Resolved clauseRESOLVED: Shareholders request that Berry produce a report within a year, at reasonable expense and excluding confidential information, that discloses near- and long-term operational (scope 1 and 2) GHG reduction targets aligned with the Paris Agreement’s goal of maintaining global temperature rise at 1.5 degrees Celsius. The report should be released yearly to provide updates on progress toward these targets, as well as any revisions to the goals.
Whereas clauseWHEREAS: In its 2023 synthesis report, the Intergovernmental Panel on Climate Change (IPCC) reiterates the urgent need for near-term action to limit global warming below 1.5 degrees Celsius. The report echoes the IPCC's 2018 findings that achieving a 45 percent reduction in net greenhouse gas (GHG) emissions by 2030 and reaching net zero by 2050 is essential to avert the worst impacts of climate change.
The urgency of this message is underscored by the IPCC's 2021 data, which projects that without decisive action, we can expect increases in global temperatures, sea levels, extreme weather events, forest fires, and agricultural losses. Such environmental shifts could exacerbate risks for investors and companies, including disruptions in supply chains, reduced resource availability, lost productivity, and increased commodity price volatility. These factors could necessitate new regulations and transition costs, further impacting businesses.
Oil and gas companies face heightened climate-related vulnerabilities. Companies like Antero, California Resources or Hess have committed to net zero and set short- or medium-term emissions reduction targets. Companies responsible for nearly 40 percent of global oil and gas production, including APA, Civitas, Coterra and Devon, have joined the Oil and Gas Methane Partnership 2.0 and set methane emissions reduction targets. Increasingly, companies that do not adequately manage greenhouse gas emissions risk their reputation and license to operate.
Despite committing to setting a scopes 1 and 2 reduction target in 2022, Berry has not set any target nor committed to aligning with a 1.5 degree Celsius scenario, and fails to address scope 3 emissions from its supply chain and product usage. More ambitious action is imperative to comprehensively manage the company's climate-related risks.
Supporting statementSUPPORTING STATEMENT:
In assessing targets, we recommend, at management’s discretion:
- Pursuing alignment with internationally recognized 1.5 degree aligned pathways such as those outlined by the IPCC or International Energy Agency;
- Considering resources from advisory groups such as such as Task Force for Climate-Related Financial Disclosures, Transition Plan Taskforce, Transition Pathway Initiative, Climate Action 100+, and the IIGCC Net Zero Standard for Oil and Gas;
- Considering setting additional targets for methane emissions, flaring, renewable energy, energy efficiency, alternative fuels production and other measures deemed appropriate by management; and
- Committing to reduce local community health impacts from cumulative operational emissions.