Climate Transition Plan and GHG Reduction Goals

Resolution Text

WHEREAS: To limit the most severe impacts of climate change, the Intergovernmental Panel on Climate Change (IPCC) has advised that greenhouse gas (GHG) emissions must be halved by 2030 and reach net zero by 2050 to limit global temperature rise to 1.5°C[1]. For the agricultural sector, the IPCC assessed with statistically high confidence that many regions will experience reduced crop yields due to extreme weather change[2]. Inaction will result in increasingly severe physical, transition, and systemic risks for companies and investors.

Ingredion Incorporated (“Ingredion” or “the Company”) is a leading ingredients manufacturer. The company relies heavily on raw materials such as corn, specialty grains, rice, stevia, peas and sugar. In its latest 10-K, Ingredion recognizes that climate change could negatively affect agricultural productivity, increase volatility in commodity prices, and disrupt critical functions along its supply chain. 

While Ingredion has set GHG reduction targets that are aligned with a well-below 2-degree scenario, investors seek increased disclosure on how the company can address its climate risks and opportunities to reduce its scope 3 emissions, which comprise more than 75% of the company’s total emissions. Specifically, investors seek a climate transition plan detailing the forward-looking, near-term, and quantitative actions the company will take to achieve its medium-and long-term sustainability goals. 

While investors commend Ingredion’s efforts in piloting regenerative agriculture programs and commitment to sustainably source 100% of its Tier 1 Priority Crops by 2025, it remains unclear whether these projects can yield the emissions reduction necessary to achieve stated targets. Moreover, the Company has stated that it has not estimated the capital investments required to achieve net zero goals.

Ingredion must take additional action to comprehensively address its climate impact and mitigate both the physical risks to its operations and the transition risks associated with new regulation and a global shift to a lower-emissions economy. Investors believe adopting 1.5°C-aligned science-based targets for its full carbon footprint and developing a climate transition plan will help the Company mitigate these risks.

RESOLVED: Shareholders request Ingredion issue a climate transition action plan, above and beyond existing disclosure, describing how it intends to align its operations and full value chain emissions with the ambition of limiting global temperature increase to 1.5ºC. The plan should be published at reasonable expense, exclude confidential information, and detail progress and any plan updates on an annual basis. 

SUPPORTING STATEMENT: In developing and implementing the plan, we recommend, at management’s discretion: 

Considering guidance by advisory groups such as the Task Force for Climate-Related Financial Disclosures, CDP, Transition Plan Taskforce, Climate Action 100+, and We Mean Business Coalition;
Considering capital expenditures needed to support the Company’s regenerative agriculture and sustainable sourcing efforts in alignment with a 1.5ºC future; and
Quantification of the Company’s climate strategies to meet emissions targets

[1] https://www.ipcc.ch/assessment-report/ar6/

[2] https://www.ipcc.ch/srccl/