RTX Corp: Net Zero Targets & Climate Transition Planning

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WHEREAS:  The Intergovernmental Panel on Climate Change reports that immediate and significant emissions reductions are required of all market sectors to stave off the worst consequences of climate change.[1] Decarbonizing the aviation industry is a critical component of global decarbonization, according to the International Energy Agency.[2] Investor demand for science-aligned emission reductions and transition planning reflects the reality that climate-related risk exposure is growing.[3]

RTX Corporation, a major U.S. defense contractor and industrial corporation, is subject to substantial emerging regulations in both the U.S. and abroad regarding its emission-intensive operations and products.[4] For example, the proposed Federal Supplier Climate Risks and Resilience Rule would require large federal contractors to disclose Scope 1, 2, and 3 emissions and set science-based emissions reduction targets.[5] By reducing emissions from its full value chain in alignment with global goals, RTX can meet new regulatory requirements, increase competitiveness in low-carbon technology development, address new capital deployment needs, and take advantage of low-carbon financial opportunities.

RTX’s current disclosures lack specific, forward-looking, and quantitative action plans that are sufficient to achieve alignment with the global aim of 1.5°C. While RTX has set a science-aligned emissions reduction target for its operations, this goal covers less than 10% of the Company’s total emissions.[6] RTX has yet to set a target to reduce emissions from its value chain, which constitutes 90% of the Company’s overall emissions. This failure to address emissions across its full value chain, coupled with the absence of a comprehensive transition plan, leaves the Company’s exposed to growing climate-related risks.

Aerospace and industrial companies are galvanizing action and investment toward decarbonization. RTX risks falling behind as peers Airbus, BAE Systems, Cisco Systems, Deere & Company, Honeywell, and Safran have established emission reduction targets through the Science Based Targets initiative that cover all scopes of emissions.[7]

By setting science-aligned emission reduction targets across its full value chain and providing a comprehensive transition plan, RTX Corporation can improve its competitiveness against peers, prepare for regulation, and position itself to maximize climate-related opportunities.

BE IT RESOLVED:  Shareholders request that the Board issue a report, at reasonable expense and excluding confidential information, disclosing how RTX intends to reduce its full value chain emissions in alignment with the Paris Agreement’s 1.5°C goal.

SUPPORTING STATEMENT:  Proponents recommend, at Board discretion, that reporting include:

  • A timeline for setting 1.5°C-aligned, near-term emission reduction targets;

  • A timeline for setting long-term net zero goals;

  • A climate transition plan to achieve emissions reduction goals across all relevant emission scopes; and

  • Annual reporting demonstrating progress towards meeting emission reduction goals.

Resolution Details

Company: RTX Corp

Lead Filers:
As You Sow

Year: 2024

Filing Date: 
November 2023

Initiative(s): Climate Change

Status: 25.5% Preliminary Vote

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Proxy Memo

Climate and EnergyAs You SowClimate Change, GHG Emissions, Net Zero, Scope 3, transition plan, aerospace, defense, RTX, Raytheon