Guides, prompting our customers to “PLEASE RECYCLE.” Examples include banner
brandwaterbottles,whicharemadefrompolyethyleneterephthalate(PETE),oneofthemostwidelyrecycled
plasticsavailable.Ourbannerbrandedbreadbagsaremadefromlow-densitypolyethylene(LDPE),whichcan
berecycledatmostofourstores,aspartoftheplasticbagrecyclingprogram.
Kroger also works with various industry experts and forums to advocate for expanded recycling
infrastructure to support multiple forms of plastic packaging and to support diversion from landfills. For
example,polypropylene(PP)hasmanypropertiesanddesirabletraitsforourbannerbrandicecreamsuchas
easyopeningandreclosingandlongershelflife.Itallowsustouselessmaterialbyweight,duetoitsstrength,
thanotherpolymers.Whilenotyetwidespread,itisincreasinglybeingacceptedatcurbsideprograms.
For each of the past several years we have published online our annual Sustainability Report that
highlights our sustainability initiatives and waste reduction efforts in greater detail. We will continue to
supporteffortstoreducewaste,findoptimizedsolutionsandadvocateforexpandedrecyclinginfrastructure.
Webelievetheseeffortsaresignificantandmeaningful.
ThisproposalrequeststhatKrogertakeadditionalstepstoreportonanassessmentoftheenvironmental
impact of unrecyclable packaging. We believe that the requested report would serve little benefit to our
shareholders,andpreparationofareportwoulddivertresourcesthatotherwisecouldbemoreappropriately
usedinthebestinterestsofourshareholders.