Altria Group, Inc. | Interfaith Center on Corporate Responsibility

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<strong>Company:</strong>
<p>Altria Group, Inc.</p>
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<strong>Year:</strong>
<p>2025 </p>
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<strong>Issue Area:</strong>
<p>Health </p>
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<strong>Focus Area:</strong>
<p>Tobacco </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p><strong>RESOLVED</strong>, that shareholders request the Board of Directors commission a third-party report, at reasonable cost and omitting proprietary information, on </p>

corporate adherence to Altria’s vision to lead adult smokers to less harmful alternatives while discouraging the use of Altria’s nicotine delivery products by young people and adult non-smokers, 
any resulting public health impacts on communities,

<p>and present the results of that report to shareholders.</p>
<p><strong>Supporting Statement</strong>:  We believe in full transparency around Altria’s achievement of its stated goals of “taking action to transition millions of adult smokers away from cigarettes to potentially less harmful alternatives” and “limiting access to products to unintended audiences, including youth and adult non-smokers”.  The report we seek would assist shareholders in evaluating this.</p>
<p>Altria claims that 34% of its 53.2 million adult tobacco consumers exclusively use smoke-free products, including oral (chewing) tobacco, nicotine pouches, and e-vaper, with heated tobacco products in development[1]. The Centers for Disease Control and Prevention (CDC) clearly states that no tobacco products, including e-cigarettes, are safe. E-cigarette aerosol can contain numerous harmful substances, including nicotine, cancer-causing chemicals, heavy metals, and tiny particles that can be inhaled deep into the lungs.[2]</p>
<p>The negative health and productivity impacts from consumption of tobacco products impose $1.2 trillion in social damage; tobacco’s unpriced social burden amounts to almost 3 percent of global GDP annually.[3] </p>
<p>In 2024, e-cigarettes were the most commonly used tobacco product among US middle and high school students, with 1.21 million high school and 410,000 middle school students currently using them. 67.4% of students who currently use e-cigarettes reported trying to quit in the last year. Most tobacco use, including vaping, starts and is established during adolescence. Among the factors associated with youth tobacco use the CDC lists are a) tobacco advertising that targets youth, b) product accessibility, and c) adolescent brain sensitivity to nicotine.[4]</p>
<p>The Family Smoking Prevention and Tobacco Control Act, signed into law in 2009, restricts tobacco marketing and sales to youth, requires smokeless tobacco warning labels, ensures “modified risk” claims are supported by scientific evidence, and requires disclosure of ingredients in tobacco products. However, according to a study published in the Oxford Journals, “Unlike combustible cigarette marketing, which is heavily restricted in the US, e-cigarette marketing is not regulated at the national level in the US.”[5]</p>
<p>“Marketing is one of the key drivers of e-cigarette use. The 2021 US National Youth Tobacco Survey indicated that approximately 74% of youth who use social media had been exposed to content related to e-cigarettes.” The World Health Organization specifically recommends that countries regulate electronic nicotine delivery systems and that the regulations encompass “advertising, promotion, and sponsorship in an effort to prevent children and non-smokers from using e-cigarette products.”[6]</p>
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<p>[1]https://www.altria.com/en/moving-beyond-smoking</p>
<p>[2]https://www.cdc.gov/tobacco/e-cigarettes/health-effects.html</p>
<p>[3]https://www.cdc.gov/tobacco/data_statistics/fact_sheets/economics/econ_facts/index.htm</p>
<p>[4]E-Cigarette Use Among Youth | Smoking and Tobacco Use | CDC</p>
<p>[5]https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6610165/#:~:text=The%20new%20rule%20requires%20a,cigarette%20marketing%20beyond%20warning%20labels.</p>
<p>[6]https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9967293/</p>

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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Tom McCaney</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Sisters of St. Francis of Philadelphia</span></div>
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<h3>Co-filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Lydia Kuykendal</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Bon Secours Mercy Health</span></div>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Lydia Kuykendal</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Congregation of Sisters of St. Agnes</span></div>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Lydia Kuykendal</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Congregation of St. Joseph, OH</span></div>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Lydia Kuykendal</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Mercy Investment Services</span></div>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Lydia Kuykendal</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Providence St. Joseph Health</span></div>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Cathy Rowan</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Trinity Health</span></div>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Barbara Aires</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Sisters of Charity of St. Elizabeth, NJ</span></div>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Fr. Robert Wotypka</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Province of St. Joseph of the Capuchin Order (Midwest Capuchins)</span></div>
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Resolution Details

Company:

Altria Group, Inc.

