Friends of the Earth, Domini Social Investments and Trillium Asset Management praised Lowe’s (NYSE: LOW) for making a commitment to eliminate neonicotinoid pesticides — a leading contributor to global bee declines — from its stores.
After input from suppliers, NGOs, investors and other key stakeholders, the company announced it will phase out neonicotinoids (“neonics”) as suitable alternatives become available, redouble existing integrated pest management practices for suppliers and provide additional material educating customers about pollinator health.
“We commend Lowe’s for taking a leadership position on this critical issue,” said Adam Kanzer, Managing Director and Director of Corporate Engagement at Domini Social Investments. “Sales of neonic-containing products may be exacerbating a critical systemic risk – alarming declines in honeybees and wild pollinators that support our food systems. As investors and as human beings, we all depend upon pollinators. We believe Lowe’s actions will help protect an irreplaceable resource.”
“We are pleased Lowe’s is listening to consumer concerns and to the growing body of science telling us we need to move away from bee-toxic pesticides by taking steps to be part of the solution to the bee crisis,” said Lisa Archer, Food & Technology Program Director at Friends of the Earth. “Bees are canaries in the coalmine for our food system and everyone, including the business community, must act fast to protect them.”
“Lowe’s public commitment will better position the company to meet the demands of an increasingly environmentally-conscious consumer base. And, it sends an important market signal that restricting the use of bee-harming pesticides is essential to tackling bee declines,” said Susan Baker, Vice President, Trillium Asset Management. “We applaud the company’s positive steps on this issue.”
Friends of the Earth Campaign
This announcement follows a two-year campaign led by Friends of the Earth and allies* to urge Lowe’s and other garden retailers to stop selling plants treated with neonicotinoids and remove neonic pesticides from their shelves. More than one million people signed petitions and thousands of activists delivered letters directly to Lowe’s stores in cities across the U.S. and Canada asking for this change.
A study released by Friends of the Earth and Pesticide Research Institute, Gardeners Beware 2014, showed that 51 percent of garden plants purchased at Lowe’s, Home Depot (NYSE: HD), and Walmart (NYSE: WMT) in 18 cities in the United States and Canada contained neonicotinoid pesticides at levels that could harm or even kill bees. In the past year, more than twenty nurseries, landscaping companies and retailers—including Home Depot, Whole Foods (NASDAQ: WFM) and BJ’s Wholesale Club have taken steps to eliminate bee-killing pesticides from their stores. The UK’s top garden retailers including Homebase, B&Q and Wickes, have also stopped selling neonicotinoids.
Investor Engagement on Pollinator Declines
Investors, in collaboration with the Investor Environmental Health Network, began engaging home improvement retailers and food companies in their portfolios about the environmental risks of neonics in 2013, the year Domini and Trillium opened conversations with Lowe’s about the topic.
While Domini and Trillium had constructive dialogue with Lowe’s, the investors chose to submit a shareholder proposal in November to stress the urgency of the issue. The proposal, submitted by the Domini Social Equity Fund (Ticker: DSEFX) and by Trillium Asset Management, on behalf of Ellen Webster, asked the company’s Board of Directors to conduct a risk assessment of its environmental protection policies and practices to determine whether continued sales of neonicotinoid-containing products are in the best interests of Lowe’s, its consumers and its shareholders.
The investors withdrew the shareholder proposal in response to new commitments which will help the company provide its customers with products that promote healthy gardens and reduce risks to pollinators and other beneficial organisms.
- A time-bound phase out of neonicotinoid (“neonics”) containing products in shelf products and plants, to be completed by the Spring of 2019, as suitable alternatives become available. For nurseries, Lowe’s will phase-out neonics for bee-attractive plants, and plants where regulatory requirements do not require the application of neonics (certain states require the application of neonics on certain plants and nursery material). Lowe’s plans to implement this phase-out as soon as is practicable.
- Redoubling pesticide management efforts and the addition of an application reduction plan with plant suppliers, including the collection and sharing of growers’ best practices around use of biological controls and integrated pest management (“IPM”) practices, and research into best alternatives. Nurseries will be required to disclose to Lowe’s the amount of pesticides used per acre, or a similar metric.
- Increased focus on consumer education initiatives including in-store distribution of EPA and Pollinator Partnership pesticide brochures and product tags which will highlight the health of bees and other pollinators.
- Funding of pollinator gardens through the company’s philanthropic and volunteer programs.
- Disclosure of these efforts in its 2014 Corporate Social Responsibility Report.
- Continued dialogue with Domini, Trillium and Friends of the Earth focused on implementation and public reporting of these commitments.
“Along with our allies, we will continue to work with Lowe’s and other retailers to move neonicotinoid pesticides off their shelves and out of garden plants as soon as possible to ensure bees can find save havens in our backyards and communities,” said Archer. “With a new spring planting season upon us, it’s important for gardeners to be aware that many plants in stores today still contain neonicotinoids. We look forward to the day shoppers can buy home garden plants without worrying about harming pollinators.”
Lowe’s announcement comes eight months after a meta-analysis of 1,121 peer-reviewed studies by the Task Force on Systemic Pesticides concluded neonicotinoids are a leading factor of bee declines and are harming birds, earthworms, butterflies and other wildlife. The Task Force called for immediate regulatory action.
In October, 2014, the Council on Environmental Quality issued guidance for federal facilities and federal lands which included acquiring seeds and plants from nurseries that do not treat these items with systemic insecticides.
On April 2, the EPA announced a moratorium on new or expanded uses of neonicotinoids while it evaluates the risks posed to pollinators. Last month, more than four million Americans signed petitions calling on the Obama administration to put forth strong protections for bees and other pollinators. The Pollinator Health Task Force, established by the White House this past June, is charged with improving pollinator health, and assessing the impacts of pesticides, including neonicotinoids, on pollinators.