Macerich Sustainability Report GHG 2011
|Filer||Amalgamated Bank LongView Funds|
|Resolved Clause Summary||Sustainability report including greenhouse gas strategies|
|Status||Withdrawn; Company will address|
RESOLVED: The shareholders of The Macerich Company (“Macerich” or the “Company”) request that the Board of Directors prepare a sustainability report describing corporate strategies to reduce greenhouse gas emissions and addressing other environmental, social and economic impacts of the Company’s operations. The report, prepared at reasonable cost and omitting proprietary information, should be published by December 2011.
As long-term shareholders, we believe that companies that effectively address environmental and social issues in their industry are likely to enjoy long-term economic success. As investors, we favor disclosure of companies’ practices to address and mitigate such environmental and social risks, and we believe Macerich should issue a report describing its activities and strategies in this area.
Globally over 2,600 companies issued reports on sustainability issues in 2007 (www.corporateregister.com). A 2008 survey found that 80% of the Global Fortune 250 companies now release corporate responsibility data, which is up from 64% in 2005 (KPMG International Survey of Corporate Responsibility Reporting). Leading REITs such as Prologis, AMB Property Trust, and CB Richard Ellis, already produce sustainability reports.
We believe that sustainability issues are particularly important for Macerich. A 2010 Department of Energy report states that U.S. buildings consume 39% of all energy use and 38% of carbon emissions, making them the largest single source of emissions. U.S. buildings also account for 74% of electricity used in the U.S. annually, and much of that power is generated in plants dependent on fossil fuels.
Research indicates that more energy efficient buildings, such as LEED-certified 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%.
The report we recommend here 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 Macerich consider using the Global Reporting Initiative’s Sustainability Reporting Guidelines (“the Guidelines”) to prepare the report, as appropriate. The Global Reporting Initiative (www.globalreporting.org) is an international organization developed with representatives from the business, environmental, human rights and labor communities. The Guidelines provide guidance on report content, including performance on direct economic impacts, environmental, labor practices and decent work conditions, human rights, society, and product responsibility. The Guidelines provide a flexible reporting system that allows the omission of content that is not relevant to company operations.
We urge you to vote FOR this proposal.