96% of Caterpillar shareholders vote in favor of climate action – A critical development in the decarbonization of the industrial sector
BERKELEY, Calif., June 8, 2022 /CNW/ – Today at Caterpillar’s annual general meeting, 96% of investors (according to the company’s preliminary tally) backed a shareholder resolution Dropping by as you sow, Merged bank, Canada Postand TO SHARE.
The resolution calls on the leadership to release a report disclosing interim and long-term greenhouse gas targets aligned with the Paris Agreement goal of keeping global temperature rise to 1.5° C, and the progress made in achieving them. The targets should cover Scope 3 emissions from customer use of products that burn operational fuels, which account for the vast majority of value chain emissions.
“Today’s majority vote is a loud and clear call from Caterpillar owners for the company to address its significant climate impact and take a leadership position in decarbonizing the industrial sector.” , said Ivan Frishbergdirector of sustainable development at Amalgamated Bank.
Caterpillar is a leading manufacturer of construction and mining equipment, engines, turbines and locomotives. Currently, the company has failed to set science-based 1.5°C targets and has no targets covering its emissions from customer use of its products. The Climate Action 100+a coalition of 700 investors with $68 trillion of assets, lists Caterpillar as a Focused Company and one of the world’s largest carbon emitters.
“As demonstrated today, shareholders are championing climate action, and Caterpillar’s response to this vote will dictate their ability to remain competitive in a low-carbon economy,” said Karen Lockridge, Director of ESG Investments at Canada Post Pension Plan.
“Caterpillar’s continued inaction to align its climate goals with the CA100+ Benchmark puts the company and investors at risk as the global economy rapidly moves toward net zero emissions. Investors want to see appropriate targets immediately,” said Antoine Scheindirector of SHARE.
Today’s vote is the result of a multi-year engagement effort to align Caterpillar’s climate strategy with the net zero interests of investors. In 2021 as you sow filed a similar resolution in favor of setting a net zero goal, which received a 48% vote. Despite this significant show of investor support for the stock, the company has not made progress in setting adequate targets over the past year to meet this demand. Its current targets do not incorporate its Scope 3 emissions, and absolute target reductions of 30% of Scope 1 and 2 emissions by 2030, well below the 50% deemed necessary to be aligned with the target of 1 .5°C of the Paris Agreement.
Caterpillar is falling behind industrial peer manufacturers who are embracing ambitious goals and more transparent information. Deere & Company the objectives set reduce Scope 1 and 2 emissions by 50% and Scope 3 emissions by 30% by 2030 and is in the process of validating its 1.5°C alignment targets through the Science Based Targets Initiative. GE set a net zero by 2050 target that explicitly covers emissions produced by the use of the products it sells, such as jet engines and natural gas turbines.
“Investors are beginning to lose faith in management’s ability to control climate risk as the company continues to ignore shareholder expectations that the company will quickly set science-aligned targets to avoid the worst effects of climate change. climate change and develop a transition strategy”, said Daniel Stuartenergy program manager As you sow.
SHARE is a Canadian leader in responsible investment services, research and education for institutional investors and shareholder engagement, advisory and proxy advisory services, education and timely research that helps investors integrate environmental, social and governance issues into the investment management process. share.ca
ABOUT AS YOU SOW
as you sow is the leading non-profit shareholder advocacy organization United States, with 30 years of experience promoting corporate environmental and social responsibility and promoting values-aligned investments. His areas of interest include climate change, ocean plastics, pesticides, racial justice, workplace diversity and executive compensation. Click here for as you sow tool for monitoring shareholder resolutions. asyousow.org
SOURCE SHARE (Association of shareholders for research and education)
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