Huntington Ingalls Industries | Science based greenhouse gas reduction targets and transition plan at Huntington Ingalls Industries

Status
28.09% votes in favour
AGM date
Previous AGM date
Proposal number
5
Resolution details
Lead filer
Individual
Resolution ask
Set targets or plans
ESG theme
  • Environment
ESG sub-theme
  • GHG targets / emissions
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Shareholder
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request that Huntington Ingalls issue near and long-term science-based greenhouse gas reduction targets aligned with the Paris Agreement’s ambition of limiting global

temperature rise to 1.5QC and summarize plans to achieve them.
Whereas clause
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 in order to limit global

warming to 1.5°C and every incremental increase in temperature above l.5°C will entail

increasingly severe physical, transition, and systemic risks for companies and investors alike.

In its 10-K, Huntington Ingalls Industries, Inc. acknowledges the “business is subject to disruption

caused by natural disasters, environmental disasters, and other events that could have material

adverse effect on [its] financial position, results of operations, or cashflow”. It also states that public

and regulatory concern regarding climate change “may result in more federal, regional, and/or

international requirements to reduce or mitigate global warming, and legislation, international

protocols or treaties, or regulation could mandate stricter limits on greenhouse gas emissions.”

Huntington Ingalls currently does not report its GHG emissions, nor does it have any GHG reduction

targets or a publicly available climate transition plan. Peers Oshkosh and Parker Hannifin have

committed to setting targets through the Science Based Targets initiative, and Jacobs Solutions has

not only published near-term, long-term, and net zero targets validated by SBTi but has also

published a robust climate transition action plan which outlines its strategies to decarbonize its

operations.

Additionally, proposed rules from the Securities and Exchange Commission and California’s passed

SB 253 and SB 261 ask companies for disclosure of emissions, climate risks, and actions being taken

to reduce both. Proposed updates to the Federal Acquisition Regulation in the U.S. would add to

these requirements that major government contractors set science-based emissions reduction

targets.

Huntington Ingalls must take additional action to mitigate both physical risks to its operations and

transition risks associated with already implemented and proposed regulations. Investors believe

the Company should adopt 1.5QC-aligned 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.
Supporting statement
SUPPORTING STATEMENT: In assessing targets, we recommend,



•
Taking into consideration approaches used by advisory groups like SBTi;



•
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 ClimateRelated Financial Disclosures, CDP, Transition Plan Taskforce, and the We Mean Business Coalition;



•
Consideration of supporting targets for renewable energy, energy efficiency, supply chain engagement, electrification and other measures deemed appropriate by management.

Filed by John Chevedden.

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