Hormel Foods Corp: Producer Responsibility for Packaging

<- Back to Resolution Tracker

WHEREAS:  The growing plastic pollution and packaging waste crises pose increasing risks to Hormel Foods. Corporations could face an annual financial risk of approximately $100 billion should governments require them to cover the waste management costs of the packaging they produce.[1] Laws to this effect have significant momentum, having been recently adopted in four U.S. states, with additional introduced at the state and federal level.[2] The European Union has already enacted a $1 per kilogram tax on all non-recycled plastic packaging waste.[3] Additionally, consumer demand for sustainable packaging is increasing.[4]

A circular economy for packaging, whereby packaging is designed for reuse or recycling and kept in the economy and out of the environment, plays an important role in a net-zero emissions world. Hormel states it is committed to emissions reductions,[5] yet lacks commitments to ensure the circularity of its product packaging,[6] even though its sold products and packaging contribute significantly to Scope 3 emissions at their end-of-life (“EOL”).[7]

More than 100 leading companies have committed to promoting a circular economy for packaging by acknowledging responsibility for the collection, sorting, and recycling of packaging at EOL, a policy known as Extended Producer Responsibility (“EPR”).[8] Absent legally mandated EPR, companies must make voluntary contributions to improve the collection and recycling of their packaging.

The Recycling Partnership (“TRP”), the leading recycling organization, finds that $17 billion is needed to modernize and expand recycling infrastructure, and that doing so will save the equivalent of 710 million metric tons of CO2 over ten years.[9] To improve plastic recycling infrastructure, TRP recommends that companies contribute at least $88 for every metric ton of plastic used.[10]

Competitors Kraft Heinz, Kellogg’s, Nestlé, Procter & Gamble and at least 25 other companies make voluntary contributions to expand recycling infrastructure, a critical step in embracing EPR.[11] Hormel is not known to voluntarily contribute to help ensure its packaging never becomes waste.[12] 

Hormel received an “F” grade on a recent report evaluating corporate packaging sustainability for its failure to financially support recycling infrastructure, endorse EPR, explore reuse opportunities, and make all packaging recyclable.[13]

Our Company could avoid regulatory, environmental, and competitive risks by adopting a circular economy approach to packaging and financially contributing to recycling infrastructure. 

BE IT RESOLVED:  Shareholders request that the Board issue a report, at reasonable expense and excluding proprietary information, describing opportunities for Hormel to support a circular economy for packaging.

SUPPORTING STATEMENT:  The report should assess, at Board discretion:

  • The reputational, financial, and operational risks associated with failing to promote a circular economy for packaging; 

  • The potential to increase packaging recyclability and transition to reusable packaging; and

  • Opportunities to develop policies or goals to endorse EPR and determine an appropriate level of voluntary financial contributions to recycling infrastructure.

Resolution Details

Company: Hormel Foods Corp.

Lead Filers:
As You Sow

Year: 2024

Filing Date: 
August 2023

Initiative(s): Circular Economy

Status: Resolution Withdrawn, Agreement Reached

Download PDF

Press Release

Circular EconomyAs You Sowplastic packaging, Consumer Packaging, Producer Responsibility, Hormel, Hormel Foods