Resolved clauseIn 2018, the Intergovernmental Panel on Climate Change (IPCC) advised that net greenhouse gas (GHG) emissions must fall 45 percent by 2030 and reach net zero by 2050 to limit warming below 1.5°C thereby preventing the worst consequences of climate change. Absent such deep emissions reductions, the IPCC (2021) projects continued increases in global surface temperatures, sea levels, extreme weather events, forest fires, and agricultural losses. These could, in turn, compel new regulations and transition costs for companies. In its most recent 10-K, Lowe’s states that Our business could be affected by uncharacteristic or significant weather conditions, including natural disasters and changes in climate, which could impact our operations. While Lowe’s has adopted various initiatives to reduce the direct and indirect (scope 1 and 2) greenhouse gas emissions in its own operations, the Company has not set a goal to reduce its emissions in line with the ambition of the Paris Agreement nor does the Company have a goal that covers the scope 3 emissions in its extensive supply chain and in use of its products. As a result, Lowe’s risks falling behind other retailers. Walmart has set a 1.5C science-based target (SBT) verified by the Science Based Targets initiative (SBTi), which includes a 65% reduction in its Scope 1 and 2 emissions, and a commitment to reduce upstream and downstream sources of Scope 3 emissions by one billion tonnes by 2030. Globally, 109 retailers - including Home Depot, Advance Auto, Albertsons, and Target - have committed to adopt or have adopted SBTs. Climate Action 100+ and other investor-led initiatives regard ambitious Scope 1, 2 and 3 GHG reduction targets as critical to a company’s climate risk management. By setting and disclosing science-based GHG emissions reduction targets inclusive of Scope 3, Lowe’s can provide investors with assurance that it is adequately managing its climate risk and capturing climate-related opportunities.
Whereas clauseShareholders request that Lowe’s Companies, Inc. adopt short, medium, and long-term science-based greenhouse gas emissions reduction targets, inclusive of emissions from its full value chain, in order to achieve net-zero emissions by 2050 or sooner and to effectuate appropriate emissions reductions prior to 2030.
Supporting statementWe recommend the company disclose its targets and plans for meeting those targets prior to the next annual meeting, and that the board and management consider: • Drawing upon approaches used by leading global initiatives such as SBTi; • Establishing supporting targets for renewable energy, energy efficiency, fleet electrification, and other measures deemed appropriate by management; • Formulating the company’s plans in a manner that enhances benefits and engagement, and mitigates negative effects, for impacted employees and communities, including people of color communities.