Eagle Materials: GHG Disclosure and Target Setting
WHEREAS: The latest IPCC report states that the window for limiting global warming to 1.5 degrees Celsius (“1.5°C”), is quickly narrowing. To avoid the most catastrophic impacts of climate change, immediate, sharp emissions reductions are required of all market sectors and industries.[1]
Shareholders are responding to growing material climate risk in their portfolios. The Climate Action 100+ initiative, a coalition of more than 700 investors with over $68 trillion in assets, issued a Net Zero Benchmark (“Benchmark”) outlining metrics that create climate accountability for companies and transparency for shareholders. Indicators one through five of the Benchmark seek reporting on companies’ net zero emissions ambition; short, medium, and long-term greenhouse gas (“GHG”) reductions goals; and strategic actions to achieve decarbonization targets.[2]
Eagle Materials, the largest independent cement producer in the U.S.,[3] does not report its GHG emissions, nor has it published emission reduction targets. Comprehensive emissions disclosures and science-aligned reduction targets are baseline requirements for thriving in a decarbonizing economy and ensuring that emissions are reduced in a strategic and effective manner. Investors are concerned that the Company’s lack of transition planning is increasing its climate-related environmental, economic, competitive, and regulatory risks.
The cement industry is a major source of GHG emissions, and Eagle Materials is lagging peers in both emissions disclosure and target setting. Through the Science Based Targets initiative, a globally acknowledged target setting standard, 67 companies in the 'Construction Materials' sector have set or committed to set near-term emission reduction targets.[4] Leading cement producers such as Ultratech, Holcim, and Heidelberg have set net zero targets.[5] Failure to keep pace with peers, particularly in planning and innovating for success in a low carbon economy, increases the potential for competitive disadvantage and regulatory risk over time.
By setting 1.5°C, Paris-aligned GHG reduction targets for its Scope 1 through 3 emissions, disclosing a net zero transition plan, and demonstrating progress toward achieving these goals, Eagle Materials can provide investors with assurance that our Company is reducing its climate contribution, addressing the risks and opportunities associated with climate change, and ensuring its competitiveness.
BE IT RESOLVED: Shareholders request that Eagle Materials adopt medium, and long-term science-based greenhouse gas emissions reduction targets, inclusive of emissions from its full value chain, in order to achieve net zero emissions by 2050 or sooner.
SUPPORTING STATEMENT: Proponents suggest, at Board discretion, that the Company:
Disclose a timeline for disclosing the Company’s Scope 1, 2, and 3 GHG emissions;
Disclose a timeline for setting a Net Zero by 2050 GHG reduction target and 1.5°C aligned interim goals;
Consider approaches used by advisory groups such as the Science Based Targets initiative;
Include an enterprise-wide climate transition plan to achieve 1.5oC aligned emission reductions; and
Annually report progress towards meeting its emissions reduction goals.
[1] https://report.ipcc.ch/ar6wg3/pdf/IPCC_AR6_WGIII_FinalDraft_FullReport.pdf
[2] https://www.climateaction100.org/
[3] http://ir.eaglematerials.com/static-files/be5f44ab-d72e-4ecb-9f31-f49e2990e2f7, p.3
Resolution Details
Company: Eagle Materials
Lead Filers:
As You Sow
Year: 2023
Filing Date:
February 2023
Initiative(s): Climate Change
Status: Resolution Withdrawn, Agreement Reached