As You Sow

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Public Storage: GHG Target Setting

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WHEREAS:  According to the Intergovernmental Panel on Climate Change, the window for limiting global warming to 1.5 degrees Celsius (1.5°C) is quickly narrowing. Investor demand for science-aligned greenhouse gas (GHG) emission reductions reflects the reality that climate change poses a systemic risk to companies and investor portfolios. [1] Failure to reach Net Zero emissions by 2050 is projected to have dramatic economic consequences.[2] Immediate and significant emissions reduction is therefore required of all market sectors.[3]

Shareholders are increasingly concerned about the growing material climate risk to their companies and to their portfolios. The Climate Action 100+ initiative, a coalition of more than 700 investors with over $68 trillion in assets, has issued a Net Zero Benchmark outlining metrics that create climate accountability for companies and transparency for shareholders. The Benchmark requires that companies set short, medium, and long-term GHG reduction targets and create quantitative forward-looking action plans to achieve targets.[4]

As the world’s leading owner and operator of self-storage facilities, Public Storage faces a variety of material climate-related risks. As stated in the Company’s 2022 10-K, in addition to the physical risks posed to company facilities by “increased destructive weather events,” the “transition to a low-carbon economy presents certain risks…including stranded assets, increased costs, lower profitability, lower property values, lower household wealth, and macroeconomic risks related to high energy costs and energy shortages.”[5]

Although Public Storage discloses a 12% by 2025 GHG reduction goal for its operations, this goal is not 1.5°C-aligned, nor is it inclusive of its full value chain emissions.[6] Despite a nearly 35% vote on a 2023 shareholder proposal requesting 1.5°C targets, the Company has failed to act. In contrast, 58 North American companies in the real estate sector have committed to establishing science-aligned GHG targets through the Science Based Targets initiative.[7]

By setting 1.5°C, Paris-aligned GHG reduction targets for its entire value chain, disclosing a climate transition plan, and demonstrating progress toward achieving such goals, Public Storage can provide investors with assurance that management is addressing material climate-related risks and capitalizing on the value-creating opportunities presented by a net zero economy.

BE IT RESOLVED:  Shareholders request that the Board issue short- and long-term Scope 1 through 3 greenhouse gas reduction targets aligned with the Paris Agreement's 1.5°C goal requiring Net Zero emissions by 2050.

SUPPORTING STATEMENT:  Proponents suggest, at management discretion, the Company:

  • Take into consideration approaches used by advisory groups such as the Science Based Targets initiative;

  • Disclose a timeline for setting a Net Zero by 2050 GHG reduction target and 1.5°C-aligned interim targets;

  • Discloses an enterprise-wide climate transition plan to achieve 1.5°C-aligned emissions; and

  • Discloses annual progress towards meeting its emissions reduction goals.


 [1] https://www.ipcc.ch/report/ar6/syr/downloads/report/IPCC_AR6_SYR_LongerReport.pdf p.88

[2] https://www.nytimes.com/2021/04/22/climate/climate-change-economy.html

[3] https://www.ipcc.ch/report/ar6/syr/downloads/report/IPCC_AR6_SYR_LongerReport.pdf p.102

[4] https://www.climateaction100.org/wp-content/uploads/2021/03/Climate-Action-100-Benchmark-Indicators-FINAL-3.12.pdf

[5] https://d18rn0p25nwr6d.cloudfront.net/CIK-0001393311/5673bc31-ec6c-4c71-a2e5-57056b40ee34.html#PSA-20221231_HTM_idcbceb955cc148bc8844018cabe9b51f_175 p.10

[6] https://s1.q4cdn.com/588671402/files/doc_downloads/Sustainable-Moving-Supplies/2023/06/Public-Storage-Sustainability-Report-2023-vF-1.pdf p.10

[7] https://sciencebasedtargets.org/companies-taking-action

Resolution Details

Company: Public Storage

Lead Filers:
As You Sow on behalf of Amalgamated Bank

Year: 2024

Filing Date: 
November 2023

Initiative(s): Climate Change

Status: Resolution Withdrawn, Agreement Reached

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