Constellation Brands stockholders did not approve a proposal calling on the company to issue a report on ways to support circular packaging infrastructure, the beverage producer and marketer reported in a filing following last week’s shareholder meeting.
Approximately 31% of votes favored the proposal, of those cast for or against. In advising against the proposal, Constellation said in its proxy statement that such a report would be unnecessary, pointing to the inaugural ESG Impact Report it released last October and new packaging sustainability commitments named in April. Constellation said it will continue to report on its plastic packaging reductions in future ESG reports.
Constellation’s beer, wine and spirits brands include names such as Modelo, Corona, Kim Crawford and Svedka. By its 2025 fiscal year, Constellation aims to replace the plastic in beer hi-cone ring carriers with recyclable paperboard; ensure that 80% of wine and spirits packaging is returnable, recyclable or renewable; and reduce the ratio of packaging weight to liquid wine and spirits ratio by 10%.
Shareholder advocacy nonprofit As You Sow was one of the organizations behind the proposal. It noted in the resolution that Constellation competitors Molson Coors, Heineken and Diageo make voluntary contributions to expand recycling infrastructure. As You Sow gave Constellation an “F” grade on the organization’s 2021 Corporate Plastic Pollution Scorecard, which evaluated companies’ goals.
As You Sow put forth similar proposals this year at Kroger, Amazon, Yum Brands and Restaurant Brands International, which were also not approved by respective shareholders. Of the other companies that As You Sow targeted, multiple have since separately shared updates on sustainable packaging aims and progress. Amazon, for instance, reported last week that it’s phasing out plastic mailers.
Constellation’s shareholders also rejected a separate As You Sow-driven proposal calling on the company to create a climate transition plan and lay out a timeline to set certain greenhouse gas emissions reductions goals — though it gained a larger margin of support than the packaging proposal.
As You Sow currently has one remaining consumer packaging proposal, at Coty, yet to be voted on.
