Yum! Brands Climate in Supply Chain 2011
|Company||Yum! Brands, Inc.|
|Filer||Calvert Asset Management Company, Inc.|
|Sector||Food and Beverage|
|Subject(s)||Climate Change; Supply Chain|
|Resolved Clause Summary||Climate risk in supply chain|
|Status||Withdrawn; Company will address|
WHEREAS, in 2007, the ïntergovernmental Panel on Climate Change’s (IPCC) Fourth Assessment Report states it is “very likely” that anthropogenic greenhouse gas emissions have heavily contributed to global warming. Furthermore, “Impacts of climate change will vary regionally but, aggregated and discounted to the present, they are very likely to impose net annual costs which will increase overtime as global temperatures increase.”
WHEREAS, in 2008, the United States Department of Agriculture (USDA) reported that, “No matter the region, weather and climate factors such as temperature, precipitation, CO2 concentrations, and water availability directly impact the health and wellbeing of plants, pasture, rangeland, and livestock.” Specifically, “Climate change affects average temperatures and temperature extremes; timing and geographical patterns of precipitation; snowmelt, runoff, evaporation, and soil n'1oisture; the frequency of disturbances, such as drought, insect and disease outbreaks, severe storms, and forest fires; atmospheric composition and air quality; and patterns of human settlement and land use change,” which directly impact crop yields and meat production.
WHEREAS, in 2008, Acclimatise, a risk management firm, reported that climate-related “impacts will be felt throughout a company’s business model, with consequences for its raw materials, supply chains, essential utilities, assets and operations, markets, customers and products, its workforce and the communities in which it is located.”
WHEREAS, increasingly investors believe that there is an intersection between climate change and corporate financial perforrnance. Goldman Sachs reported in May, 2009, “We find that while many companies acknowledge the challenges climate change presents there are significant differences in the extent to which companies are taking action. Differences in the effectiveness of response across industries create opportunities to lose or establish competitive advantage, which We believe will prove increasingly important to investment performance.”
WHEREAS, the Carbon Disclosure Project (CDP), representing 534 institutional investors with assets of more than $64 trillion under management, requested 4,700 corporations to discìose their climate-related risks in February, 2010. Currently Yum! Brands, inc. does not publicly respond to the CDP questionnaire.
WHEREAS, leading companies in the restaurant industry, such as Darden Restaurants and Starbucks Corporation, publicly report on their assessment and management of risks, including implications to their product supply chain, from climate change.
WHEREAS, information from corporations on their climate change risks and strategies is essential to investors as they assess the strengths of corporate securities in the context of climate change.
RESOLVED: Shareholders request that within 6 months ofthe 2011 annual meeting, the Board of Directors provide a report to shareholders, prepared at reasonable cost and omitting proprietary information, describing how Yum! Brands, Inc. will assess and « manage the impacts of climate change on the corporation, with specific regard to its operations and supply chain, and plans to disclose such information through public reportìrig mechanisms.