UNDER ARMOUR, INC. | Report on GHG reduction goals at UNDER ARMOUR, INC.

Status
Filed
AGM date
Proposal number
4
Resolution details
Company ticker
UA
Lead filer
Green Century Capital Management, Inc.
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • GHG targets / emissions
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Discretionary
Company HQ country
United States
Resolved clause
Shareholders request Under Armour issue a report, above and beyond existing disclosures, summarizing if and how it intends to achieve the company’s existing science-based emissions reduction targets, such as describing credible pathways and needed resource commitments. The plan should be published at reasonable expense, excluding confidential information.
Whereas clause
2024 was the warmest year on record, reaching 1.55°C above the pre-industrial average.1 The chance of at least one of the next five years exceeding 1.5°C of warming has risen steadily since 2015, from nearly zero to 80%. 2 Each 1°C temperature rise reduces global GDP up to 12% and entails increasingly severe physical, transition, and systemic risks for companies and investors alike.3 The footwear and apparel industry is responsible for between 4 to 8.6% of the world’s global greenhouse gas (GHG) footprint.4 Left unchecked, by 2050, it will account for over a quarter of the global carbon budget associated with a 2°C pathway.5 Yet, an analysis of the largest retailers reporting to the CDP found that 63% need to accelerate action to reach their 2030 goals.6 A recent survey of 500 global enterprises also revealed that the lack of a climate transition plan is cited as a top challenge in companies meeting their goals. 7 In its 10-K, Under Armour acknowledges that climate change “may increase volatility in the supply chain... and disruption to the production and distribution of our products,” and “if we fail to adapt accordingly, consumer demand” will be adversely affected. Under Armour set a 2030 science-based target to reduce absolute Scope 1, 2 and 3 emissions by 30% and committed to reach net zero emissions by 2050. Yet, the company has not disclosed a climate transition plan or policies describing how it will achieve these targets across its value chain. Meanwhile, Under Armor’s Scope 3 emissions increased 15% between 2020 and 2021. 8 Scope 3 emissions comprise 98% of Under Armour’s GHG footprint and are thus essential to reducing the climate risks outlined in its 10-K. Industry peers Nike, New Balance, Adidas, and Puma have published detailed climate transition plans disclosing how they will achieve their GHG emissions reduction goals. 25% of companies reporting to CDP (5,906) disclosed having transition plans and an additional 36% (8,200) plan to develop one.9 Beyond competitive risk, Under Armour faces reputational risks when its climate goals are not backed by credible plans to achieve them.10
Supporting statement
In developing and implementing the report, we recommend considering, at management’s discretion: • Providing forward-looking, near-term, and quantitative strategies, metrics, and milestones for achieving the Company's GHG emissions reduction targets; • Considering guidance by advisory groups such as the Transition Plan Taskforce and Task Force for Climate-Related Financial Disclosures; and • Publishing updates on an annual basis to detail any progress or setbacks.

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