Dear Senators and Representatives,
We, the undersigned investors, write to express our support for the Protect America’s Children from Toxic Pesticides (PACTPA) Act.
This bill would significantly strengthen the current regulations under the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and better assure investors that human health and environmental risks associated with the use of harmful pesticides, especially for children, are being managed and mitigated through a federal regulatory framework. In the past decade, the use of toxic pesticides – the catch-all term for chemicals used to control insects (insecticides), weeds (herbicides), and fungi (fungicides) – has created economic harm and financial risk for investors. For example, Bayer, a key producer of glyphosate, a pesticide linked to cancer, is facing an estimated $16 billion in litigation costs. The economic dependence we have on toxic chemicals is a toxic addiction for shareholders that is simply unsustainable. Just like Roundup, this harmful shortcut has been overused.
As noted in the Childhood Cancer: Cross-sector strategies for Prevention, the incidence rate of childhood cancer—the number of new cases of cancer per 100,000 children—is increasing. Since the mid-1970s, cancer incidence rates in American children have increased sharply. From 1975 to 2017, leukemia incidence rates increased by roughly 34%, and incidence rates of brain and other central nervous system cancers increased 40%. Recognition is growing that hazardous exposures in the environment, including to pesticides, have been implicated as a risk factor for childhood cancers. A robust evidence base has emerged tying early life exposures to pesticides used at home to an increased risk of childhood leukemia and brain tumors, and an increased risk for childhood lymphomas has also been observed.,,,,,, Pesticides continue to be used on school property, and some schools are at risk of pesticide drift exposure from neighboring farms, which leads to pesticide exposure among students and school employees.
Substantial scientific evidence demonstrates that use of toxic pesticides also harms public health along the supply chain, from farmers and farmworkers to consumers. Pesticide exposure has been linked to increased risk of various health problems, including cancers, infertility, neurodevelopmental disorders, and endocrine disruptions. Annually, the United States uses more than a billion pounds of pesticides, accounting for approximately one-fifth of worldwide use. This pesticide exposure causes more chemical-related injuries and illnesses to farmworkers and their families than any other workforce in the U.S. Farmworkers of color are disproportionately impacted, with an estimated 10,000 to 20,000 Latinx agricultural workers falling ill each year from pesticide exposure. Furthermore, the U.S. Environmental Protection Agency (EPA) has acknowledged that its own Worker Protection Standard (WPS) that is designed to protect farmworkers from pesticide exposure is insufficient.
Additionally, a recent peer-reviewed study found that in the U.S., Black, Indigenous and people of color, as well as low-income communities, bear an outsized burden of the harms caused by pesticides. Specifically, biomarkers for 12 harmful pesticides tracked over 20 years were found in the blood and urine of Black or Mexican Americans at average levels as much as five times higher than in white residents. Children living in communities surrounded by manufacturing facilities, refineries, or intensive agriculture—where residents are often low-income or people of color—may have particularly high exposures due to the cumulative impacts they face.
Finally, we cannot ignore the devastating impact that toxic pesticides are having on biodiversity and environmental health. The World Economic Forum’s Global Risks Report 2022 identified biodiversity loss and natural resource crises amongst the top 10 “most severe risks on a global scale over the next 10 years.” Approximately 40% of all invertebrate pollinating species are on the brink of extinction, due, in large part, to the pesticides used in agricultural production. The continued loss of pollinators poses significant financial risks for the entire food industry as an estimated $235 billion to $577 billion worth of global annual food production relies on contributions by pollinators. And it has been estimated that crop production in high-income countries could fall by about 5% and closer to 10% in low- to middle-income countries due to pollinator decline.
In consideration of the above, pesticide use, exposure, and contamination is a material issue for investors. Leading companies are beginning to recognize these risks. For example, in response to investor engagement, Walmart, Target, and Dollar Tree, among other retailers, established pollinator protection policies to reduce pesticide use in their food supply chains. After a series of dialogues and a 34% vote in support of a shareholder proposal addressing pesticide risk, Lamb Weston, a leading food processor, agreed to incorporate pesticide use reduction measures in its 2020 Corporate Responsibility Report. In 2021, the company set and disclosed a quantitative pesticide use reduction goal while also committing to use a science-based strategy to address its climate impacts.
As shareholders and fiduciaries, we recognize the material risks posed by the impacts of pesticides on human health and children’s health most profoundly, biodiversity loss, and environmental health. Stronger federal legislation and regulation creates a more level playing field and market certainty. PACTPA could create stronger incentives for suppliers to transition away from toxic pesticide use, and for agrochemical companies to focus on developing sustainable and safer alternatives – all of which contributes to long-term growth and good risk management. The economic benefits of pesticide use reduction are well established. Annual economic gain from a regenerative agriculture system is estimated to be $1.17 trillion by 2030 and $3.04 trillion by 2050, with a reduction of public health costs of $850 billion a year by 2030. Consumer demand for organic products has exhibited double-digit growth most years since the 1990s, and now accounts for more than 4% of total U.S. food sales. In response, industry leaders, including Costco, Kroger, and Target are working to expand their market share of organic products.
The PACTPA establishes a framework and set of standards that mitigate financial risks by:
- Requiring pesticide ingredients to be registered and determined to be safe in order to be used in final pesticide products;
- Improving the evaluation of chemicals and pesticide ingredients by focusing on scientific analysis and removing the economic costs as a factor;
- Increasing transparency of pesticide ingredients on product labels;
- Encouraging reformulation of pesticide products using less toxic ingredients; and
- Reducing workers’ and children’s exposure to toxic chemicals and lowers the risk and costs of potential health problems.
For the reasons stated above, we support the passage of the PACTPA Act.
Signed,