Garmin Ltd. Sustainability Report 2012
|Subject(s)||Supply Chain; Sustainability Reporting|
|Resolved Clause Summary||Sustainability report including supply chain|
|Status||Withdrawn; Company will address|
WHEREAS: Investors increasingly seek disclosure of companies’ social and environmental practices in the belief that they impact shareholder value. Many investors believe companies that are good employers, environmental stewards, and corporate citizens, are more likely to generate stronger financial returns, better respond to emerging issues, and enjoy long-term business success.
Mainstream financial companies are continuing to recognize the links between environmental, social and governance (“ESG”) performance and shareholder value. Also, investment firms like Goldman Sachs, Black Rock and Deutsche Asset Management are increasingly incorporating corporate social and environmental practices into their investment decisions.
As such, the availability of ESG performance data is growing through a wide range of data providers, such as Bloomberg. Furthermore, the United Nations’ Principles for Responsible Investment, a set of guidelines that can be adopted by institutional investors addressing ESG issues, has approximately 920 signatories representing $30 trillion assets under management as of July 2011.
There has been an increase in corporate management of ESG issues and corporate sustainability reporting. According to a 2011 survey, 95% of the Global Fortune 250 companies now release corporate responsibility data, which is an increase of 11% since 2008 (KPMG International Survey of Corporate Responsibility Reporting 2011).
Electronic companies have significant sustainability impacts related to supply-chain management and environment. For example, an increasing number of electronics companies have growing human rights and reputational risks due to their sourcing of tin, tantalum, tungsten and gold (“Conflict Minerals”) from the Democratic Republic of Congo. Responsible supply chain risk management is essential to investors and consumers alike in order to ensure the integrity of a c0mpany’s operations and reputation in an era of heightened global exposure and regulatory expectations around these issues. Our Company does not provide sustainability reporting or any evidence indicating management of its sustainability impacts.
Sustainability disclosure also helps investors understand how the company is addressing reputational risks, such as labor problems in the supply chain, or emerging regulatory risks, both of which can have a damaging impact on the brand value of a company.
Managing these sustainability opportunities and risks is increasingly becoming a competitive advantage.
RESOLVED: Shareholders request that the Board of Directors prepare a sustainability report describing corporate policies on environmental management and addressing supply-chain risks, specifically vendor standards and mechanisms for vendor compliance. The report, prepared at reasonable cost and omitting proprietary information, should be published by October 2012.
SUPPORTING STATEMENT: The report should include the company's definition of sustainability and a company-wide review of company policies, practices, and metrics related to long-term social and environmental sustainability.
We recommend that Garmin use the Global Reporting Initiative’s Sustainability Reporting Guidelines to prepare the report. The Global Reporting Initiative (www.globaIreporting.org) is an international organization developed with
representatives from the business, environmental, human rights, and labor communities.