Yet again Mercy Investment Services, an arm of the Sisters of Mercy, has intervened in the company governance of a chicken company. The Service has filed with the Securities and Exchange Commission to enjoin Pilgrim’s Pride Corp. to prepare and release a report on water use and disposal prior to the December 31st 2021. Mercy Investment Services maintains that Pilgrim’s Pride does not conform to industry standards regarding water use, wastewater management and sustainability. It is noted that major competitors have produced annual sustainability reports addressing power consumption, water utilization and disposal and resource management.
Apparently Pilgrim’s Pride is objecting to the proposal that has negligible chance of being approved at the April 28th Annual General Meeting since JBS SA exercises control over more than 75 percent of voting shares.
Notwithstanding the reality that the proposal will be rejected, negative publicity will ultimately force the management of Pilgrim’s Pride to release a sustainability report. The company has sustained reputational damage over the past few years from the activities of the Batista brothers, major shareholders in the holding company of JBS SA. The company was impacted by the recent admission to the Department of Justice of collusion on pricing and in addition has been critized for and alleged lack of response to COVID outbreaks in their red meat plants. Questions relating to sustainability and worker welfare were addressed by the Global CEO Gilberto Tomazoni in comments accompanying the March 25th release of the HBS S.A. 2020 Annual Financial Report