Constellation Brands Inc: Climate Transition Plan and GHG Reduction Goals

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 WHEREAS: Immediate and significant emissions reductions are required to avoid the worst consequences of climate change on the global economy and investor portfolios.[1] Investor demand for Paris-aligned greenhouse gas (GHG) reductions reflects the reality that climate change poses growing systemic risk to companies (through crop damage, power outages, destroyed equipment,  output constraints, road and runway buckling, lost business days) and to investor portfolios (due to economy-wide risk, as demonstrated by the current national insurance crisis). Oxford Economics’ technical working paper suggests that “the projected economic costs from climate change, calculated using damage functions, are far greater than we had previously estimated,” and that all countries see significant losses in productivity growth from additional warming.[2]

Immediate and significant emission reductions are particularly necessary for the food and beverage sector, which is responsible for approximately one third of global greenhouse gas emissions.[3] 

Constellation Brands, an alcoholic beverage producer, identifies numerous climate-related risks in its 10-K, including negative effects on the supply and quality of water and raw agricultural materials, which are central to the Company’s products.[4] The company also notes that “the success of our brands depends upon consumer perception,” which is, in part, influenced by the company’s “environmental impact, including use of agricultural materials...and energy use.”[5] Constellation identifies regulatory compliance costs associated with climate change as another risk factor.[6] By reducing emissions from its full value chain, Constellation Brands can mitigate climate-related risks including reputational harm, transition risk, and supply chain disruptions.

While Constellation Brands has committed to reduce its Scope 1 and 2 emissions by 15% by 2025,[7] these targets are not aligned with the goals of the global Paris Agreement. Furthermore, according to the Company’s disclosures, over 95% of its emissions fall within Scope 3, meaning that its current climate targets cover less than five percent of its total climate footprint.

Constellation lags peers in mitigating climate impact, exposing the company to competitive risks. Molson Coors, Heineken, Diageo, AB InBev, and Rémy Cointreau have all set Paris-aligned reduction targets for their full value chain emissions and validated these targets through the Science Based Targets initiative.[8] By setting Paris-aligned reduction targets covering its full value chain and disclosing a climate transition plan, Constellation Brands can remain competitive with peers and assure investors that it is addressing climate-related risks.

BE IT RESOLVED: Shareholders request that the Board issue a report, at reasonable expense, excluding confidential information, disclosing how Constellation Brands intends to reduce its full value chain greenhouse gas emissions in alignment with the goals of the Paris Agreement.

SUPPORTING STATEMENT: Proponents recommend, at Company discretion, the report include a timeline for setting such emission reduction goals.

Resolution Details

Company: Constellation Brands Inc

Lead Filers:
As You Sow

Year: 2025

Filing Date: 
January 2025

Initiative(s): Climate Emissions Reduction Targets and Actions

Status: Filed

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Climate and EnergyAs You SowClimate, GHG, greenhouse gas, consumer goods, materials, 1.5, GHG protocol, greenhoues gas protocol, net zero, Paris supply chain, value chain, targets, scope 3, Constellation Brands, Constellation