AMB Property GHG Reduction Goals 2011
|Company||AMB Property Corporation|
|Filer||Amalgamated Bank LongView Funds|
|Subject(s)||Climate Change; Greenhouse Gas Emissions|
|Resolved Clause Summary||Greenhouse gas emissions reduction goals|
|Status||Withdrawn; Company will address|
RESOLVED: The shareholders of AMB Property Corporation (the “Company”) request that the board of directors adopt quantitative goals, based on available technologies, for reducing total greenhouse gas emissions from the Company’s properties and operations and report to shareholders by December 31, 2011 on its plans to achieve these goals. The report may omit proprietary information and be prepared at reasonable cost.
According to the Intergovernmental Panel on Climate Change (“IPCC”), the climate system is unequivocally warming, with human activity the main cause. Debate surrounding climate change now focuses not on whether a problem exists, but rather on the best means for abatement and adaptation.
The rise in average global temperatures resulting from climate change is expected to have significant adverse impacts. According to Business Week, many scientists agree that warmer temperatures resulting from climate change are causing more powerful storms and perhaps intensifying extreme weather events, including droughts and wildfires. Thermal expansion and melting ice sheets are expected to raise sea levels, with significant implications for coastal communities. Rising temperatures will also affect fresh water supplies. California’s Department of Water Resources, for instance, has stated: “Adapting California’s water management systems to climate change presents one of the most significant challenges for the 21 century.
Research indicates that more energy efficient buildings, such as LEED-certified or Energy Star-rated properties, generate higher income and income growth, lower capitalization rates, higher net operating income per square foot, higher market value, higher rent and lower expenses, compared to properties with no energy efficiency. A 2009 study by Profs. Fuerst and McAllister of Henley Business School indicated that LEED-certified and Energy Star buildings produce rental premiums of 4%-5% and sales price premiums of 25%-26%.
According to the Building Owners and Managers Association International, “[t]he commercial real estate industry spends approximately $24 billion annually on energy and contributes 18% of US carbon dioxide emissions.” With commercial end-use accounting for such a high proportion of greenhouse gas (“GHG”) emissions stemming from fossil fuel combustion, a number of recent studies have focused on energy efficiency improvements in commercial buildings as a potential source of emission reductions. A study in The McKinsey Quarterly, for example, found that nearly a quarter of cost-effective GHG abatement potential
involves efficiency-enhancing measures geared at reducing demand in the buildings and transportation sectors.
A number of companies in the commercial real estate sector are already working to address climate change. For example, CB Richard Ellis Group is working to address the issue and acknowledges that it is “uniquely positioned to help slow climate change by working with its clients to increase energy efficiency in the commercial properties it manages.”
AMB publishes a sustainability report that addresses energy efficiency. This disclosure is praiseworthy, but we believe that AMB should go one step further and disclose targets and goals for GHG reductions and AMB’s plans to achieve them.
We urge you to vote FOR this proposal.