Resolved clauseShareholders request Macy’s issue a report within a year, and annually thereafter, at reasonable expense and excluding confidential information, that discloses short-, medium-, and long-term GHG gas reduction targets aligned with the Paris Agreement’s goal of maintaining global temperature rise at 1.5 degrees Celsius, and progress made in achieving them. Reporting should cover the company’s full range of operational and supply chain emissions.
Whereas clauseAbsent deep reductions in greenhouse gas (GHG) emissions, the Intergovernmental Panel on Climate Change (IPCC) projects continued increases in global surface temperatures, sea levels, extreme weather events, forest fires, and agricultural losses. These environmental changes will increase physical and systemic risks for investors and companies, including supply chain dislocations, reduced resource availability, lost productivity, commodity price volatility, and physical infrastructure damage, and could result in new regulations and transition costs. According to the World Bank (2019), The fashion industry is responsible for 10% of annual global carbon emissions, a larger carbon footprint than international aviation and maritime shipping combined. Leading fashion companies must each do their part to reduce these industry emissions. Yet while Macy’s Inc. (Macy’s) has adopted various piecemeal energy management and GHG reduction measures, the Company does not have GHG emissions reduction goals aligned with the ambition of the Paris Agreement, nor does it have goals that cover operational and supply chain emissions. Without such targets, Macy’s risks falling behind its peers. For instance, the Gap, J. Crew, Kohl’s, and Nordstrom are just four of the 81 retailers worldwide that have committed to set or have set science-based GHG reduction targets (SBTs) through the Science Based Targets initiative (SBTi). H&M has set a 100% renewable energy adoption target through the RE100 initiative, and has pledged to cut its energy use intensity in half by 2030 through EP100. Instituting stronger targets could help Macy’s meet expectations of the 70% of customers who say it is important for brands to be sustainable (IBM and the National Retail Federation, 2020). Proponents believe the company must take more ambitious action to address its full climate impact, the physical risks to its operations and supply chain, and the transition risks associated with new regulation and a global shift from a fossil fuel-based economy.
Supporting statementIn assessing targets, we recommend, at board and management’s discretion: • Taking into consideration approaches used by advisory groups like the Science Based Targets initiative when adopting short-, medium-, and long-term GHG emissions reduction targets; • Developing a low carbon transition plan that shows evidence of implementation to meet your goals; and • Consideration of supporting targets for renewable energy, energy efficiency, and other measures to decrease operational emissions.