"The company has shown leadership in this area in the past with the removal of mercury thermometers from their shelves but on this issue they are not responsive," said Lauren Compere, director of shareholder advocacy at Boston Common Asset Management.
In a joint press statement earlier this month Boston Common Asset Management and its investment management Citizens Advisors said that, as shareholders in CVS, they wanted the company to take a more responsible stand with regards the formulation of its cosmetic products.
The action has involved the Campaign for Safe Cosmetics, which has been lobbying the industry to remove allegedly harmful ingredients in the US since 2002, together with Boston Common Asset Management, which is a social investment firm dedicated to financial return whilst encouraging social change.
Compere said that CVS had challenged its resolution at the SEC, but did not succeed.
"CVS has not come to the table to discuss the issue even though we approached them to have a dialogue in January, after we filed the resolution," Compere added.
The shareholder resolution asks CVS to report to shareholders on the feasibility of establishing a policy to reformulate CVS brand cosmetics to be free of chemicals linked to birth defects and cancers.
The initiative will cover product ingredients that are suspected carcinogens, mutagens, and reproductive toxins, as well as chemicals that affect the endocrine system, accumulate in the body or persist in the environment.
CVS stores are found throughout the US, with a store network that numbers 5,400 in 37 states. It also has 13 distribution centres, as well as an on-line retail arm. It sells a variety of personal care and cosmetics products produced by all the leading international players, as well as a wide range of health care products.
Boston Common Asset Management says that it will proactively seek safe alternatives for chemicals deemed to be unsafe, publicly report on their progress; and encourage its suppliers to do the same.
"Yes, we are pushing other companies to also look at the chemicals in their products especially in light of REACH and the impact it might have on their ability to sell products in Europe," Compere added.
"Our push with CVS is part of a larger investor movement to push companies to be more pro-active in the area of removing toxic chemicals in their products."