Air Transport Services Group Inc | Report on GHG targets and transition plan at Air Transport Services Group Inc

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Company ticker
ATSG
Lead filer
Individual
Resolution ask
Set targets or plans
ESG theme
  • Environment
ESG sub-theme
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Industrials
Company HQ country
United States
Resolved clause
Shareholders request Air Transport, within a year, issue near and long-term science-based GHG reduction targets aligned with the Paris Agreement’s ambition of maintaining global temperature rise to 1.5°C and summarize plans to achieve them. The targets should cover the Company’s full range of operational and supply chain emissions.
Whereas clause
The Intergovernmental Panel on Climate Change has advised that greenhouse gas (GHG) emissions must be halved by 2030 and reach net zero by 2050 in order to limit global warming to 1.5 degrees Celsius and avoid the worst impacts of climate change. Every incremental increase in temperature above 1.5 degrees will entail increasingly severe physical, transition, and systemic risks for companies and investors alike.
In its 2021 10-K, Air Transport Services Group (“Air Transport” or “the Company”) says that it “may be negatively affected by global climate change or by legal, regulatory or market responses to such climate change.” Despite acknowledging these risks, Air Transport’s mitigation strategy falls short of investor expectations. The Company does not disclose its Scope 1, 2, or 3 emissions and has not set science-based GHG reduction targets aligned with limiting warming to 1.5 degrees. By contrast, over 4,000 companies have set, or committed to set, ambitious 1.5 degree-aligned science-based targets (SBTs) through the Science Based Targets initiative (SBTi). This includes many major airlines, as well as Air Transport’s customers. DHL has already set a near-term 1.5 degree-aligned target with SBTi and Amazon is committed to setting one. DHL is also committed to setting a net zero target through SBTi.
There is growing interest from investors in increased disclosure of how companies are addressing the climate crisis and planning to transition their business models to ones that align with limiting warming to 1.5 degrees. To assist companies in developing viable transition plans, groups including We Mean Business, CDP, State Street Global Advisors, and the Task Force on Climate-Related Disclosures have provided guidance. Ramping up its climate-related initiatives may unlock opportunities for Air Transport’s growth by preparing the Company for future climate-related regulations that would affect its operations. The Company may also increase its competitiveness by becoming a sustainable solution for customers who are decarbonizing their supply chains.
Supporting statement
In assessing targets, we recommend, at management discretion:
• Taking into consideration approaches used by advisory groups like SBTi;
• Developing a transition plan that shows how the Company plans to meet its goals, taking into consideration criteria used by advisory groups; and
• Consideration of supporting targets for sustainable aviation fuel, energy efficiency, and other measures deemed appropriate by management.

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