Resolved clauseShareholders request Danaher issue a report, at reasonable cost and omitting proprietary information, describing if, and how, it plans to reduce its total contribution to climate change and align its operations with the Paris Agreement's goal of maintaining global temperature increases well below 2 degrees Celsius, ideally striving for 1.5 degrees C.
Whereas clauseIn 2018, the Intergovernmental Panel on Climate Change advised that net carbon emissions must fall 45 percent by 2030 and reach net zero by 2050 to limit warming below 1.5 degrees C thereby preventing the worst consequences of climate change.
The Fourth National Climate Assessment (2018) reports that with continued growth in emissions, annual U.S. economic losses could reach "hundreds of billions of dollars by 2100."
A warming climate is associated with systemic portfolio risks to investors, including supply chain dislocations, reduced resource availability, lost productivity, commodity price volatility, infrastructure damage, and disruptions from severe weather events, among others.
While Danaher has adopted various ad hoc initiatives to reduce emissions, and in 2020 adopted an overall goal to reduce its greenhouse gas emissions by 15% by 2024, it does not have a company-wide low-carbon transition plan or use climate-related scenario analysis to inform its business strategy.
Ramping up the scale, pace, and rigor of its climate-related initiatives may unlock opportunities for growth as customers increasingly demand environmental accountability from suppliers. It may also help prepare the Company for future climate-related regulations.
Electronics and device manufacturers like Schneider Electric and Shimadzu are among the over 1000 companies which have committed to science-based targets to reduce their emissions in line with the aims of the 2015 Paris Climate Agreement. Others like Siemens and Boston Scientific have pledged carbon neutral operations by 2030.
Given the impact of climate change on the economy, the environment, and human systems, and the short amount of time in which to address it, proponents believe Danaher has a clear responsibility to its investors and other stakeholders to account for whether, and how, it plans to reduce its ongoing climate contributions across its value chain.
Supporting statementIn the report shareholders seek information, among other issues at board and management discretion, on the relative benefits and drawbacks of integrating the following actions: Developing a low-carbon transition plan; Adopting short- and long-term greenhouse gas emissions reduction targets for the Company's full carbon footprint - both operations and value chain - that are aligned with the Paris Agreement; Increasing the scale, pace, and rigor of existing initiatives aimed at reducing the carbon intensity of Danaher products and operations; Adopting renewable energy, energy efficiency, and electric vehicles targets; or
Engaging with affected stakeholders including employees, their representatives, and communities impacted by the Company's transition plan, if applicable.