Ross Stores Inc: Net Zero Climate Transition Plan
WHEREAS: The increasing rate and number of climate related disasters affecting society is causing alarms to be raised globally, making the corporate sector’s contribution to climate mitigation a significant policy issue.
In addition to environmental and social harms, climate change creates substantial systemic risks to the economy. The Commodity Futures Trading Commission underscored that climate change could impair the productive capacity of the U.S. economy.
Shareholders are increasingly concerned about material climate risk to both their companies and their portfolios. The Climate Action 100+ initiative, a coalition of more than 617 investors with over $55 trillion in assets, issued a Net Zero Benchmark (Benchmark) calling on companies to develop targets and a plan to reduce their scope 1-3 greenhouse gas (GHG) emissions to net zero.
A failure to comply with Benchmark goals and disclosures is likely to pose a material risk to Ross and its shareholders. BlackRock’s CEO notes that investment flows into sustainable and climate aligned assets will drive long term outperformance and that companies should disclose plans for how their business model will be compatible with a net zero economy.
A core indicator of company alignment with the Paris Agreement is Benchmark Indicator 1 , titled “Net Zero GHG emissions by 2050 (or sooner) ambition” (Net Zero Indicator), which seeks disclosure on whether the company has set an ambition to achieve net zero GHG emissions by 2050 and whether such ambition explicitly includes scopes 1, 2, and relevant scope 3 (including product) emissions.
Ross Stores, Inc. is the nation’s largest off-price retail chain. Our Company has established a target to reduce its Scopes 1 and 2 GHG emissions per square foot of retail space by 30% by 2025. However, our Company lacks targets to reduce its Scope 3 emissions including freight and supply chain GHG emissions and has not disclosed a plan for how to achieve Paris-aligned, net zero emissions reductions by 2050.
By setting Scope 3 GHG emissions reduction targets, a net zero by 2050 ambition, and developing a climate transition plan in line with achieving such goals, Ross can provide investors with assurance that management is reducing its climate contribution in line with global goals and addressing the growing risks of climate change, benefitting both the company and investors.
BE IT RESOLVED: Shareholders request the Board issue a report at reasonable cost and omitting proprietary information evaluating and disclosing how the Company intends to measure and begin reducing its supply chain GHG emissions in alignment with the Benchmark and the Paris Agreement's 1.5 degree goal requiring net zero emissions by 2050.
SUPPORTING STATEMENT: Proponents suggest, at Company discretion, the report also include:
A timeline for measuring all relevant Scope 3 emissions
A timeline for setting a net zero GHG reduction target for the Company’s full scope of emissions
A timeline for developing a Paris-aligned climate transition plan
Any rationale for not setting and disclosing goals aligned with the Net Zero Indicator
Resolution Details
Company: Ross Stores Inc
Lead Filers:
As You Sow
Year: 2022
Filing Date:
December 2021
Initiative(s): Say On Climate
Status: Resolution Withdrawn, Agreement Reached