GENERAL ELECTRIC COMPANY | Climate transition plan and GHG reduction goals at GENERAL ELECTRIC COMPANY

Status
Filed
Previous AGM date
Resolution details
Company ticker
GE
Lead filer
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • GHG targets / emissions
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Industrials
Company HQ country
United States
Resolved clause
RESOLVED: ÊShareholders request that GE issue a report, at reasonable cost and omitting proprietary information, assessing the risks and opportunity costs of continued capital investment into high-carbon energy products as compared to renewable energy products.
Whereas clause
WHEREAS: The Intergovernmental Panel on Climate Change reports that immediate and significant emissions reductions are required to stave off the worst consequences of climate change.[1] Decarbonizing the energy sector, which accounts for nearly 75% of global greenhouse gas (GHG) emissions, is critical to achieving the global 1.5 degree Celsius (1.5¡C) Paris goal.[2]

Despite the need for swift action to reduce GHG emissions, the General Electric Company (GE), whose technology is used to produce 30% of global electricity, continues to expand global reliance on fossil fuels through the sale of high-emitting, long-lived products including natural gas-powered turbines and liquid natural gas infrastructure.[3] The emissions from downstream use of these carbon-intensive products accounts for 90% of GEÕs total carbon footprint.[4] Continued investments in such high-carbon energy infrastructure locks in high emissions for decades, jeopardizing the achievement of global net zero targets.[5]

In the past year, GEÕs sales of natural gas-powered turbines have increased.[6] While GE has a future goal of producing 100% hydrogen-capable turbines by 2030,[7] use of hydrogen is not currently commercially feasible,[8] nor can GE require turbine customers to actually use high-cost hydrogen in their turbines. Similarly, GEÕs proposed future integration of renewable natural gas and carbon capture into its energy infrastructure poses long-term scalability and cost hurdles.

On the other hand, GE is currently experiencing Òunprecedented growth in demand for onshore and offshore wind turbines,Ó and it notes the Inflation Reduction Act Òis expected to resolve recent U.S. policy uncertainty... and significantly increase near- and longer-term demand in the U.S. for onshore and offshore wind projects.Ó[9]

In 2021, nearly 98% of shareholders voted in support of GE disclosing its intent to align with a Net Zero goal. The CompanyÕs continued sale of high-emitting gas products is contrary to this goal and exposes the Company to the physical, regulatory, and market risks of an economy rapidly transitioning away from fossil fuel energy.
Supporting statement
SUPPORTING STATEMENT: The report should assess, at Board discretion:

The regulatory, transition, stranded asset, climate, and competitive risks associated with continued investment in natural gas-powered products;

The comparative benefits and risks of investing in the CompanyÕs renewables segment; and

The extent to which continued investment in high-carbon natural gas products conflicts with GEÕs commitment to the Paris AgreementÕs 1.5oC goal.

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.