A big U.S. church wants Albertsons to report abortion-related costs. This is why
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- Presbyterian Church urges Albertsons to report state abortion ban-related costs.
- Albertsons to vote on other shareholder proposals related to food waste and human rights.
- The grocery retailer recommended rejecting all three proposals at a meeting in August.
A church with over a million members wants Albertsons to prepare a report on how much abortion bans around the country have cost the company.
The Presbyterian Church (U.S.A.), which owns a small amount of the grocery giant’s stock, asked Albertsons to prepare a public report on any known costs to the company caused by state policies severely restricting reproductive rights or access to abortion-related medications.
Idaho, where the supermarket chain is based, has a strict abortion ban.
The church, through its Board of Pensions, plans to present the proposal at the company’s annual stockholder meeting later this summer, according to Albertsons’ annual proxy statement released June 20.
Two other organizations with small holdings submitted proposals requesting disclosures related to food waste and human rights. The three proposals were reported earlier by Supermarket News. Here’s what to know about all three:
1. Church wants details on abortion ban-related costs
The Presbyterian Church said in its proposal that Albertsons has 137,000 female employees who may face steep challenges in their ability to access reproductive health care. It cited a survey that found a majority of women under 40 would prefer to work for a company that supports abortion access, and that 64% of Americans say employers should ensure employees have access to reproductive health care.
“Albertsons operates 1,730 pharmacies in the U.S. but has repeatedly declined to clarify whether it will provide abortion medication to its customers where it is legal to do so,” the church said.
The Presbyterian Church is headquartered in Louisville, Kentucky, and has a few dozen congregations in Idaho, including a handful in the Treasure Valley, according to a church directory.
The church requested that Albertsons’ board issue a public report detailing how much laws restricting reproductive rights have cost the company, and what strategies the company could use to mitigate the risks, beyond litigation. It said the report could include impacts on employee hiring, retention and productivity in states with abortion bans.
What Albertsons says: The grocer’s board recommended voting against the proposal, arguing that it imposes unnecessary burdens without providing meaningful benefits. The company said in the proxy statement that it already offers comprehensive health benefits and monitors laws to support employees as required.
“Albertsons does not decide which treatments and procedures are medically necessary; rather, these decisions are made by our associates, their healthcare providers and the insurance companies administering the plan,” the company said. “We are continually reviewing and developing our health benefits and intend to update those benefits to meet the evolving needs of our workforce and in compliance with applicable law.”
2. Nonprofit says Albertsons doesn’t report all food waste
The Accountability Board, a nonprofit organization based in Toronto, Canada, that pushes public companies to improve corporate responsibility, asked Albertsons to regularly disclose its total quantity of food waste and the percentage of that waste diverted from landfills.
The group said Albertsons has touted its goal of sending zero food waste to landfills by 2030 in its environmental, social and governance reports over the last few years. But the company doesn’t disclose how much total waste it’s generating nor how much is diverted from landfills, according to The Accountability Board.
“Adoption of this proposal would therefore provide data necessary for shareholders to assess Albertsons’ progress meeting its goal on this hugely significant policy matter,” the group said in its proposal.
The group noted that Albertsons’ rival grocer Kroger does disclose its total food waste — 222,522 metric tons in 2023 — and its percentage diverted from retail stores: nearly 46%.
What Albertsons says: Albertsons said it tracks a variety of food waste-related metrics in its latest Recipe for Change report, including that it diverted over 325 million pounds of food waste from landfills and donated 92 million pounds of food in 2023.
The company also said it uses artificial intelligence-assisted forecasting and ordering to prevent excess food from being generated. But when it does generate excess food, the company said, it donates the food to community groups. For food that can’t be donated, Albertsons tries to divert it from ending up at a landfill.
“Because industry standards recognize that even with a fully implemented diversion program, some portion of food waste will nevertheless reach landfills, our goal defines success as a 90% diversion rate,” the company said.
3. Charity says grocer doesn’t disclose human-rights policy
Oxfam America, a charity that fights global inequality and poverty, asked for a public report on Albertsons’ human-rights policy.
The organization said the company does not disclose whether it has a human-rights policy containing a due diligence process that would identify and address actual and potential adverse human-rights impacts in its operations and supply chains, according to the proxy statement.
“While competitors are increasing policies in place to safeguard against the risks of forced labor in supply chains, Albertsons stands out as reducing information on its approach to human rights,” Oxfam America said. “Understanding a company’s approach to human rights allows shareholders to evaluate Albertsons’ management of human rights risk.”
Oxfam America cited media reports about a federal investigation into labor violations by Star Farm, a supplier to Albertsons-owned Safeway; labor violations by Albertsons supplier Humberto Castaneda Produce, including refusal to provide seasonal workers with meals, tools and transportation costs while housing them in “dilapidated trailers;” and a New York Times investigation into illegal child migrant labor at Albertsons milk supplier Lucerne.
What Albertsons says: Albertsons said it respects the fundamental human rights and dignity of individual workers and is committed to upholding such rights across its operations and supply chains.
“Our code of ethics and vendor code of conduct explicitly prohibit forced labor, child labor and other human rights violations,” the company said. “Vendors are contractually bound to adhere to all applicable human rights laws and regulations, ensuring voluntary labor and compliance with minimum age requirements.”
Want to vote at the shareholders’ meeting?
Investors plan to vote on the three proposals at a virtual shareholder meeting at 3 p.m. Mountain Time on Aug. 7. Albertsons recommends shareholders vote against all the proposals. To vote, you must have owned shares as of June 11.
Albertsons also plans to hold an advisory vote on executive compensation and elect 11 directors to serve on the company’s board. Shareholders can vote online, by phone, by mail or during the live webcast.
None of the organizations requesting disclosures is a major Albertsons shareholder. The Presbyterian Church owns just a tiny fraction of the company, at least $2,000 in stock for at least three years, which qualifies it to submit shareholder proposals. The Accountability Board and Oxfam America each own at least $15,000 of the stock for at least two years, according to the proxy statement.
To be eligible to submit a proposal, U.S. Securities and Exchange Commission regulations require that shareholders must hold at least $2,000 of a company’s stock for at least three years, at least $15,000 for at least two years, or at least $25,000 for at least one year.
Albertsons‘ biggest shareholders include Cerberus Capital Management, which owns over $3.4 billion in Albertsons stock; Fidelity Investments, which holds more than $1 billion; and BlackRock, with about $900 million, according to Yahoo Finance.
