Metro Inc. | Report on Short and Long-Term Science-Based GHG Reduction Targets at Metro Inc.

Status
AGM passed
Previous AGM date
Resolution details
Lead filer
SHARE - Shareholder Association for Research & Education
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
Consumer Staples
Company HQ country
Canada
Resolved clause
RESOLVED: Shareholders request that Metro Inc. (Metro) report to shareholders prior to the 2025 annual general meeting, at reasonable cost and excluding proprietary information on its management of climate-related risks. The report should include at a minimum:
1.) Disclosure of all material Greenhouse Gas emissions;
2.) Disclosure of the company’s adoption of robust interim and long-term science-based Greenhouse Gas emission reduction targets.
3.) Plans to adopt a comprehensive climate action plan, informed by generally accepted standards such as the Science-Based Targets Initiative.
Supporting statement
SUPPORTING STATEMENT:
In 2018, the Intergovernmental Panel on Climate Change advised that greenhouse gas emissions must be halved by 2030 and reach net zero by 2050 to limit global warming to 1.5°C to prevent the worst consequences of climate change and meet the goals of the Paris Agreement. Companies that fail to align with 1.5°C actions pose material risks to themselves and the financial system as a whole. According to the Canadian Climate Institute, current emission reporting in the retail sector does not adequately depict the extent of these emissions in Canada.
Metro’s 2022 Corporate Responsibility report states that it plans to improve its data collection, particularly on the expansion of scope 3 reporting, work towards the implementation of the Taskforce on Climate-related Financial Disclosures (TCFD), and establish a Climate Change Committee and includes a current goal to reduce only Scope 1 and 2 emissions by 37.5% on a timeline of 2035 compared to a 2020 baseline. Metro has generally stated in its 2022 CDP response that “it aims to better understand its scope 3 emissions” with no timeframe disclosed. Metro is exposed to significant operational, financial, and regulatory risks associated with climate change and a lack of understanding of its full supply chain.
Although Metro has expressed plans to continue its evaluation of the feasibility and costs of achieving SBTi Net-Zero Standard, it lags behind peers. Loblaw has announced plans to reduce enterprise operation footprint by 59% by 2030 from a 2020 baseline, achieve net zero by 2040 for its enterprise operating footprint, and achieve net zero by 2050 for scope 3 emissions. Loblaw has also taken a step to submit its climate action plan to the SBTi for validation. Empire has made similar commitments.
A vote on Proposal # 1, Shareholder proposal on 1.5 degree-aligned greenhouse gas targets at Metro’s 2023 AGM received 28.54% of votes in favour. Metro has declined to meet and discuss consideration or progress on the 2023 proposal. In the intervening months, the company has made limited visible progress toward evaluating or updating its interim and long-term targets.
Metro should take the steps its peers have already taken in setting 1.5°C aligned GHG reduction targets. This would assure investors that it is appropriately managing the urgent and material risk of climate change and will remain competitive.
We urge shareholders to vote FOR this Proposal.

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