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Resolution: Climate Change Report
2007 Shareholder Resolution approved by the Advisory Committee on Corporate Social Responsibility (ACCSR)
Download this resolution in a printer-friendly format (pdf)
Resolution:
Climate Change Report
WHEREAS:
Carbon regulation is increasing as state and local level
support for addressing climate change builds. More than 350
mayors have pledged to meet Kyoto’s targets for reducing
greenhouse gas (GHG) emissions. At the state level,
regulations addressing GHG emissions now exist in 28 states.
Support for measures addressing climate change is also
increasingly being demonstrated at the federal level. In
June of 2005, the Senate passed a non-binding “Sense of the
Senate” resolution recognizing the need for a mandatory cap
on GHG emissions. According to Investor’s Business Daily,
“[M]any in Washington are coming to view rigorous greenhouse
gas legislation as inevitable.”
These developments are being reinforced by corporate
acceptance of the need to address climate change. A 2004
Conference Board report declared that, “The global economy
will become less carbon-intensive over time...The real
questions are what the pace of the transition will be and
who will be the winners and losers...businesses that ignore
the debate over climate change will do so at their peril."
There is increasing recognition that climate change will
have important impacts on all sectors. According to
Institutional Shareholder Services, “...the scope of impact
has expanded beyond the industries generally associated with
emissions (energy, oil/gas, auto)...climate change has a
measurable impact on companies in all industries.”
Analysts at firms such as Goldman Sachs, McKinsey and
JPMorgan Chase have publicly recognized the possible
financial implications of climate change and have raised
concerns about companies that do not adequately disclose
them.
A recent article in Inside Green Business reviewed a new
study that demonstrates that the retail sector accounts for
a large percentage of GHG emissions once supply chain and
energy inputs are accounted for, which could shift some of
the burden for reducing GHGs from power generators to
retailers.
Other retailers such as Home Depot and Wal-Mart have
committed to addressing climate change and reducing their
emissions and have even encouraged Congress to regulate GHG
emissions.
A 2006 shareholder resolution seeking a report on corporate
energy efficiency efforts garnered more than 27% of the
votes cast, a request to which Bed Bath and Beyond's
management has not substantively responded to date.
Our company has failed to adequately complete the Carbon
Disclosure Project survey, whose fourth iteration has gained
significant investor support, including 225 institutional
investors with assets of more than $31 trillion under
management.
RESOLVED:
The shareholders request that the Board assess how the
company is responding to rising regulatory, competitive, and
public pressure to address climate change and report to
shareholders (at reasonable cost and omitting proprietary
information) by December 1, XXXX.
SUPPORTING STATEMENT:
We believe management has a fiduciary duty to carefully
assess and disclose to shareholders all pertinent
information on its response to climate change. We believe
taking early action to reduce emissions and prepare for
standards could provide competitive advantages, while
inaction and opposition to climate change mitigation efforts
could expose companies to regulatory and litigation risk and
reputational damage.
Download this resolution in a printer-friendly format (pdf)
