STERIS plc | Climate Transition Plan and GHG Reduction Goals at STERIS plc

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Company ticker
STE
Lead filer
CorpGov.net
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
Health Care
Company HQ country
United States
Resolved clause
Resolved: Shareholders request STERIS (or “the Company”) issue near and long-term science-based greenhouse gas (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.

In assessing targets, we recommend the following:
Taking into consideration approaches used by advisory groups like Science Based Targets initiative[1](SBTi);
Developing a transition plan that shows how the Company plans to meet its goals, taking into consideration criteria used by advisory groups; and
Supporting targets for renewable energy, zero-emission vehicles, energy efficiency, and other measures deemed appropriate by management.
Supporting statement
Supporting Statement: The Intergovernmental Panel on Climate Change[1] advises that GHG emissions must be halved by 2030 and reach net zero by 2050 to limit global warming to 1.5°C, avoiding the worst impacts of climate change. Every incremental increase in temperature above 1.5°C entails increasingly severe physical, transition, and systemic risks for companies and investors alike.
In a 10-K, STERIS notes that it “may be adversely affected by global climate change or by legal, regulatory or market responses to such change.” Despite acknowledging its climate risk, STERIS’ mitigation strategy falls short of what is needed to shield the Company and its investors from climate-related and reputational risks. The Company does not disclose its Scope 1, 2, or 3 emissions and has not set science-based GHG reduction targets aligned with limiting warming to 1.5 degrees.
By contrast, competitors like Boston Scientific, Ecolab, and Getinge have set, or committed to set, science-based 1.5°C-aligned targets through the SBTi. Fortive, Owens & Minor, and Stryker have set operational GHG reduction targets and are evaluating their Scope 3 emissions. In addition to GHG targets, 3M has quantitative, time-bound goals for increasing renewable energy use and improving energy efficiency.
Investors increasingly seek disclosure of how companies address climate risk and plan to transition their business models in line with limiting warming to 1.5°C. To assist companies in developing viable climate transition plans, groups including We Mean Business, Global Financial Alliance for Net Zero, State Street Global Advisors, and the Task Force on Climate-Related Financial Disclosures have provided guidance.
STERIS should comprehensively address its climate impact and mitigate the physical risks to its operations, the transition risks associated with new regulations, reputation risks, and the global shift to a clean energy economy. Adopting 1.5°C-aligned science-based targets for its full material carbon footprint will help the Company mitigate these risks and will enhance shareholder value.
[1] https://sciencebasedtargets.org/ 
[2] https://www.ipcc.ch/
 

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