GENERAL ELECTRIC COMPANY | Assess Energy-Related Asset Resilience at GENERAL ELECTRIC COMPANY

Status
9.88% votes in favour
AGM date
Previous AGM date
Proposal number
4
Resolution details
Company ticker
GE
Lead filer
Newground Social Investment, SPC
Co-filers
Individual
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
Industrials
Company HQ country
United States
Resolved clause
RESOLVED:  Shareholders ask the Board of General Electric Company (“GE”) to provide an audited report to address how application of the International Energy Agency’s Net Zero Emissions by 2050 pathway would affect the assumptions and estimates that underlie GE’s valuation and expected cash flow assessments. The report should address GE’s existing assets as well as planned investments in renewable energy, nuclear, and thermal power; and include asset lives, asset retirement obligations, and capital expenditures (including new material capital expenditures), as well as potential impairments. The report should be produced at reasonable cost and omit proprietary information.
Supporting statement
SUPPORTING STATEMENT:  Henry H. Barrett has notified us that they intend to submit the following proposal at this year’s meeting:
In 2021, a majority of shareholders voted for a similar proposal that sought disclosure regarding GE’s alignment with a net zero pathway. The Company has not meaningfully responded, and the time to do so is now.
The International Energy Agency’s Net Zero Emissions by 2050 Scenario[1] (“NZE2050”) makes clear that achieving net zero emissions by 2050 implies an extremely limited and narrowing role for fossil fuels in electricity generation. Despite having its own net zero by 2050 target, GE has reported involvement in almost 25 gigawatts of new LNG to power projects in Vietnam and Bangladesh and two LNG import facilities in Bangladesh, planned to operate to 2050 and beyond. 
Recognizing there are transition risks associated with meeting the Paris Agreement’s climate goals and NZE2050, investors are increasingly demanding disclosure of how climate action scenarios would affect key assumptions – including those related to asset lives.  Climate Action 100+[2] has identified companies – including GE – who fail to back their net zero commitments with clear plans, noting particular inadequacies in decarbonization strategy and capital allocation alignment.[3]
GE continues to rely on gas demand scenarios[4] that fail to meet net zero emissions by 2050 and, therefore, risk leaving assets stranded.
Given GE’s plans to spin off its power businesses into a new entity, GE Vernova, investors need more disclosure from the company regarding the risks to its assets.  
A majority of GE’s shareholders voted for a similar proposal in 2021 that sought disclosure on the company’s alignment with a net zero pathway.  This proposal builds upon the 2021 resolution, and seeks decision-critical information for investors that we hope will demonstrate the resilience of GE’s energy-related assets within the context of a credible net zero by 2050 pathway.  
THEREFORE:  Vote FOR GE’s future resilience and profitability by supporting this proposal.  Thank you. 
[1] www.iea.org/reports/world-energy-outlook-2022  
[2] www.climateaction100.org/wp-content/uploads/2022/01/Climate-Action-100-2021-Progress-Update-Final.pdf  
[3] www.climateaction100.org/company/general-electric-company  
[4] www.ge.com/content/dam/gepower-new/global/en_US/downloads/gas-new-site/future-of-energy/ge-future-of-energywhite-paper.pdf  

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Anima Sgr For A vote FOR this proposal is warranted because shareholders would benefit from an audited report on the impact of the IEA's Net Zero Emissions by 2050 scenario as it would give the shareholders a clear insight regarding the alignment between the company's investments in liquified natural gas in Vietnam and Bangladesh, compared to the assumptions of the International Energy Agencies Net Zero Emissions by 2050 Scenario, as well as the company's strategy to reach its net zero commitment, particularly as it related to its decarbonization strategy and capital allocation alignment. (item 8 according to my agenda).

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