Autonation, Inc. | Report GHG emissions and targets at Autonation, Inc.

Status
Filed
AGM date
Previous AGM date
Proposal number
6
Resolution details
Lead filer
Green Century Capital Management, Inc.
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • GHG targets / emissions
Type of vote
Shareholder proposal
Filer type
Shareholder
Company HQ country
United States
Resolved clause
Shareholders request that AutoNation issue a GHG report disclosing current GHG emissions and any targets for measurably reducing them. The report should be updated annually, prepared at reasonable cost, and omit proprietary information.
Whereas clause
Economic losses from natural disasters attributed to climate change were nearly $750 billion over the last five years. Studies expect 2°C of warming to reduce cumulative economic output by nearly 40% and cost over $38 trillion annually by 2049. Without action, the planet is expected to reach 3°C of warming by the end of the century. A warming climate is associated with systemic and enterprise risks including supply chain disruptions, reduced resource availability, lost productivity, infrastructure damage, and an increase in severe weather that disrupts operations. AutoNation notes in its 10-K that climate change “may serve as a risk multiplier increasing the frequency, severity, and duration of... adverse weather events that may affect our business operations.” AutoNation’s 10-K also states that its business is subject to risk of property loss and underinsured losses due to the physical risks of climate change. The Company’s stores and revenue are concentrated in states with above average climate vulnerability, including Florida, California, and Texas. CARFAX estimated that Hurricane Helene damaged 138,000 vehicles across six states, with the highest rate of damage occurring in Florida. Insurers are passing on rising costs, and auto insurance rates have risen faster than inflation over the past 15 years. AutoNation further recognizes that climate change will lead to mitigative governmental initiatives and changing consumer preferences that could adversely impact business. California legislation will require AutoNation to publish its greenhouse gas (GHG) emissions and report on climate mitigation strategies. While AutoNation has adopted initiatives to reduce energy consumption and increase recycling, the Company does not disclose its GHG emissions or reduction targets. 11,766 companies have set or committed to setting GHG emission reduction targets with the Science Based Targets initiative, and the number of companies setting near-term targets nearly doubled between December 2023 and the end of Q2 2025. Competitors CarMax, Group 1, and Penske Automotive Group have either set GHG emissions reduction targets or begun disclosing GHG emissions. To appropriately respond to climate-related risks and opportunities, remain competitive and protect long-term shareholder value, AutoNation should take additional action to catch up with peers and mitigate the physical risks to its operations and transition risks associated with the global shift to a clean energy economy. 1 2 3 4 5 6 7 8 9 10 11 12 13 https://www.ncei.noaa.gov/access/billions/ https://iopscience.iop.org/article/10.1088/1748-9326/adbd58; https://www.nature.com/articles/s41586-024-07219-0 https://www.bcg.com/publications/2025/investing-in-climate-action? utm_source=university&utm_medium=partner&utm_campaign=climate&utm_description=website&utm_topic=climate_sustainability&utm_geo=global&utm_content=cambridge coi-report-25-updated https://s22.q4cdn.com/689426802/files/doc_financials/2024/ar/AutoNation-2025-Annual-Report.pdf, 22. https://s22.q4cdn.com/689426802/files/doc_financials/2024/ar/AutoNation-2025-Annual-Report.pdf, 22. https://s22.q4cdn.com/689426802/files/doc_financials/2024/ar/AutoNation-2025-Annual-Report.pdf, 6; https://map.climatevulnerabilityindex.org/map/cvi_overall/california? mapBoundaries=Tract&mapFilter=0&reportBoundaries=Tract&geoContext=State https://www.carfax.com/press/hurricane-helene https://yaleclimateconnections.org/2025/01/nobodys-insurance-rates-are-safe-from-climate-change/ https://s22.q4cdn.com/689426802/files/doc_financials/2024/ar/AutoNation-2025-Annual-Report.pdf, 17 https://ww2.arb.ca.gov/our-work/programs/california-corporate-greenhouse-gas-ghg-reporting-and-climate-related-financial https://s22.q4cdn.com/689426802/files/doc_financials/2024/AN25_ESG-Report_FINAL_9_23.pdf https://sciencebasedtargets.org/target-dashboard; https://sciencebasedtargets.org/news/227-jump-in-companies-setting-comprehensive-climate-targets-as-corporate-climate planning-accelerates https://investors.carmax.com/news-and-events/news/news-details/2025/CarMax-Releases-2025-Responsibility-Report/default.aspx; https://www.group1corp.com/image/2024_Group_1_Corporate_Responsibility_Report_FINAL.pdf, 9; https://www.penskeautomotive.com/user_area/content_media/raw/pag_2023corporateresponsibilityreport.pdf
Supporting statement
Proponent recommends, at board and management discretion, that the report includes emissions from vehicles sold or rented by the company.

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