|TransDigm Group Inc.||2020||N/A||https://www.blackrock.com/corporate/literature/press-release/blk-vote-bulletin-transdigm-jun-2020.pdf|
In our engagement with TransDigm on the issue of GHG emissions targets ahead of its 2019 AGM, the company stated that it would collect data that year to effectively establish a baseline to measure current emissions and set future reduction targets. With that understanding, we ultimately decided to vote against the shareholder proposal on GHG emissions. As of the end of 2019, the company had not provided disclosure on the risk oversight or strategy considerations for climate-related risk.
In its 2020 proxy statement, the company included language to stipulate that it is “considering whether sustainability and climate issues are likely to present any material risk and/or opportunity for the Company and, in conjunction therewith, the Board of Directors will consider the role of the Board in overseeing climate-related issues and the scope of that oversight.”2 The company said it will use 2021 as its baseline reporting year, and provided no further information on metrics or material focus areas. This response is, in our view, inadequate given the expectation set at the 2019 AGM and our assessment of the material impact (physical, structural and/or regulatory) that climate risk is likely to have on the company’s long-term strategy and ability to deliver sustainable shareholder returns.
- Election of Director
We were not satisfied with the company’s climate risk oversight and believe there has been insufficient progress with regards to climate-related reporting, despite laying out our clear expectations a year ago. Per our policy, BIS will hold members of the relevant committee, or the most senior non-executive director, accountable for inadequate disclosures and the business practices underlying them. As the company has no lead director or committee designated as responsible for climate risk, we are holding the Chairman (W. Nicholas Howley) to account by voting against his reelection. Howley was the CEO until 2018 and is the founder of the company.