Aecom | Report on GHG emissions offsetting at Aecom

Status
Withdrawn
AGM date
Previous AGM date
Resolution details
Company ticker
ACM
Lead filer
Individual
Resolution ask
Report on or disclose
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 that AECOM provide robust disclosure prominently on the Company website within a year and updated annually thereafter, at reasonable expense and excluding confidential information, on its forward-looking offsetting strategy and any uses of carbon credits.
Whereas clause
"The climate science community has adopted global targets of reducing greenhouse gas (GHG) emissions 45% by 2030 and to net zero by 2050 to prevent the worst climate impacts. Similar goals have been adopted by governments around the world, including the United States.
Adopting a net zero goal implies offsetting emissions. “Offsetting” can describe any action taken outside a company’s value chain to balance a portion of its emissions inside its value chain, such as by purchasing carbon credits. Companies that produce or source agricultural or forestry products may support nature-based solutions (NBS) as a way to reduce emissions or sequester carbon within their own value chains.Some carbon credit projects have suffered from claims that they are unreliable at reducing emissions and may exacerbate social and environmental harm. Companies can overcome these concerns in part by:
• Disclosing their offsetting strategies, including sufficient detail about credits purchased to demonstrate quality and legitimacy;
• Using offsetting and carbon credits to supplement rather than replace their actual emissions reductions; and
• Ensuring all offsetting and carbon credit projects are credibly certified.
Microsoft offers a strong example of carbon credit disclosure, reporting the volume, type, supplier, project, location, certification, and durability of its fiscal year 2021 carbon credits. AECOM says it will reach net zero by 2040 by reducing its GHG emissions by 90%, presumably neutralizing the remaining 10% with carbon removals. AECOM is currently retiring ""high quality carbon credits from external sources.”[2] In 2021, the Company retired carbon credits from wind power projects, however, it has not disclosed any further details.
Furthermore, AECOM says it will use its “own in-house nature-based solution projects for carbon sequestration,”[3] implying that it is relying on carbon credits from within the value chain. However, because the Company does not produce or source agricultural or forestry products, it is unclear if these projects are within the supply chain and if they result in carbon credits. Investors seek greater clarity on AECOM’s use of carbon credits and details about those credits to ensure the Company’s offsetting strategy is free from the concerns mentioned above."
Supporting statement
"This proposal has been filed by John Chevedden
Shareholders recommend, at management’s discretion, the report describe:
• The project name, type, volume, location, certification, and supplier of carbon credits purchased during the previous year;
• If and how credits are accounted for in emissions data;
• If and how the Company plans to measure GHG reductions or carbon removals from its own NBS projects;
• The Company’s standards or policies for purchasing carbon offsets; and
• Any additional certifications achieved by carbon credit projects that demonstrate social or environmental safeguards and benefits beyond climate benefits."

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