WHEREAS: The Intergovernmental Panel on Climate Change reports that immediate and sustained reductions in greenhouse gas
(“GHG”) emissions are required to align with the Paris Agreement, which seeks to achieve net zero emissions by 2050 and limit the
worst consequences of climate change. Each 1°C temperature increase may reduce global GDP by as much as 12%, contributing
to physical and systemic risks for companies and investors.1 In response to material climate risk, shareholders, including over 600
investors in the Climate Action 100+ coalition, continue to seek clear and consistent climate goals from companies.
Foot Locker, Inc., a global athletic footwear and apparel retailer, is significantly exposed to climate-related risks.2 As disclosed in
its 10-K filing, growing consumer emphasis on sustainability has led the company to acknowledge that falling short on environmental
standards could damage its brand reputation. Moreover, the Company warns that climate change-driven extreme weather events
“could create delays, and inefficiencies in our supply chain,”3 particularly in its key manufacturing countries including China,
Bangladesh, and Vietnam.4
While Foot Locker has taken some steps to reduce its GHG emissions, including installing LED lighting and increasing zeroemission electricity usage, the company lacks GHG reduction targets for its enterprise-wide operations and value chain, which
comprises the largest source of the Company’s GHG emissions.5 The absence of these targets is especially concerning given that
Foot Locker previously announced a net zero commitment and interim targets6 but rescinded this commitment in its latest
sustainability report.7
Foot Locker lags behind its major peers, including Puma, Under Armour, New Balance, Nike, Adidas, and VF Corporation. These
companies have set emission reduction targets in line with the Science-Based Targets initiative and disclosed plans to achieve these
reductions.8 Foot Locker’s failure to adopt operational or value chain targets exposes the company to competitive risks, including
the potential for loss of customer loyalty, eroded brand reputation, and higher long-term operating costs compared to peers.
By setting GHG emissions reduction targets and demonstrating progress to shareholders, Foot Locker can assure investors that
the Company is taking the necessary steps to address the growing risks associated with climate change.