Worthington Industries, Inc.: Climate Transition Plan Reporting

Whereas: The increasing rate and number of climate related disasters affecting society is causing alarms to be raised by investors and the executive, legislative, and judicial branches of government globally. This makes corporations’ contribution to climate mitigation a significant policy issue and a growing risk.

The Commodity Futures Trading Commission recently issued a report finding that climate change poses a significant risk to and could impair the productive capacity of the US economy.

Shareholders are concerned about material climate risk to their companies and to their portfolios and seek clear and consistent disclosures from the companies in which they invest, including credible climate transition plans. BlackRock’s CEO writes that investors “are asking companies to disclose a plan for how their business model will be compatible with a net zero economy”.

In response to material climate risk, the steering committee of the Climate Action 100+ initiative, a coalition of more than 570 investors with over $54 trillion in assets, issued a Net Zero Company Benchmark (Benchmark) outlining metrics that create climate accountability for companies and transparency for shareholders on: greenhouse gas (GHG) emissions, GHG targets, climate governance, and climate related financial disclosures. Indicators 1 through 5 of the Benchmark seek reporting on the company’s ambitions for net zero emissions, interim GHG reduction goals across short, medium, and long term time frames, as well as strategic actions planned to achieve decarbonization targets.

Worthington Industries, Inc. is a global diversified metals manufacturing company. Our company discloses its GHG emissions and is undertaking energy efficiency programs for its manufacturing facilities, but has not set climate related targets to reduce its GHG emissions across its entire enterprise and supply chains. While Worthington has a goal of 100% renewable energy adoption by 2022 at its Kienberg, Austria facility, it currently reports that the percentage of renewable energy used at the enterprise level is 0.14 percent. By also setting and disclosing GHG reduction targets, reporting a clear climate transition plan, and demonstrating progress toward it, Worthington can provide investors with assurance that management is addressing the physical and transition risks associated with climate change.

Resolved: Shareholders request that Worthington issue a report at least 120 days prior to the next annual meeting, at reasonable expense and excluding confidential information, evaluating whether and how the Company intends to revise its policies to be fully responsive to Indicators 1 through 5 of the Benchmark.

Supporting Statement: Proponents suggest, at Board and Company discretion, the report:

Identify relevant GHG emission scopes for the Company, including indirect and value chain emissions;
Any net zero by 2050 and interim GHG emissions reduction targets covering all relevant emissions scopes;
Annual progress made in achieving GHG emissions reduction targets, if any;