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Resolution: Energy Efficiency
2006 Shareholder Resolution approved by the Advisory Committee on Corporate Social Responsibility (ACCSR)
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Resolution:
Energy Efficiency
Whereas:
Rising energy costs and concerns about energy security, climate
change and the burning of fossil fuels are focusing increasing
amounts of attention on energy efficiency. The G8 recently
agreed to an "Action Plan" to promote energy efficiency and in
the US, over 40 bills dealing with energy efficiency were
introduced to Congress in the first six months of 2005 alone.
Domestic regulations addressing the matter continue to gain
momentum. Many of these regulations address the energy
efficiency of buildings.
According to estimates by the Environmental Protection Agency, residential and commercial buildings account for approximately 40 percent of energy and 70 percent of electricity consumed in the US each year. In April, a report by the Energy Information Administration found that of the recommendations made by the National Commission on Energy Policy, those regarding new building efficiency standards were among the recommendations with the largest potential impacts on energy production, consumption, prices and fuel imports.
At the federal level, attempts to increase the overall energy efficiency of America’s buildings include the new energy bill, which includes a deduction for energy efficient commercial buildings. At the local level, at least 46 state, county and city governments have adopted policies requiring or encouraging the use of the US Green Building Council’s Leadership in Energy and Environmental Design (LEED) program, which places a heavy emphasis on energy efficiency among other things.
While energy efficient green building may currently appear to be a niche market, broader market and regulatory trends indicate that energy efficient green building considerations are becoming increasingly important. An article on greening retail in Display & Design Ideas recently noted that, "[M]any retailers and designers...say the seeds are in place for this trend to become entrenched in retail design." According to Nick Axford, head of research and consulting at CB Richard Ellis, "Those who dismiss this as a passing fad or public relations 'greenwash’ do so at their peril."
Several large retailers appear to have recognized this already. Target’s most recent corporate responsibility report, states that, “Target puts tremendous focus on best practices for energy efficient building design and operations.” Staples also emphasizes energy efficient design. According to the company’s director of energy and environmental design, "Energy is [its] competitive advantage."
As concerns about rising energy prices, climate change and
energy security continue to increase, we believe the focus on
energy efficiency will only intensify. For large retail chains
this focus will extend not only to stores but also to the
supporting distribution and transportation networks. It is vital
that our company be well positioned to compete going forward.
Taking action to improve energy efficiency can result in
financial and competitive advantages. Ignoring this quickly
growing trend could position our company as an industry laggard
and expose it to competitive, reputational and regulatory risk.
Resolved:
Shareholders request that the Company assess its response to
rising regulatory, competitive, and public pressure to increase
energy efficiency and report to shareholders (at reasonable cost
and omitting proprietary information) by September 1, 2006.
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