Loss and Damage Fund for Climate Harms

Resolution Text

WHEREAS United Airlines has committed to being a leader in countering the climate crisis, by joining the First Movers Coalition, through which United is a major force in creating a market for the development of sustainable aviation fuel.

WHEREAS United Airlines demonstrated this leadership in 2021 by organizing the world’s first passenger flight in which one engine was powered by 100% sustainable aviation fuel.

WHEREAS, even with United Airlines’ leadership, the aviation industry remains one of the world’s largest carbon-emitters and United continues to contribute to the significant harms caused by climate change.

At COP 27, a group of 134 African, Asian and Latin American states and small island nations won global agreement to set up a Loss and Damage Fund to pay to repair devastated property, move threatened communities or preserve cultural heritage before it vanishes.1 These Global South states are the most impacted and yet least responsible for the growing climate related harms.

Operationalizing the fund will begin at COP28 and this step presents an opportunity for our company to take the lead in the Aviation industry’s participation in the fund and in planning for the likely impacts of regulations or fees related to such a fund on United. A recent United Nation’s report details the economic challenges presented by climate change and notes2

Since the financial needs for addressing loss and damage are likely to grow significantly in the future, exploring innovative sources of finance (such as marine shipping levies, aviation levies, taxation, debt relief, debt swaps and special drawing rights) besides grants, insurance and concessional loans will be essential to reach the necessary scale.

Timely analysis and planning for such requirements would enable United to gain the respect and reputational advantage of leading the response to increasing climate change and to prepare in advance for the potential costs and revenue implications of these developments.

RESOLVED shareholders request that United Airlines issue a report within 12 months of the AGM assessing whether there may be material impacts on the company’s finances or operations from any aviation fees related to the global Loss and Damages Fund, in consideration of the Company’s potential proportional share of aviation related impacts on developing nations and any company plans for participation in related mitigation and remediation efforts as well as the ongoing process for determining contributions by other parties to the Loss and Damages Fund. The report should be produced at reasonable cost and exclude proprietary or privileged information.

1 https://www.reuters.com/sustainability/cop/tensions-soar-over-new-fund-climate-loss-damage-ahead-cop28-2023-10-23/ 

2 https://wedocs.unep.org/bitstream/handle/20.500.11822/43865/AGR23_ESEN.pdf?sequence=8