BERKSHIRE HATHAWAY INC. | Board of directors report GHG emissions data and net zero goal at Berkshire Hathaway Inc.

Status
Filed
AGM date
Previous AGM date
Proposal number
3
Resolution details
Company ticker
BRK/A US
Lead filer
Illinois State Treasurer's Office
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • GHG targets / emissions
  • Net Zero / Paris aligned
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Financials
Company HQ country
United States
Resolved clause
Resolved: Shareholders of Berkshire Hathaway Inc. (the “Company”) request that its Board of Directors (the “Board”) disclose, in a consolidated annual report (at reasonable expense and omitting proprietary information) greenhouse gas (GHG) emissions data by scope, as well as progress towards its net-zero decarbonization goal, for Berkshire Hathaway Energy (“BHE”).
Supporting statement
Supporting statement: Given that BHE is one of the Company’s largest emitters, and that it is among the top 10 largest owners of US coal power capacity in the country15, we are calling on BHE to enhance its sustainability reporting practices. While we recognize that BHE has taken steps to disclose emissions and decarbonization data,16 the disclosure is insufficient for investors to understand the company’s emissions profile in aggregate and progress towards achieving its net-zero goal. Most importantly, BHE does not follow globally recognized best practices for disclosure of emissions data by breaking it down by scope17; rather, it presents emissions data by the Company’s operating segments (i.e., owned generation and purchased power).

We encourage BHE to follow best practices when it comes to reporting its emissions. The Task Force on Climate-related Financial Disclosures (TCFD), which is currently supported by over 4,850 organizations worldwide and fully incorporated into the International Sustainability Standards Board (ISSB) disclosure standards18, includes reporting emission data by scope in its list of recommended disclosures19. BHE is currently falling behind its competitors when it comes to emissions disclosures. For example, both Pacific Gas20 and Edison International21 disclose their emission data as recommended by the TCFD, including the breakdown of emissions by scope.

In addition to more streamlined disclosure of emissions data, we recommend BHE disclose data on the progress of its net-zero and decarbonization goals. We applaud BHE for establishing long-term and intermediary net-zero targets, as well as plans to retire its coal plants and natural gas units22. However, in order to facilitate a clearer analysis of the initiatives in place and credibility of the Company’s long-term goals, BHE should present these initiatives alongside emissions data by scope. Other US-based energy companies consolidate this information in a single report, such as Sempra Energy23, PPL Corporation24, Duke Energy25, and ConocoPhillips26.

Furthermore, domestic regulation at both the state27 and federal28 level is likely to require that the Company disclose emission data by scope. Therefore, in addition to providing more decision-useful information for investors, standardized reporting would prepare the Company for compliance requirements.

Therefore, we recommend that BHE disclose:

1. Scope 1 and 2 emissions data for all of its operating companies.

2. Steps to be taken in its decarbonization strategy to reach intermediate and long-term goals.

3. Progress BHE has made on reaching its intermediary and long-term goals.

We urge shareholders to vote FOR this proposal.

How other organisations have declared their voting intentions

Organisation name Declared voting intentions Rationale
Robeco For

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