Skyworks Solutions Inc. | Adopton of GHG emissions reduction targets at Skyworks Solutions Inc.

Status
31.23% votes in favour
AGM date
Previous AGM date
Proposal number
11
Resolution details
Company ticker
SWKS
Lead filer
Green Century Capital Management, Inc.
Resolution ask
Set targets or plans
ESG theme
  • Environment
ESG sub-theme
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Technology
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request that Skyworks adopt independently verified short-, medium- and long-term science-based greenhouse gas emissions reduction targets, inclusive of emissions from its full value chain, in order to achieve net-zero emissions by 2050 in line with the Paris Agreement’s goal of limiting global temperature rise to 1.5 degrees Celsius.
Taking into consideration approaches used by advisory groups like SBTi;
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Developing a transition plan that shows how the Company plans to meet its goals, taking into consideration criteria used by advisory groups such as the Task Force for Climate Related Financial Disclosures
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Consideration of supporting targets for renewable energy, supply chain management, reduction of fluorinated gases, and other measures deemed appropriate by management.
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Whereas clause
WHEREAS: Climate change is creating systemic risks to the economy, and immediate, sharp emissions reductions are required.(1) Publicly-traded corporations both contribute emissions that augment climate change and are subject to multiple risks created by climate change. Lack of comprehensive efforts to curtail emissions threatens investor value, particularly for diversified holders, for whom climate change poses an undiversifiable and unhedgeable risk.(2)
More than 6,500 companies, representing a broad range of industries, have set or committed to set science-based greenhouse gas reduction targets, covering their Scopes 1 — 3 emissions and aligned with a 1.5 degrees Celsius scenario, with the Science Based Targets initiative (SBTi). SBTi provides third-party validation of corporate targets.
By contrast, Skyworks doesn’t track or disclose its value chain (Scope 3) emissions and hasn’t set comparable targets nor sought third party validation of existing targets. The Company’s current target is a 30% reduction of emissions by 2030. However, its target is limited to operational (Scope 1 and 2) emissions and is not aligned with a 1.5 degrees Celsius scenario.(3)
Meanwhile, peers, Analog Devices, NXP Semiconductors, Qualcomm, and Murata Manufacturing, have set or committed to set near-term science-based 1.5 degrees Celsius-aligned targets with SBTi, inclusive of full value chain emissions. Moreover, Analog devices committed to set and Qualcomm has set 1.5 degrees Celsius-aligned net-zero by 2050 and 2040 targets, respectively.
Skyworks’ largest customer, Apple, launched an initiative in 2020 to decarbonize supply chain emissions associated with Apple product manufacturing and announced in September 2023 that 300 manufacturers had committed to sourcing 100% clean energy for producing Apple products by 2030.(4)
Electricity consumption represents the majority of Skyworks’ operational emissions, and its new commitment to Apple’s Supplier Clean Energy Program, could accelerate renewable energy adoption while the Company works to expand renewable energy access for its factories in Mexico, Japan, and Singapore.
By adopting ambitious targets and enhancing value chain disclosures, Skyworks could better align with investor expectations, further prepare
the Company to succeed in a low-carbon economy, and enhance its reputation.

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