Resolved clauseShareholders request BJ’s issue a report, above and beyond existing disclosures, describing if and how it could increase the scale, pace, and rigor of its GHG emissions reduction efforts. The report should be updated annually, prepared at reasonable cost, and omit proprietary information.
Whereas clauseMeaningful reduction of greenhouse gas (GHG) emissions, which are driving climate change, requires an economy wide effort.[1] Acknowledging this, BJ’s Wholesale Inc. (“BJ’s” or “the Company”) agreed to commit to setting a science-based GHG emissions reduction target with the Science Based Targets initiative (SBTi), covering the full range of its emissions.[2] The Company has not delivered on its commitment.
This significant lapse raises concerns about Company leadership and its ability to execute on its commitments. Further, in its own 2021 assessment report, BJ’s identifies climate strategy, energy consumption, and operational and supply chain GHG emissions as material to its business.[3]
BJ’s has initiated efforts to reduce its GHG emissions footprint but has not set timebound goals for implementing reduction measures nor indicated whether it will accelerate its efforts. For example, while the Company has installed rooftop solar systems accounting for ~6 % of its total electricity consumption, it does not disclose plans or goals for future renewable energy procurement or analysis of potential cost savings.[4] Peers – both large and small – disclose clean and renewable energy goals.[5],[6],[7]
Refrigerant leaks constituted a notable 54% of the Company’s direct emissions and 25% of its total operational emissions in 2023.[8] Appropriately, BJ’s participates in an U.S. Environmental Protection Agency program aimed at phasing down potent GHG-containing refrigerants, which requires participants to set annual reduction goals. However, the Company does not actually publish any annual or overarching refrigerant emissions reduction goals.
By contrast, industry peers have set timebound goals to limit refrigerant emissions. Costco has committed to phasing out potent GHG-containing refrigerants by 30% by 2030,[9] and ALDI plans to transition all stores to natural refrigerants by 2035.[10]Kroger has established a zero-tolerance leak-rate policy and publishes details on its refrigerant management program.[11]
As federally mandated cuts on refrigerant manufacturing come into force,[12] BJ’s has yet to articulate a plan describing how it will mitigate risk to its refrigerant supply or manage likely elevated maintenance and retrofit costs.
By demonstrating its ability to more transparently address climate risks, BJ’s could enhance investor confidence and reduce material risks to its business
Supporting statementIn determining relevant content for the report, we recommend, at management’s discretion, taking into consideration:
Approaches used by advisory groups like the SBTi.
Describing strategies, initiatives, metrics, and milestones it could employ to reduce emissions.
Setting timebound targets for renewable energy, energy efficiency, and refrigerant emissions reduction and other measures deemed appropriate by management.