MesaLabs Inc: Climate Change Disclosures and Transition Plans

March 16, 2023 As You Sow

WHEREAS: According to the Intergovernmental Panel on Climate Change, the window for limiting global warming to 1.5 degree Celsius (“1.5°C”) is quickly narrowing.[1] Investor demand for science-aligned greenhouse gas emission reductions reflects the reality that climate change poses a risk to companies and systemic risk to investor portfolios. Failure to reach Net Zero by 2050 is projected to have disastrous economic consequences.[2] Therefore, immediate and significant emissions reduction is required of all market sectors.

The healthcare sectors of 40 countries, including the U.S., are responsible for almost 5% of global annual greenhouse gas emissions. In the U.S., the health sector makes up 8 - 10% of total carbon emissions, with medical retailers accounting for the largest share.[3]

Mesa Labs is a global leader in producing tools and quality control solutions for the medical and pharmaceutical industries. Mesa Labs lacks any emissions disclosures. It also lacks emissions reduction targets despite identifying climate-related regulatory risk in its latest 10-K.[4] Indeed, the SEC has proposed the Climate Disclosure Rule,[5] which the Company appears unprepared to address. Mesa Labs further identifies in its 10-K that physical risks from climate change may adversely impact facilities and disrupt its global supply chains.[6] Quantifying and setting reduction targets across its full value chain emissions would enable Mesa Labs to further understand the climate impacts of its direct operations, supply chain, and create strategies to reduce climate risk.

As shareholders grow increasingly concerned about climate-related risks, as shown by the $59 trillion of assets under management that have adopted net zero goals for portfolios,[7] companies gain competitive advantage by aligning with climate-related disclosure expectations and adopting greenhouse gas reduction targets. Mesa Labs peers Thermo Fisher Scientific,[8] 3M,[9] Ametek,[10] and General Electric[11] all disclose emissions data and have established emission reduction targets, while Mesa Labs has failed to do so.

By measuring and disclosing its Scope 1, 2, and 3 emissions, Mesa Labs can provide investors with assurance that management is taking action to measure and manage its climate-related risks and opportunities.

BE IT RESOLVED: Shareholders request that Mesa Labs measure and annually report its material Scope 1 through 3 greenhouse gas emissions across the Company’s full value-chain.

SUPPORTING STATEMENT: Proponents suggest, at management discretion, the company report:

A timeline for setting a 1.5°C-aligned Net Zero by 2050 target for the Company’s full value chain emissions, aligned interim emissions reduction goals, and a climate transition plan to achieve them.

[1] https://report.ipcc.ch/ar6wg3/pdf/IPCC_AR6_WGIII_FinalDraft_FullReport.pdf

[2] https://www.nytimes.com/2021/04/22/climate/climate-change-economy.html

[3] https://iopscience.iop.org/article/10.1088/1748-9326/ab19e1/meta#erlab19e1s4

[4] https://www.sec.gov/ix?doc=/Archives/edgar/data/724004/000143774922013906/mlab20220331b_10k.htm

[5] https://www.sec.gov/news/press-release/2022-46

[6] https://www.sec.gov/ix?doc=/Archives/edgar/data/724004/000143774922013906/mlab20220331b_10k.htm, p. 16

[7] https://www.netzeroassetmanagers.org/signatories/

[8] https://ir.thermofisher.com/investors/news-events/news/news-details/2022/Thermo-Fisher-Scientific-Raises-Greenhouse-Gas-Emissions-Reduction-Target-on-Path-to-Net-zero-Emissions/default.aspx

[9] https://www.3m.com/3M/en_US/sustainability-us/environmental/climate-and-energy/

[10] https://investors.ametek.com/news-releases/news-release-details/ametek-releases-2021-sustainability-report

[11] https://www.climateaction100.org/company/general-electric-company/

Resolution Details