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] In response to the climate crisis, investors are seeking transparent climate-related risk disclosures from companies, including greenhouse gas (GHG) emissions disclosures, to inform their investment decision-making.

Skechers USA, Inc. is one of the largest footwear brands in the world.[2] According to the United Nations Environment Program, the fashion industry accounts for roughly ten percent of global carbon dioxide emissions.[3] As much as 96% of the total emissions of fashion brands come from their value chain,[4] and, as McKinsey notes, supply chain decarbonization is becoming a reputational imperative for businesses.[5]

Supply chain disruptions are one of the largest climate-related risks facing retailers, and the National Retail Federation warns that companies who do not address supply chain climate risk Òpotentially face significant losses.Ó[6] Despite identifying climate risks, including impacts from Ònatural disasters or other catastrophic eventsÓ on its supply chain, as a material risk to the CompanyÕs business, [7] Skechers does not disclose value chain, or Scope 3, GHG emissions, and has no emissions reductions targets.[8]

Skechers significantly lags nearly all its major competitors in addressing climate risk. Deckers Brands, Puma, Adidas, Nike, Under Armour, and VF Corporation have all set reduction targets for their value chain emissions and validated these targets through the Science Based Targets initiative.[9] While Skechers states that it has plans to Òbegin undertaking effortsÓ to measure value chain emissions Òin the future,Ó[10] it has released no timeline for its efforts to measure and disclose value chain emissions, leaving investors without critical information regarding the CompanyÕs efforts to mitigate climate risk.

By publicly releasing a timeline for measuring and disclosing its value chain emissions, Skechers can align with peers and assure investors that it is addressing the growing regulatory, competitive, and physical supply chain risks associated with climate change.