Year:

2024

Issue Area:

Environment

Focus Area:

Plastics Pollution, Pollution, Tobacco

Status:

Filed

Resolution Text

WHEREAS: Plastic, with a lifecycle social cost at least ten times its market price, threatens the world’s oceans, wildlife, and public health.1Concern about the growing scale and impact of global plastic pollution has elevated the issue to crisis levels.2 Of particular concern are single-use plastics (SUPs),3 which make up the largest component of the 24-34 million metric tons of plastic ending up in waterways annually.

Cigarette filters are a form of single-use plastics. They are the most littered item globally with 4.5 trillion discarded annually, comprising 300,000 tons of potential plastic microfibers released into the environment. Cigarette filters do not biodegrade and can remain in the environment indefinitely in the form of microplastics. Discarded cigarette filters can contain more than 15,000 plastic microfibers and thousands of toxic chemicals.When cigarette filters are littered on streets and beaches, they can leach harmful pollutants into soil and water, including heavy metals and nicotine, which are toxic to fish and other sea creatures4

Annual costs of cleaning up littered filters are significant: $2.6 billion for China and $766 million for India.5 Cleanup costs have traditionally been borne by taxpayers rather than the industry placing these problematic products on the market. As a producer of plastic waste, Altria must begin to take financial responsibility for the cleanup of its cigarette filter/butt waste. The European Union’s Single-Use Plastics Directive imposes Extended Producer Responsibility (EPR)on tobacco producers to cover the costs of collecting and processing cigarette filters, and Denmark, France, and Spain have already imposed cleanup fees.6

More than 100 companies support EPR laws requiring them to finance the collection of waste packaging to keep plastics from becoming uncontrolled waste.7Altria has stated its“products have an impact on the environment, and we have a responsibility to minimize that impact.”U.S.EPR tobacco laws to cover the costs of collecting and treating butt filters would help address the problem and create a level playing field for manufacturers. In the interim, Altria can voluntarily contribute significant funding to U.S. state or municipal governments to help finance existing filter collection and cleanup efforts.

BE IT RESOLVED: Shareholders request the Altria Board issue a public report, at reasonable expense and excluding proprietary information, assessing the benefits to the Company of extended producer responsibility laws for spent tobacco filters for tobacco companies operating in the U.S. market.

SUPPORTING STATEMENT: The report should assess at Board discretion:

The reputational, financial, and operational risks associated with failing to take responsibility for filter cleanup costs;

An appropriate level of voluntary financial contributions to support state cigarette filter cleanup efforts.

1 https://wwfint.awsassets.panda.org/downloads/wwf_pctsee_report_english.pdf

2 https://www.unep.org/resources/pollution-solution-global-assessment-marine-litter-and-plastic-pollution

3 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019L0904&from=EN#page=8

4 https://fingfx.thomsonreuters.com/gfx/legaldocs/gdpzqykgevw/Cigarette%20Litter%20Complaint%20filed%20copy.pdf ; https://www.who.int/publications/i/item/9789240051287 ; https://oceanconservancy.org/wp-content/uploads/2023/06/ICCCharter-REDUCE-Report-2023-TFSOceanConservancy.pdf

5 https://www.who.int/publications/i/item/9789240051287

6 https://www.europarl.europa.eu/doceo/document/E-9-2023- 000787_EN.html#:~:text=The%20Single%2DUse%20Plastics%20Directive,incentivising%20consumers%20about%20responsible%20behaviour

7 https://www.ellenmacarthurfoundation.org/extended-producer-responsibility/overview

Resolution Details

Company:

Altria Group, Inc.

Year:

2024

Issue Area:

Health, Lobbying & Political Contributions

Focus Area:

Tobacco

Status:

Filed

Resolution Text

RESOLVED: Shareholders request that Altria annually analyze and report on the congruence of both political spending and lobbying expenditures during the preceding year, compared to its public Vision, Responsibility Focus Areas and Cultural Aspirations statements, listing and explaining instances of incongruent or misaligned expenditures, and reporting whether the identified incongruencies will lead to changes in future expenditures.

WHEREAS: A New York Times article, “Big Tobacco Heralds a Healthier World While Fighting Its Arrival”, [1] reported: “Major cigarette companies, like Altria and R.J. Reynolds, acknowledge that cigarettes are dangerous and addictive, and they are heralding their investments in electronic cigarettes and other less-harmful alternatives to cigarettes. But, behind the scenes , they are taking steps to slow the very smokeless future they claim to want: The companies have submitted letters protesting the proposed menthol ban in traditional cigarettes, and they have signaled they will similarly resist any efforts to lower nicotine levels.”

