Proposal 4 – Shareholder Proposal Green Century Capital Management, Inc., on behalf of the Green Century Equity Fund, 114 State St., Suite 200, Boston, MA 02109, has submitted the following proposal. Green Century Equity Fund is the beneficial owner of at least $25,000 worth of shares of the Company’s common stock. The proponent is solely responsible for the contents of this proposal and its supporting statement.
If properly presented at the Annual Meeting by or on behalf of the proponent, the Board of Directors recommends a vote AGAINST this proposal.
Resolution Regarding Emissions Disclosures and Targets
Whereas: 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. Each 1 °C temperature rise will reduce global GDP by as much as 12% and entail increasingly severe physical, transition, and systemic risks for companies and investors alike.4
The Science Based Targets initiative (SBTi) advises the apparel and footwear industry to reduce emissions at least 4.2% per year to stay on a 1.5°C pathway.5 Yet, an analysis of the largest retailers reporting to the Carbon Disclosure Project (CDP) found that 63% will need to accelerate action to reach their 2030 goals.6 Without action, the industry’s emissions are expected to increase by nearly 30% by 2030.7
In its 10-K, Wolverine World Wide, Inc. (Wolverine) acknowledges that “severe weather due to climate change” may result in higher costs and “extreme weather conditions can... adversely impact the Company’s business, results of operations and financial position.” Furthermore, climate change will produce more intense and frequent weather-related events in Wolverine’s critical manufacturing countries, including Vietnam and China.8 By 2030, extreme weather will jeopardize nearly $65 billion worth of exports in the footwear and apparel industry.9
Although Wolverine’s 10-K claims that “sustainability is important to our customers and a competitive advantage for our business,” the Company has yet to disclose any GHG emissions data or set GHG emissions reduction targets. Without data regarding Wolverine’s GHG emissions and plans to reduce them, investors are left uncertain about the extent to which Wolverine is exposed to the climate risks outlined in its 10-K and if, or how, the Company intends to mitigate them.
Wolverine lags its peers in the footwear and apparel industry. Competitors Croes, Deckers Outdoor Corp., VF Corp., Puma, Under Armour, New Balance, Adidas, and Steve Madden Ltd. have all disclosed their full value chain emissions, among others. These companies are also among the 563 textiles, apparel, and footwear companies with SBTi verified emissions reduction targets or commitments to establish them.10 New Balance, Adidas, and Puma have also published detailed climate transition plans disclosing how they will achieve their GHG emissions reduction goals.
RESOLVED: Shareholders request that Wolverine disclose its current GHG emissions as well as short-, medium- and long-term targets for measurably reducing them—and that Wolverine report annually on its progress toward those targets.
SUPPORTING STATEMENT: Proponents recommend, at the board and management’s discretion, that the disclosures include:
• | The full range of Wolverine’s operational and supply chain emissions; |
• | A transition plan for achieving the Company’s goals; |
• | Consideration of frameworks, benchmarks and processes developed by credible third parties such as SBTi, IPCC, Transition Plan Taskforce, and Task Force for Climate-Related Financial Disclosures. |
