SUPPORTING STATEMENT: Dear fellow shareholders,


Governance concerns have arisen about how the board oversees Weis’ management of climate change risks.


For context, consider that the regulatory filings of major retailers now commonly disclose supply chain risks regarding climate change. For example:

•As Walmart warns, the “physical risks” from climate change, like “extreme weather conditions, drought, or rising sea levels” can “affect the production or sourcing of certain commodities.”

•Similarly, Kroger cautions that “[T]he effects of climate change, including those associated with extreme weather events, may affect our ability to procure needed commodities at costs and in quantities that are optimal for us or at all.”

•And Albertsons describes how “climate changes may adversely affect our business,” saying that “As extreme shifts in climate conditions make it more difficult to raise and produce crops, livestock, and seafood, there may be a decrease in the product quality and the yield quantity of food products. Consequently, such a decreased food supply may adversely affect the availability or cost of certain products within the grocery supply chain, which could lead to shortages or reduced gross profit margins as such products become more expensive.”


These disclosures make sense, as even failing to disclose risks can create risks, which the Board should be scrutinizing and vigilantly avoiding.


Yet Weis’ 10-Ks hardly mention any specific supply chain risks; the topic is only covered at a shockingly low level. And they disclose no supply risks whatsoever from climate change (or even severe weather in general).


That position is wildly incongruous with the disclosures of Weis’ competitors. It’s also inconsistent with recent comments made by Weis’ own chief merchant: in an interview, Bob Gleeson (SVP of Merchandising), described supply challenges and costs Weis has faced from record heat and drought.


Moreover, many other companies which have disclosed supply chain risks from climate change have also established measurable goals for reducing supply chain emissions. But not Weis: although Weis does disclose some operational emissions data, it’s never disclosed measurable targets for reducing emissions throughout its supply chain or operations.


In the face of such materially consequential concerns, this must raise questions about whether the Board even recognizes, let alone adequately manages, climate change risks.


Thus, we believe an explanation is now needed regarding how the Board is overseeing Weis’ management of climate change risks, especially those related to its supply chain.

Filed by the Accountability Board.