Four institutional investors—Cardano, Ethos Foundation, PGGM, and Greater Manchester Pension Fund, who between them hold $360 billion of assets under management—have joined ShareAction in filing the resolution.
If passed, the Norwegian fertiliser company Yara would have to set comprehensive science-based emissions reduction targets across its entire value chain ahead of its 2025 AGM.
Commenting on the resolution, Penny Fowler, Head of Corporate Climate Campaigns at ShareAction, said:
“Fertiliser production and use accounts for no less than 5% of global GHG emissions. Yara is Europe's biggest fertiliser company, with a carbon footprint of 62.8 million tonnes, equivalent to the annual emissions of 16.1 coal-fired power plants. That simply isn’t sustainable for people or the planet. We would like to see Yara act as a world leader in the sector by committing to set comprehensive scope 3 targets within the next year but so far it has not agreed to this.
“The climate crisis our planet is facing means we have to take action. If Yara is unwilling to do so, then it falls to responsible shareholders to take the lead.”
Since 2021 ShareAction and its coalition of investors working on chemicals decarbonisation have been engaging with Yara to bring about change in the company's emissions reduction strategy. During that time investors have repeatedly called on the company to set comprehensive, science-based scope 3 emissions reduction targets, that would cover the whole of Yara’s value chain, including upstream emissions from fossil-based raw materials.
Some of Yara’s European peers, including BASF, the world’s largest chemical company and another major fertiliser producer, have already released targets covering upstream emissions.
Commenting on the reasons behind their support for the resolution, Mariet Druif, Responsible Investment Officer at Cardano said:
“The climate impacts of companies like Yara International go far beyond its own production and energy use; they encompass the entire lifecycle of its products. Yara’s scope 3 footprint constitutes around 75 per cent of its total emissions and the company should take responsibility for the full climate impact of its products.”
Co-filing investors are also keen to stress their expectations that Yara International sets credible science-based emissions reduction targets as soon as possible.
Vincent Kaufmann, CEO at Ethos Foundation, a co-filer of the resolution said:
“Verifiable science-based targets and solutions are critical for investors who require a robust, credible framework to assess investee companies’ climate performance and the associated risks and opportunities.”
ENDS
Notes to Editors
For more information or to request interviews, please contact the ShareAction press office at press@shareaction.org or +447711156881.
ShareAction’s chemicals campaign uses the power of investors to encourage the decarbonisation of Europe’s largest chemicals companies. By providing expert research and co-ordinating investor action we push chemicals companies to reduce their emissions, which they can do by electrifying their production processes, using renewable energy and switching to non-fossil fuel feedstocks.
ShareAction is an NGO working to shape a world where the financial system serves our planet and its people. We mobilise global investors to use their influence to drive up labour standards, tackle climate change, protect the natural world, and improve people’s health. We push policymakers to ensure the financial system is working in the best interests of society. We work with people to create a movement for change. Visit shareaction.org or follow us @ShareAction to find out more.
Yara International is a member of the expert advisory group of the Science Based Targets Initiative (SBTi) developing the guidance on decarbonisation pathways for the chemicals sector, which will be published later this year.
The investors briefing on why shareholders should support the 2024 resolution on scope 3 emission at Yara International is available here.
