Wabtec | Adopt Short and Long-Term Science-Based GHG Reduction Targets at Wabtec

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Company ticker
WB2
Lead filer
Clean Yield Asset Management
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
RESOLVED: Shareholders request Wabtec Corporation, 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
WHEREAS: The Intergovernmental Panel on Climate Change has advised that greenhouse gas (GHG) emissions must be halved by 2030 and reach net zero by 2050 to limit global warming to 1.5°C.
Every incremental increase in temperature above the Paris Agreement’s goal of holding warming to 1.5°C will entail increasingly severe physical, transition, and systemic risks for companies and investors alike. 
In its 2022 10-K, Wabtec Corporation (“Wabtec” or “the Company”) highlighted its climate risk, noting, “Future climate change regulation could result in increased operating costs, affect the demand for our products or affect the ability of our critical suppliers to meet our needs.”
Despite acknowledging its climate risk, Wabtec's mitigation strategy does not appear to be sufficient to shield the Company and its investors from climate-related risks. The Company’s Scope 1 and 2 reduction goals are modest and not aligned with holding warming to 1.5°C. Wabtec does not publicly report or have a goal covering its material Scope 3 emissions.
Wabtec is trailing other companies in addressing its climate risk. Over 4,000 companies have committed to set or have set 1.5°C-aligned science-based targets (SBTs) through the Science Based Targets initiative (SBTi). This includes Wabtec’s customers and potential customers, such as Union Pacific, which has committed to setting a long-term target which will require the company to reduce its Scope 3 emissions by 90-95%. Mining companies including Vale and Freeport McMoRan have also set or committed to setting SBTs through SBTi.
Ramping up its climate-related initiatives may unlock opportunities for Wabtec’s growth by preparing the Company for future climate-related regulations that would affect its operations. With its stated goal of “decarbonizing global transport,[1]” this may help increase existing and potential customers’ trust in Wabtec’s ability to provide solutions for decarbonizing their operations and supply chains.
Investors seek 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°C. 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.
[1] https://www.wabteccorp.com/
Supporting statement
SUPPORTING STATEMENT: In assessing targets, we recommend, at management’s 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; andConsideration of supporting targets for renewable energy, energy efficiency, low-carbon material procurement, and other measures deemed appropriate by management.

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