Western Digital Corporation: Climate Transition Plan Reporting
WHEREAS: The increasing rate and number of climate related disasters affecting society is causing alarms to be raised globally, making the corporate sector’s contribution to climate mitigation a significant policy issue.
In addition to environmental and social harms, climate change is creating systemic risks to the economy. The Commodity Futures Trading Commission last year underscored that climate change could impair the productive capacity of the U.S. economy.
Shareholders are increasingly concerned about material climate risk to their companies and their portfolios and seek clear and consistent disclosures from the companies in which they invest, including credible climate transition plans. BlackRock’s CEO notes that investment flows into “sustainable” and climate aligned assets will drive long term outperformance and that companies should disclose plans for how their business model will be compatible with a net zero economy.
In response to material climate risk, the Climate Action 100+ initiative (CA100+), a coalition of more than 575 investors with over $54 trillion in assets, issued a Net Zero Benchmark (Benchmark) outlining metrics that create climate accountability for companies and transparency for shareholders. Indicators 1 through 5 of the Benchmark seek reporting on companies’ net zero emissions ambitions; short, medium, and long-term greenhouse gas (GHG) reductions goals; and strategic action plans to achieve decarbonization targets.
Western Digital Corporation is a leading developer, manufacturer, and provider of data storage devices with more than 14,000 patents awarded worldwide. Our company discloses its Scope 1-3 GHG emissions, an important first step in taking responsibility for its emissions. It also achieved a 3.8% reduction in energy use in 2020. The Company, however, has not set targets to reduce its GHG emissions in alignment with the Paris goal of net zero emissions by 2050 or a plan for achieving them. By setting and disclosing GHG emissions reduction targets, including net zero ambitions, reporting a clear climate transition plan, and demonstrating progress toward achieving such goals, Western Digital Corporation can provide investors with assurance that management is reducing its climate contribution and addressing the growing risks associated with climate change.
BE IT RESOLVED: Shareholders request that Western Digital issue a report within a year, and annually thereafter, at reasonable expense and excluding confidential information, that discloses short, medium, and long term GHG gas reduction targets aligned with the Paris Agreement’s goal of maintaining global temperature rise at 1.5 degrees Celsius, and progress made in achieving them. Reporting should cover the company’s full range of operational and product related emissions.
SUPPORTING STATEMENT: Proponents suggest, at Board and Company discretion, the report describe:
The Company’s climate transition plan for achieving its GHG reduction goals over time;
How the Company’s capital allocation plans align with the Company’s climate transition plan, where relevant;
A rationale for any decision not to set targets aligned with the Paris Agreement’s 1.5 degree goal;
Other information the Board deems appropriate.
Resolution Details
Company: Western Digital Corporation
Lead Filers:
As You Sow
Year: 2021
Filing Date:
June 2021
Initiative(s): Say On Climate
Status: Resolution Withdrawn, Agreement Reached