Ryder System Inc | Climate Change Strategy and Related Impacts on Employment at Ryder System Inc

Status
40.38% votes in favour
AGM date
Previous AGM date
Proposal number
5
Resolution details
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Just Transition
Type of vote
Shareholder proposal
Filer type
Shareholder
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request the Board of Directors prepare a report disclosing how Ryder System, Inc. ("Ryder" or the "Company") is addressing the impact of its climate change strategy on relevant stakeholders, including but not limited to its employees, workers in its supply chain, and communities in which it operates, consistent with the "Just Transition" guidelines of the International Labor Organization and indicators of the World Benchmarking Alliance. The report should be prepared at reasonable cost, omit proprietary information, and be available to investors.
Supporting statement
SUPPORTING STATEMENT: At the 2021 UN Climate Change Conference, the United States and other governments signed the Just Transition Declaration, which aligns with the "Just Transition" guidelines in the International Labor Organization's Guidelines for a just transition towards environmentally sustainable economies and societies for all. This states an environmentally sustainable future requires "anticipating impacts on employment, adequate and sustainable social protection for job losses and displacement, skills development and social dialogue."
(https://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/documents/publication/wcms_432859.pdf)

Those guidelines emphasize the "pivotal role" of employers "in bringing about social, economic and environmental sustainability with decent work and social inclusion." The World Benchmarking Alliance's indicators include discrete, time-based indicators, including those tied to developing a just transition plan through consultation with affected stakeholders; mitigating the negative social impacts of the carbon transition on workers and communities; establishing a clear process for identifying job dislocation risks; and, developing plans to retain and reskill workers for an inclusive workforce.
(See https://assets.worldbenchmarkingalliance.org/app/uploads/2021/07/Just-Transition-Methodology.pdf.)

The transportation sector is one of the largest contributors of greenhouse gas emissions in the United States, and transportation and logistics outsourcing businesses like Ryder (with its fleet of 258,600 vehicles) are key to facilitating a successful energy transition for the sector.

According to its sustainability-related disclosures, Ryder's corporate strategy is influenced by its climate-related risks and opportunities and its role in the energy transition. To this end, Ryder is exploring low carbon or alternative fuel transportation opportunities, including partnering with firms developing advanced vehicle technologies, such as autonomous vehicles, zero emission vehicles and drones, and states that it is "continuously aim[ing] to drive fewer miles." The company has established short-term Scope 1-3 emission reduction targets.

This is laudable; however, Ryder fails to disclose how this will be achieved in a manner consistent with a just transition; this is despite the potentially profound impact – such as from autonomous vehicle deployment-- on its stakeholders, including 10,800 employee drivers, 4,800 technicians, and the tens of thousands of drivers that operate trucks leased from Ryder.

A 2022 study by the World Benchmarking Alliance scored Ryder at 0/20 for its just transition indicator disclosure (https://www.worldbenchmarkingalliance.org/publication/transport/companies/ryder-system/) The report, which evaluated 90 transport companies, warned the sector's lack of preparation for a just transition "plac[es] a workforce of around 10 million people at risk."

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