International Paper Company | Communist China audit at International Paper

Status
2.16% votes in favour
AGM date
Proposal number
6
Resolution details
Company ticker
IP:US
Lead filer
Individual
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Human rights
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Materials
Company HQ country
United States
Resolved clause
Resolved:

Shareholders request that, beginning in 2023, International Paper report to shareholders on the general nature and extent to which corporate operations involve or depend on Communist China, which is a serial human rights violator and a geopolitical threat and adversary to the US. The report should exclude confidential business information but provide shareholders with a basic sense of International Paper’s reliance on activities conducted within, and under control of the Communist Chinese government.
Supporting statement
Supporting Statement:
American companies doing business in Communist China is a controversial public policy issue. See, e.g., “Doing business in China is difficult. A clash over human rights is making it harder,” April 2, 2021, https://www.cnn.com/2021/04/02/business/nike-china-western-business-intl-hnk/index.html.
• Communist China is a well-known serial violator of human and political rights. Communist China may also possibly become a hostile adversary of the US for a variety of reasons, including:
• Communist China intends to displace the US as the lone global superpower by 2049.
• The US has committed to defending Taiwan, which Communist China may attempt to seize by force.
US-China relations are tense over a number of issues including Communist China’s military expansion, egregious human rights violations, actions related to the COVID pandemic, intellectual property theft, elimination of political freedom in Hong Kong, and environmental pollution.
Communist China has also publicly indicated that it would use its industrial capabilities for strategic purposes against adversaries. Communist China has already taken action against Australia, for example, for COVID-related criticism. International Paper operates in Communist China and admits (albeit without meaningful description or quantification) that “disruption in existing trade agreements or increased trade friction between [the U.S. and China] could have a negative effect on our business and results of operations by restricting the free flow of goods and services across borders.” Given the controversial, if not dangerous nature of doing business in China, shareholders have the right to know the general nature and extent to which International Paper’s business operations are involved with or depend on Communist China.

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