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Resolution: Energy Efficiency Report
2007 Shareholder Resolution approved by the Advisory Committee on Corporate Social Responsibility (ACCSR)
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Resolution:
Energy Efficiency Report
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, XXXX.
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