Altria is a long-time supporter of the American Legislative Exchange Council (ALEC), an organization that brings together corporate lobbyists and legislators and drafts model legislation for state and federal legislators to propose. It is one of the top corporate sponsors of ALEC’s annual conference. Altria’s senior director of government affairs spoke at ALEC’s 2023 conference, and, according to an article by the Center for Media and Democracy, urged “state lawmakers to deregulate the tobacco industry despite the lethal, addictive nature of its products, which are responsible for nearly 500,000 death a year in the U.S.”[2]

Altria also supports initiatives conflicting with its environmental commitments, one of its Responsibility Focus Areas.[3] Altria set science-based greenhouse gas reduction targets yet is a member of the US Chamber of Commerce as well as ALEC, both of which lobbied to roll back specific climate regulations and regulations to slow the transition towards a lower-carbon economy.

While Altria has articulated support for the right to vote[4], the League of Women Voters and over 300 organizations sent a letter to Altria and other corporations to stop funding ALEC because of its voter restriction efforts.[5]

Altria does not disclose the amount of payments to trade associations (TAs) and social welfare groups (SWGs). Companies can give unlimited amounts to TAs and SWGs that spend millions on lobbying. The federal Lobbying Disclosure Act doesn’t require reporting of state lobbying.

While Altria scores well on the Center for Political Accountability (CPA)’s Zicklin Index of Corporate Political Disclosure and Accountability, it has not adopted CPA’s Model Code of Conduct[6], which includes: “disclose dues and other payments made to trade associations and contributions to other tax-exempt organizations that are or that it anticipates will be used for political expenditures. The disclosures shall describe the specific political activities undertaken.”[7]

Altria’s 2022 Lobbying and Political Activity Transparency and Integrity Report provides very useful information; our proposal would close a critical gap in information provided and greatly enhance transparency .

[1] https://www.nytimes.com/2022/11/06/health/tobacco-fda-menthol-ban-nicotine.html?smid=em-share

[2] https://www.exposedbycmd.org/2023/08/21/tobacco-giant-altria-buys-access-to-alec-lawmakers-urges-deregulation/

[3] https://www.altria.com/responsibility/protect-the-environment?src=resp-at-a-glance

[4] https://www.altria.com/about-altria/our-voice-and-actions/where-we-stand-on-voting-rights

[5] https://www.commoncause.org/press-release/common-cause-fair-fight-action-and-over-300-organizations-call-on-corporations-to-cut-ties-with-alec/

[6] https://www.politicalaccountability.net/wp-content/uploads/2022/06/CPA-Zicklin-Model-Code-of-Conduct-for-Corporate-Political-Spending.pdf

[7] https://www.politicalaccountability.net/wp-content/uploads/2022/06/CPA-Zicklin-Model-Code-of-Conduct-for-Corporate-Political-Spending.pdf

Resolution Details

Company:

Altria Group, Inc.

Year:

2023

Issue Area:

Human Rights & Worker Rights

Focus Area:

Racial Justice

Status:

Vote

Vote Percentage:

30.76%

Altria Group, Inc. Civil Rights Audit – Proxy Exempt Solicitation

Altria exempt solicitation 4-10-23.docx

Resolution Text

WHEREAS: we believe in full transparency of the effectiveness of Altria’s commitment to prevent underage use of nicotine products[1] and its commitment to racial equity[2] so we can determine if they adequately address potential legal, financial, and reputational business risks.

RESOLVED: Shareholders of Altria, Inc. (“Altria”) request that the Board of Directors commission a third-party civil rights equity audit to review its corporate policies, practices, products and services, above legal and regulatory matters; to assess the impact of the Company’s policies, practices, products and services on BIPOC (Black, Indigenous and people of color) and Latinx/a/o/e communities, including youth. Input from civil rights organizations, employees, customers, and communities in which Altria operates and other stakeholders should be considered. A report on the audit, prepared at reasonable cost and omitting confidential or proprietary information, should be publicly disclosed on Altria’s website.

SUPPORTING STATEMENT: Altria notes “increases in youth usage of e-vapor have threatened to undermine the hard-fought gains made in preventing underage use.”[3] As age is a protected class in the US constitution, a civil rights audit should include impacts on children and youth.

In December 2018, Altria invested $12.8 billion in JUUL, taking a 35% stake in the company, and providing advertising and sales support. JUUL currently commands three-quarters of the e-cigarette market.

Data from the Centers for Disease Control shows that 86.3% of middle and high school students had been exposed to tobacco product advertisements or promotions, and 27.5% of high schoolers reported current e-cigarette use in 2019. Additionally, an estimated 53.3% of high school students and 24.3% of middle school students reported having ever tried a tobacco product.[4] A multi-state coalition of Attorneys General is investigating JUUL’s marketing and sales practices to underage users. Altria shares fell as much as 2.7% after Dow Jones reported the FTC is investigating the marketing practices of JUULLabs.

