Choice Hotels International Inc | Climate transition plan / GHG reduction goals at Choice Hotels International Inc

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Company ticker
CHH
Lead filer
As You Sow
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Discretionary
Company HQ country
United States
Resolved clause
Shareholders request that the Board issue a report, at reasonable expense and excluding confidential information, disclosing how Choice Hotels intends to reduce its full Scope 1, 2 and 3 value chain greenhouse gas emissions in alignment with the Paris Agreement's 1.5-degree Celsius goal requiring Net Zero emissions by 2050.
Whereas clause
Experts agree that to avoid the most catastrophic effects of climate change, global temperature increase must be limited to 1.5 degrees Celsius. This will require, at a minimum, achieving net zero greenhouse gas emissions by 2050. According to the Intergovernmental Panel on Climate Change, the window for limiting global warming to 1.5 degrees is quickly narrowing. Immediate, dramatic emissions reduction is required of all market sectors.
Investor demand to reduce corporate emissions reflects the reality that climate change poses a systemic risk to portfolios. Failure to reach net zero by 2050 is projected to have dramatic economic consequences. Hotels account for roughly one percent of global carbon emissions. Choice Hotels International, Inc. (Choice Hotels) is one of the largest hotel companies in the world by number of properties, with hotels located in more than 40 countries.
Choice Hotels lacks any emissions disclosures or emissions reduction targets, despite acknowledging in its 10-K that its failure to act responsibly in relation to climate change could increase regulatory risk and result in “damage to our reputation and the value of our hotel brands.”[5] Credible greenhouse gas emissions goals and climate transition plans protect against financial risk, increase economic opportunity, and prepare companies to meet climate regulations which continue to expand globally.
Research indicates that consumers increasingly prioritize sustainable options when traveling,[7] but Choice Hotels significantly lags nearly all its major competitors in addressing climate risk. Hilton Worldwide, InterContinental Hotels Group, Hyatt Hotels, Radisson Hotel Group, and Accor have all set reduction targets for their Scope 1, 2, and 3 emissions and validated these targets through the Science Based Targets initiative. Marriott International has pledged to do the same. By setting science-based reduction targets for its Scope 1, 2, and 3 emissions, disclosing a climate transition plan, and demonstrating progress towards these goals, Choice Hotels can align with peers and provide investors with assurance that it is addressing the regulatory, competitive, and physical risks associated with climate change.
Supporting statement
Proponents recommend, at Board discretion, that the report include:
• Disclosure of all relevant Scope 1, 2, and 3 emissions;
• A timeline for setting 1.5 degree Celsius-aligned near-term reduction goals;
• A timeline for setting long-term net zero goals;
• A climate transition plan to achieve emissions reductions goals across all relevant emissions scopes;
• A rationale for any decision not to set targets aligned with the Paris Agreement’s 1.5-degree goal;
• Annual reporting demonstrating progress towards meeting emissions reduction goals.

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.