MARTIN MARIETTA MATERIALS, INC. | Adopt Greenhouse Emissions Reductions Targets at MARTIN MARIETTA MATERIALS, INC.

Status
32.81% votes in favour
AGM date
Previous AGM date
Proposal number
5
Resolution details
Company ticker
MLM US
Lead filer
Amundi
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
Materials
Company HQ country
United States
Supporting materials
  • Notice of exempt solicitation_Amundi.pdf Download
Resolved clause
Shareholders request Martin Marietta Materials, within a year, issue near, medium and long-term science- based GHG reduction targets aligned with the Paris Agreement’s ambition of maintaining global temperature rise to well below 2°C above pre-industrial levels, and pursuing efforts to limit the temperature increase 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 addition, these targets should omit proprietary and personal information.
Whereas clause
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 global warming to 1.5°C.

As investors, we believe failing to meet the Paris Agreement’s goal will have a devastating impact on the value of our clients’ portfolios.

In its 2021 10-K, Martin Marietta Materials (“Martin Marietta”, or “the Company”) noted, "Climate change may result in physical and financial impacts that could have adverse effects on the Company’s operations or financial condition.”1 The Company’s emissions reduction strategy falls short of what is needed to shield it and investors from climate-related risks. The Company does not have emissions reduction targets covering its entire Scope 1 footprint, nor does it have a strategy to limit those emissions.

Without stronger GHG emissions reduction targets, Martin Marietta is falling behind its peers. Construction materials companies such as CEMEX, HeidelbergCement AG, Holcim Ltd., Imerys and many others have already committed to set a long-term net zero target through the Science Based Targets initiative (SBTi) for its entire carbon footprint and has promised to deliver net-zero concrete to all customers globally by 2050.2

There is growing interest from investors for increased disclosure into how companies are addressing the climate crisis and plan to transition their business model to one that aligns with efforts to limit global warming, in line with the Paris Agreement goals. To assist companies in developing transition plans, groups including We Mean Business, CDP, and the Task Force on Climate-Related Financial Disclosures (TCFD) have provided guidance on writing comprehensive transition plans to achieve science-based GHG reductions.

The Science-Based Target initiative (SBTi) has recently released, in September 2022, its guidance for the cement sector3. This guidance is applicable to all companies for which clinker/cement production makes up more than 5% of their greenhouse gas emissions. In Martin Marietta’s case, in 2021, cement production represented 59% of scope 1 emissions.

Proponents believe Martin Marietta must take additional action to address its full climate impact, including the physical risks to its operations and supply chain, and the transition risks associated with new regulation and a global shift to a low carbon economy. The Company can do this by adopting science- based targets for its full carbon footprint supported by a comprehensive transition plan.
Supporting statement
Supporting Statement:
In assessing targets, we recommend, at Board’s discretion:
- Consideration of approaches used by advisory groups, such as the one developed by the SBTi;
- Development of a transition plan that shows how the Company plans to meet its goals, taking into consideration criteria used by advisory groups; and
- Consideration of supporting targets for renewable energy, energy efficiency, and other measures deemed appropriate by management.

How other organisations have declared their voting intentions

Organisation nameDeclared voting intentionsRationale
MNFor

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