Sysco 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 actions planned to achieve decarbonization targets.
Sysco Corporation is a global distributor of food products, providing services to over 625,000 customer locations. Our company discloses GHG emissions and is undertaking limited initiatives including purchasing a small number of electric vehicles and increasing renewable energy adoption 20 percent by 2025. While these are credible first steps, the Company has not set targets to reduce GHG emissions across its entire enterprise, including supply chain emissions, or disclosed a plan for how to achieve Paris-aligned GHG emissions reductions.
Climate related decisions by a company have portfolio-wide and economy-wide implications. Setting and disclosing GHG emissions reduction targets, including net zero ambitions; reporting a climate transition plan in line with achieving such goals; and reporting progress to shareholders, is an important means of assuring that management is comprehensively reducing its climate contribution and taking seriously the physical and transition risks of climate change, benefitting both the company and investors.
BE IT RESOLVED: Shareholders request that Sysco issue a report within a year, and annually thereafter, at reasonable expense and excluding confidential information, disclosing short, medium, and long term greenhouse gas targets aligned with the Paris Agreement’s goal of maintaining global temperature rise at 1.5 degrees Celsius, and progress made in achieving them. This reporting should cover the Company’s full scope of operational and product related emissions.
SUPPORTING STATEMENT: Proponents suggest, at Company discretion, the report describe:
The Company’s climate transition plan for achieving its GHG reduction goals over time, including including aligned capital allocation 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: Sysco Corporation
Lead Filers:
As You Sow
Year: 2021
Filing Date:
June 2021
Initiative(s): Say On Climate
Status: 92.1% Vote