DEERE & COMPANY | Right to Repair at Deere & Company

Status
Withdrawn
AGM date
Resolution details
Company ticker
DE
Lead filer
Green Century Capital Management, Inc.
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Waste and pollution
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Industrials
Company HQ country
United States
Resolved clause
Shareholders request that the Board issue a report, at reasonable cost and omitting proprietary information, on the emerging state and federal Right to Repair legislation and the Company’s explanation of underlying issues giving rise to those policy proposals.
Whereas clause
Deere & Company (Deere) customers rely heavily on timely equipment repair to be successful agricultural producers. Yet according to a wide range of media reports, farmer testimony, and research and analysis, Deere restricts access to certain repair materials, which can result in costly downtime for customers and lead to material risks for the Company. These restrictions to independent repair may cause Deere to be exposed to increased regulatory risks from growing support for Right to Repair ‘’ legislation, which requires agricultural equipment manufacturers to provide access to diagnostic software, parts, instructions, and additional repair materials in order to ensure competition and choice in repair markets. In 2021, a total of 24 states debated Right to Repair legislation, and similar legislation, called the Fair Repair Act, was introduced in Congress. Additionally, new rulemaking by the Federal Trade Commission (FTC) on anti-competitive repair practices may expose Deere to serious legal risks. In July 2021, President Biden signed an executive order calling for the FTC to develop rules on unfair anticompetitive restrictions on third-party repair… imposed by powerful manufacturers that prevent farmers from repairing their own equipment. Should the FTC determine that Deere’s repair policies are anticompetitive, it could choose to bring a lawsuit. Because of the size of Deere’s market share, the Company could also be subject to lawsuits on tying arrangements. Withholding certain repair materials from farmers and independent repair businesses has generated negative media coverage in a wide range of high-profile outlets. Stories in the Wall Street Journal, National Public Radio, CBS Sunday Morning and many other leading outlets have critiqued Deere’s stance, and given voice to customers who feel mistreated by the Company. Company representatives argue that Deere provides materials to support almost all equipment repairs, yet the regulatory, legal, and reputational risks posed to the Company continue to escalate. Investors seek insight into the value of limiting access to the remaining repair materials versus the risks that the Company is incurring by withholding them.
Supporting statement
The report should, at Board discretion, assess, among other issues: • The benefits or harms of making all dealership repair materials available to customers and independent mechanics; • Implications of state and federal Right to Repair laws for the company’s finances and operations; • Reputational risks associated with customer dissatisfaction giving rise to the legislation.

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