|What is the company doing to oversee climate risk, and what was the companyâ€™s response to similar proposals in prior years?|
|J.B. Hunt Transport Services||2020||US||2020 Stewardship Report||https://us.dimensional.com/about-us/investment-stewardship|
J.B. Hunt, a US-based transportation company, received a shareholder proposal requesting that it report on how it plans to reduce its contribution to climate change and align operations with the Paris Agreement. In its annual report, the portfolio company recognized climate change as a material risk. The company also stated it was exploring low carbon alternatives as part of its long-term goals. However, the company did not disclose any targets or provide any explanation of how it planned to measure its success in addressing climate change risk.
Dimensional discussed the shareholder proposal with the portfolio company and sought to better understand the companyâ€™s current disclosure of practices related to climate change risks and what the company was doing to oversee climate risk, as well as the companyâ€™s response to similar proposals in prior years.
Dimensional considered whether increased disclosure about oversight of material environmental risks may be beneficial to shareholders. We also considered the specifics of the shareholder proposal, which were general in nature and allowed company management some discretion in creating effective disclosure. Though the company identifies climate change as a material risk, our research and engagement indicated that the portfolio company lagged industry peers in environmental disclosure. In addition, we considered the portfolio companyâ€™s response to past shareholder proposals on similar topics.
- Shareholder Proposal
- Climate Change Report Shareholder
- Company lagged peers in environmental disclosure, proposal allowed management discretion in creating effective disclosure
Dimensional voted for the climate change report proposal. Ultimately, the proposal passed at the companyâ€™s annual meeting.