XPO LOGISTICS, INC. | Report on GHG targets and transition plan at XPO LOGISTICS, INC.

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Company ticker
XPO
Lead filer
Mercy Investment Services, Inc.
Resolution ask
Set targets or plans
ESG theme
  • Environment
ESG sub-theme
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Industrials
Company HQ country
United States
Resolved clause
Shareholders request XPO Logistics, within a year, issue near and long-term science-based GHG reduction targets aligned with the Paris Agreement’s ambition of maintaining global temperature rise to 1.5°C and summarize plans to achieve them. The targets should cover the Company’s full range of operational and supply chain emissions.
Whereas clause
The Intergovernmental Panel on Climate Change has advised that greenhouse gas (GHG) emissions must be halved by 2030 and reach net zero by 2050 to limit global warming to 1.5°C. Every incremental increase in temperature above 1.5°C will entail increasingly severe physical, transition, and systemic risks for companies and investors alike.

In its 202110-K, XPO Logistics, Inc. (“XPO” or “the Company”) noted, “Extreme or unusual weather conditions whether due to climate change or otherwise, can disrupt our operations, impact freight volumes, and increase our costs, all of which could have a material adverse effect on our business results.” Despite acknowledging its climate risk, XPO ‘s mitigation strategy falls short of what is needed to shield the Company and investors from climate-related risks.
XPO trails competitors in setting holistic GHG reduction targets and managing climate risks. DHL Group has committed to set near-term and net zero science-based targets through the Science Based Targets initiative (SBTi). DHL has also committed to invest $7.5 billion towards decarbonization and has pledged to reduce all logistic-related emissions to zero by 2050.
Ramping up the scale, pace, and rigor of its climate-related initiatives will help prepare XPO for future climate-related regulations that may affect its operations. It may also unlock opportunities for growth, enabling the Company to become a sustainable solution for current and potential future customers decarbonizing their supply chains. Investors seek increased disclosure of how XPO is addressing the climate crisis and its plans to transition its business model to one that aligns with limiting warming to 1.5°C.
Supporting statement
In assessing targets, we recommend, at board and management discretion:
• Taking into consideration approaches used by advisory groups like SBTi;
• Developing a transition plan that shows how the Company plans to meet its goals, taking into consideration criteria used by advisory groups and investors like CDP, State Street Global Advisors, and the Task Force on Climate-Related Financial Disclosures;
• Consideration of supporting targets for renewable energy, energy efficiency, zero-emission vehicles, and other measures deemed appropriate by management; and,
• Joining the Corporate Electric Vehicle Alliance, a group of companies that have committed to vehicle electrification.

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