Resolved clauseRESOLVED: Shareholders request that Chewy, Inc. issue a report describing the company’s environmental, social, and governance (ESG) policies, performance, and improvement targets, including a discussion of greenhouse gas (GHG) emissions management strategies and quantitative metrics. This report should be updated annually, be prepared at reasonable cost, and omit proprietary information.
Whereas clause"Whereas: Substantive reporting allows companies to better integrate and capture value from existing sustainability efforts, identify gaps and opportunities in policies and practices, enhance company-wide communications, and recruit and retain employees.
In fact, 70% of U.S. CEOs believe their ESG programs improve their financial performance according to the KPMG 2022 CEO Outlook survey.[1] Proponents believe tracking and reporting on ESG practices strengthens a company's ability to address financial risks related to climate change and to compete and adapt in today's global business environment, which is characterized by finite natural resources, changing legislation, and heightened public expectations for corporate accountability.
In Chewy, Inc.’s 10-K, the Company acknowledges certain environmental risks by saying “Severe weather, including hurricanes, earthquakes and natural disasters could disrupt normal business operations, which could result in increased costs and materially and adversely affect our business, financial condition, and results of operations.”
The Company has not disclosed qualitative descriptions of its ESG policies nor quantitative metrics conveying the company’s operational ESG performance, its GHG data, or established goals to improve environmental performance. In contrast, Petco, PetSmart, Fresh Pet are examples of pet food industry peers publishing sustainability metrics and improvement targets, alongside qualitative supporting details.
As shareholders, we believe it is prudent for Chewy to disclose how it is managing its ESG impacts, which can pose significant reputational, legal, regulatory, and financial risk to the company and its shareholders. Without appropriate disclosure, investors and other stakeholders cannot adequately assess how the company is managing its material ESG risks and opportunities. "
Supporting statement"SUPPORTING STATEMENTS: Proponents believe Chewy should review the resources and reporting recommendations made by the Global Reporting Initiative, CDP, and the Sustainability Accounting Standards Board in identifying topics to be discussed in this report. These widely accepted platforms suggest topics such as operational environmental impacts (including energy and water use, air emissions and waste management), employee health & safety, and supply chain management.
[1] https://info.kpmg.us/news-perspectives/industry-insights-research/2022-sustainability-reporting.html#:~:text=Of%20the%20world's%20top%20250,to%20assure%20their%20ESG%20metrics"