Tobacco/nicotine companies have historically placed larger amounts of advertising[5] in African American publications, disproportionally exposing African Americans to more cigarette ads than Whites. Additionally, tobacco companies use price promotions such as discounts and multi-pack coupons—which are most often used by African Americans and other minority groups, women, and young people—to increase sales.[6]

Numerous companies have recently committed to conducting audits, including Citigroup, Verizon, Apple, Wells Fargo, and Mondelez.

A civil rights audit is an important step in establishing a transparent system of accountability. Altria should take this opportunity to review its policies, practices, products and services, and how they impact the civil rights of youth and BIPOC communities.

[1] https://www.altria.com/en/responsibility/prevent-underage-use

[2] https://www.altria.com/en/people-and-careers/our-people-and-communities/racial-and-economic-equity

[3] https://www.altria.com/en/about-altria/government-affairs/public-policy-positions/legislation-preventing-underage-use

[4] Tobacco Product Use and Associated Factors Among Middle and High School Students — United States, 2019 CDC

[6] African Americans and Tobacco Use

Resolution Details

Company:

Altria Group, Inc.

Year:

2023

Issue Area:

Health, Lobbying & Political Contributions

Focus Area:

Climate Change, Lobbying, Political Contributions, Tobacco

Status:

Vote

Vote Percentage:

10.90%

Altria Group, Inc. Political Contributions Misalignment – Proxy Memo

j411230px14a6g.pdf

Resolution Text

RESOLVED: Shareholders request that Altria annually analyze and report on the congruence of its political and lobbying expenditures during the preceding year against its publicly stated company values and policies, listing and explaining instances of incongruent expenditures, and stating whether the identified incongruencies have or will lead to a change in future expenditures or contributions.

WHEREAS: A New York Times article, “Big Tobacco Heralds a Healthier World While Fighting Its Arrival”, [1] reported: “Major cigarette companies, like Altria and R.J. Reynolds, acknowledge that cigarettes are dangerous and addictive, and they are heralding their investments in electronic cigarettes and other less-harmful alternatives to cigarettes. But, with much less fanfare, they are taking steps to slow the very smokeless future they claim to want: The companies have submitted letters protesting the proposed menthol ban in traditional cigarettes, and they have signaled they will similarly resist any efforts to lower nicotine levels.”

Altria has set science-based greenhouse gas reduction targets, yet is a member of the U.S. Chamber of Commerce and the American Legislative Exchange Council (ALEC), both of which have lobbied to roll back specific US climate regulations and promote regulatory frameworks that would slow the transition towards a lower-carbon economy. This raises questions about whether Altria is also supporting efforts that conflict with its environmental commitments.

In addition, while Altria has articulated its support for the right to vote, the Company was one of the recipients of a letter sent by the League of Women Voters and over 300 organizations to corporations to stop funding ALEC because of its voter restriction efforts.[2]

Altria does not disclose its payments to trade associations (TAs) and social welfare groups (SWGs). Companies can give unlimited amounts to TAs and SWGs that spend millions on lobbying and undisclosed grassroots activity. The federal Lobbying Disclosure Act does not require reporting of grassroots lobbying, and disclosure is uneven or absent in states. Investors have repeatedly sought greater transparency because a company’s political activity can contradict its stated goals, posing reputation risk.

The Center for Political Accountability’s (CPA) report, “Practical Stake: Corporations, Political Spending and Democracy” provides “a framework for companies to evaluate their political spending and align it with core company values and core democracy values, mitigating risks to their self-interests and democracy.”[3] One of the report’s findings is that “political spending by companies totaling millions of dollars too often conflicts with their public commitments. Companies contributed heavily to a partisan political group tied to robocalls one day before Jan. 6, 2021. That same group helped elect state attorneys general who went to court to get the 2020 election results from key states thrown out. At the state level, companies gave millions of dollars to groups supporting the election of officeholders who worked for new laws to restrict or suppress voting.” [4] Altria’s expenditures are cited numerous times in the report.

[1] https://www.nytimes.com/2022/11/06/health/tobacco-fda-menthol-ban-nicotine.html?smid=em-share

[2] https://www.commoncause.org/press-release/common-cause-fair-fight-action-and-over-300-organizations-call-on-corporations-to-cut-ties-with-alec/

[3] https://www.politicalaccountability.net/wp-content/uploads/2022/04/Practical-Stake.pdf

[4] https://electionlawblog.org/?p=129088

Public Health Impacts Created by Manufacture of Tobacco Products

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