Walgreens Boots Alliance | Report on GHG targets and transition plan at Walgreens Boots Alliance

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Company ticker
WBA
Lead filer
Mercy Investment Services, Inc.
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 Staples
Company HQ country
United States
Resolved clause
Shareholders request Walgreens issue a report on climate change, aligning operations and value chain emissions with the Paris Agreement’s ambition of limiting global temperature increase to 1.5°C.The report should set forth near-, medium- and long-term science-based greenhouse gas emissions reduction targets for the Company’s full carbon footprint (scopes 1, 2, and 3) supported by a climate transition plan describing how the company intends to meet the targets. The report should be prepared, at reasonable expense and excluding confidential information, within a year and updated annually thereafter.
Whereas clause
The Intergovernmental Panel on Climate Change (IPCC) has advised that greenhouse gas (GHG) emissions must be halved by 2030 and reach net zero by 2050 to limit warming to 1.5°C and prevent the worst consequences of climate change. Absent deep reductions in GHG emissions, IPCC projects increases in surface temperatures, sea levels, extreme weather events, forest fires, and agricultural losses. These 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.

In its 2021 10-K, Walgreens Boots Alliance (“Walgreens” or “the Company”) noted, “The long-term effects of global climate change present both physical risks...and transition risks...which are expected to be widespread and unpredictable. These changes could over time affect...the availability and cost of products, commodities and energy... which in turn may impact our ability to procure goods or services required for the operation of our business...” Despite acknowledging its climate risk, Walgreens has a modest short-term GHG reduction target that excludes scope 3 emissions and is not aligned with holding warming to 1.5°C.
Walgreens trails its peers in setting science-based GHG reduction targets. CVS Health has near- and long-term targets validated through the Science Based Targets initiative (SBTi) and has pledged to reach net-zero GHG emissions across its value chain by 2050, including a commitment to reduce its scope 3 GHG emissions by 90% by 2050 from a 2019 baseline. Peer companies Walmart and Target also have near-term targets approved by SBTi and have pledged to reach Net Zero emissions by 2050.
There is growing interest from investors in increased transparency of how companies are addressing the climate crisis and plan to transition their business model to one that aligns with limiting warming to 1.5°C. To assist companies in developing viable transition plans, groups including CDP, State Street Global Advisors (SSGA), and Climate Action 100+ (CA100+) have provided guidance for companies on writing comprehensive transition plans adequate to achieve science-based GHG reductions.
Supporting statement
In assessing targets, we recommend, at the board and management’s discretion:
• Using approaches from advisory groups like SBTi when adopting near- and long-term GHG emissions reduction targets;
• Considering climate transition plan criteria used by advisory groups like CDP, CA100+, and SSGA; and
• Setting supporting targets for renewable energy, energy efficiency, and other measures.

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