In addition to environmental and social harms, climate change is creating systemic risk to the economy, making the corporate sector’s contribution to climate mitigation a significant policy issue. The latest IPCC publication states that the window for limiting global warming to 1.5 degrees Celsius (“1.5°C”), and thereby avoiding the most catastrophic impacts of climate change, is quickly narrowing and that immediate, sharp emissions reduction is required of all market sectors and industries. Shareholders are responding to the growing material climate risk to their companies and their portfolios. The Climate Action 100+ initiative, a coalition of more than 700 investors with over $68 trillion in assets, issued a Net Zero Benchmark (“Benchmark”) outlining metrics that create climate accountability for companies and transparency for shareholders. Indicators 1 through 5 of the Benchmark seek reporting on companies’ net zero emissions ambition; short, medium, and long-term greenhouse gas (GHG) reductions goals; and strategic actions planned to achieve decarbonization targets.
Mueller Industries is a leading manufacturer of copper, brass, aluminum, and plastic products serving customers in a variety of industries. While our Company discloses its combined Scope 1 and 2 emissions, it does not disclose its Scope 3 value chain GHG emissions, nor has it set short or long-term 1.5oC-aligned GHG reduction targets.
To manage climate risk, it is critical that companies set 1.5°C aligned GHG emissions reduction targets to reduce risk, remain competitive, and guide planning and investment decisions. Metal markets are already shifting to lower GHG emissions. General Motors, Ford, and Volvo are moving to procure low-carbon steel. The Science Based Targets initiative lists 26 companies in the ‘Mining – Iron, Aluminum, Other Metals’ industrial sector as committed to or having approved net zero targets, including thyssenkrupp, and SSAB. Tata Steel, Arcelor Mittal, U.S. Steel, and Nucor have made commitments to produce net zero steel by 2050 or earlier. By setting 1.5°C, Paris-aligned GHG reduction targets for its Scope 1 through 3 emissions, disclosing a net zero transition plan, and demonstrating progress toward achieving these goals, Mueller Industries can provide investors with assurance that management is reducing its climate contribution, addressing the risks and opportunities associated with climate change, and remaining competitive.