WAL-MART STORES, INC. | Report on Refrigerants Released from Operations at WAL-MART STORES, INC.

Status
5.53% votes in favour
AGM date
Previous AGM date
Proposal number
4
Resolution details
Company ticker
WMT
Lead filer
Undisclosed filer
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • GHG targets / emissions
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Consumer Staples
Company HQ country
United States
Resolved clause
Shareholders request that Walmart issue a report, at reasonable cost and omitting proprietary information, describing if and how it plans to limit its impact on climate change by increasing the scale, pace and rigor of its plans to reduce refrigerants released from its operations.
Whereas clause
Hydrofluorocarbons (HFCs), a common class of refrigerants, are super pollutants with global warming potentials (GWP) hundreds to thousands of times greater than CO2. Walmart reported over three million tons of HFC-related GHG emissions in 2019 alone - a fifteen percent yearly increase that accounts for over 47 percent of the Company’s gross global scope 1 carbon footprint. HFCs are found across Walmart’s operations as the critical element in refrigerators, chillers, and cooling and air conditioning systems in stores and vehicles.

Research shows a global phase out of HFCs could preclude up to one-half degree Celsius of warming by 2100. More aggressively addressing HFC emissions would help Walmart achieve its broader climate goals. Walmart has a vague intention towards “improving the performance of our refrigeration systems” and recently announced it is “transitioning to low-impact refrigerants for cooling ... in its stores, clubs, and data and distribution centers by 2040.” Proponents believe these statements lack rigor and clarity. There is no consensus definition for “low-impact” and 2040 is out of sync with global regulations and stakeholder expectations. Strategies to address refrigerant emissions include:

●Replacing HFC refrigerants with ultra-low GWP and non-HFC substances,
●Limiting leakage and ensuring end of life refrigerant recovery by use of good management practices,
●Increasing refrigeration efficiency,
●Establishing quantitative refrigeration targets and action plans.
The Consumer Goods Forum, of which Walmart is a member, is committed to phasing out harmful HFCs and has demonstrated ultra-low GWP refrigerants can be cost- and energy-efficient alternatives. Aldi has over 300 HFC-free stores and has committed to using HFC-free technologies in new stores and in remodeling projects. Target reports having installed over 10,300 HFC-free units in its stores.

The globally ratified Kigali Amendment to the Montreal Protocol mandates a phase out of HFCs beginning with high-income countries in 2019. U.S. lawmakers are considering similar actions. NGO groups have begun campaigning against Walmart’s vague refrigerant strategy.
Supporting statement
The requested report is intended to address refrigerants released from equipment used in Walmart operations, i.e., refrigerators, chillers, and cooling and air conditioning systems in stores and company vehicles, but exclude refrigerants attributable to the sale of products in Walmart stores. Proponents defer to management’s discretion, but believe meaningful disclosure could include consideration of the benefits and drawbacks of approaches such as:

●Plans for adoption of a near-term, quantitative target to reduce refrigerant emissions;
●Plans for the installation of ultra-low GWP refrigerants in new refrigeration systems and equipment; and
●Strategies to substantially reduce the company’s HFC footprint in existing equipment during remodeling or replacement of existing refrigeration systems.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Anima Sgr For
Universities Superannuation Scheme - USS For We would welcome enhanced reporting of climate related risks.

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