Capital One Financial Sustainability Report Inc. Financed Emissions
|Company||Capital One Financial Corp.|
|Filer||Calvert Asset Management Company, Inc.|
|Subject(s)||Greenhouse Gas Emissions; Sustainability Reporting|
|Resolved Clause Summary||Issue a sustainability report including financed GHG emissions goals|
|Status||Withdrawn; Company will address|
WHEREAS: Managing and reporting environmental, social and governance (ESG) business practices help companies compete in a global business environment characterized by finite natural resources, changing legislation, and heightened public expectations. Reporting allows companies to publicize and gain strategic value from existing sustainability efforts and identify emerging risks and opportunities. ESG issues can pose significant risks to business, and without proper disclosure, stakeholders and analysts cannot ascertain whether the company is managing its ESG exposure.
The link between strong sustainability management and value creation is evident. A 2012 Deutsche Bank review of 100 academic studies, 56 research papers, two literature reviews, and four meta-studies on sustainable investing found 89% of studies demonstrated that companies with high ESG ratings also show market-based outperformance, and 85% of the studies indicated that these companies experience accounting-based outperformance. Also, according to a 2011 KPMG report, 80% of Fortune Global 250 companies produce sustainability reports
Furthermore, more than 1,200 institutional investors managing over $33 trillion have joined The Principles for Responsible Investment, and publicly commit to seek comprehensive corporate ESG disclosure and incorporate it into investment decisions.
Moreover, analysis by McKinsey & Co. and Deloitte Consulting done in 2013 found that U.S. companies could reduce emissions 3% annually between now and 2020, and realize savings up to $780 billion.
Finally, PricewaterhouseCoopers recently stated in Low Carbon Economy Index 2013: Busting the carbon budget, that: “Based on current economic projections, the global economy would need to decarbonize by 6% a year, every year to 2100, to stay within a 2°C global carbon budget. . . . On current trends we will use up this century’s carbon budget by 2034.”
RESOLVED: The Board of Directors shall issue an annual sustainability report describing Capital One Financial Corporation’s short- and long-term responses to ESG-related issues. The report should include objective comprehensive quantitative indicators, goals, and targets relating to each issue where feasible, be prepared at a reasonable cost, omit proprietary information, and be made available to shareholders by September 30, 2014.
SUPPORTING STATEMENT: The report should address relevant policies, practices, metrics, targets, and goals on topics such as: greenhouse gas emissions, comprehensive financed emissions reduction targets, water management, waste minimization, energy efficiency, and other relevant environmental and social impacts. The report should also include a plan for our company to help mitigate its business risk from climate change by adopting policies to help mitigate climate change by encouraging (where feasible) reduced greenhouse gas emissions by our customers and our company.
We recommend Capital One Financial Corporation consider using the Global Reporting Initiative's (GRI) Sustainability Reporting Guidelines to prepare the report. The GRI is an international organization developed with representatives from business, environmental, human rights and labor communities. The Guidelines cover environmental impacts, labor practices, human rights, product responsibility, and community impacts. The Guidelines provide a flexible reporting system which allows the omission of content irrelevant to company operations.