Resolved clauseRESOLVED: Shareholders request that Columbia adopt targets for measurably reducing
its GHG emissions—and report annually, at reasonable expense and excluding
proprietary information, on its progress toward those targets.
Whereas clauseWhereas: The Intergovernmental Panel on Climate Change (IPCC) advises that
greenhouse gas (GHG) emissions must be halved by 2030 and reach net zero by 2050 to
limit global warming to 1.5 °C. Each 1°C temperature rise reduces global GDP up to 12% and entails increasingly severe physical, transition, and systemic risks for companies and
investors alike.1
The Science Based Targets initiative (SBTi) advises the apparel and footwear industry to
reduce emissions at least 4.2% per year to limit warming to 1.5°C.2
Yet, an analysis of
the largest retailers reporting to CDP found that 63% will need to accelerate emissions
reductions to reach their 2030 goals.3
Without action, the industry’s GHG emissions are
expected to increase nearly 30% by 2030.4
In its 10-K, Columbia Sportswear Company (Columbia) acknowledges that “climate
change and natural disasters... could disrupt our operations, the operations of our vendors
and other suppliers or result in economic instability.” CEO Tim Boyle recently asserted
that “warm weather has curbed early season demand for Fall 2024 cold weather product”
and negatively impacted 2023 sales.5
Further, Climate change is poised to produce more
intense and frequent weather events in Columbia’s critical manufacturing countries,
including Vietnam, Bangladesh, and China.6
By 2030, extreme weather could jeopardize
nearly $65 billion worth of exports in the footwear and apparel industry7
Although Columbia committed to a 30% reduction in Scope 3 manufacturing emissions
by 2030 in 2020, it stopped tracking and reporting on this goal in 2023 and has yet to
adopt new GHG reduction targets. Further, Columbia’s prior target failed to meet SBTi
recommendations that Scope 3 targets cover at least 67% of Scope 3 emissions.8
Without
ambitious science-based targets to reduce GHG emissions, investors are unable to
determine if Columbia is sufficiently mitigating climate-related risks.
Columbia lags its peers in the footwear and apparel industry. Competitors Nike, Deckers
Outdoor Corp., VF Corp., Puma, Under Armour, New Balance, Adidas, Amer Sports,
Lululemon, and Hanesbrands are among the 563 textiles, apparel, and footwear
companies with SBTi verified emissions reduction targets or commitments to establish
them.9
Nike, New Balance, Adidas, and Puma have also disclosed climate transition plans
to achieve GHG emissions reduction goals.
Supporting statementSupporting Statement
In assessing targets, proponents recommend, at the board and management’s discretion:
Including the full range of Columbia’s operational and supply chain emissions;
Seeking independent verification of emissions estimation and disclosure;
Considering frameworks, benchmarks and processes developed by credible third parties
such as SBTi, IPCC, Transition Plan Taskforce, and Task Force for Climate-Related
Financial Disclosures.
A copy of the Proposal, as well as related correspondence from the Proponent, is attached to this
letter as Exhibit A. A copy of additional communications with the Proponent following
submission of the Proposal is attached to this letter as Exhibit B.