WHEREAS: The Intergovernmental Panel on Climate Change 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. Every incremental increase in temperature above 1.5°C will entail increasingly severe physical, transition, and systemic risks for companies and investors alike.
In its 10-K, Knight-Swift Transportation Holdings, Inc. ("Knight-Swift" or "the Company") acknowledges that requirements to limit vehicle emissions and improve fuel efficiency, many of which are well underway across the U.S., could increase operating costs.
At the same time, The Inflation Reduction Act and Infrastructure Investment and Jobs Act include billions in federal support for clean vehicle and battery manufacturers, purchasers, and charging infrastructure. Knight-Swift could take advantage of transportation sector incentives such as the 45W commercial vehicle tax credits, which are estimated to direct $3.6 billion toward the cost of purchasing zero-emission trucks during the next ten years.
While Knight-Swift has a goal to reduce fleet emissions intensity per mile 50% by 2035, this goal does not align with limiting warming to 1.5°C and notably excludes Scope 3 emissions, which on average make up 70% of companies’ total emissions footprints.i By contrast, almost 7,000 companies have set, or committed to set, science-based targets through the Science Based Targets initiative (SBTi).
Knight-Swift must take additional action to comprehensively address its climate impact and mitigate both the physical risks to its operations and the transition risks associated with new regulation and a global shift to a clean energy economy. Investors believe Knight-Swift should adopt 1.5°C-aligned science-based emissions reduction targets for its full carbon footprint and publish a climate transition plan – detailing the forward-looking, near-term, and quantitative actions the Company will take to achieve its medium and long-term sustainability goals.