Climate Transition Plan and GHG Reduction Goals

Resolution Text

WHEREAS: To limit global warming to 1.5 degrees Celsius, the Intergovernmental Panel on Climate Change has advised that greenhouse gas emissions must be halved by 2030 and reach net zero by 2050. Every incremental increase in

temperature above 1.5 degrees will increase physical, transition, and systemic risks for companies and investors alike. Up to 10 percent of global economic value could be lost by 2050.1

Broadcom recognizes that active environmental management makes Broadcom “more resilient to climate change while allowing [the Company] to increase operational performance and reduce costs.”2 Yet, Broadcom lacks long-term targets in line with Science-Based-Targets-initiative (SBTi) methodologies and fails to comprehensively inventory and set scope 3 emission-reduction targets. To date, Broadcom only aims to reduce Scope 1 and 2 greenhouse gas emissions 38 percent by 2030. It also lacks a climate transition plan.

The Semiconductor Climate Consortium urges companies to set net-zero-emission targets and transparently report progress.3 Broadcom’s customers Apple and Cisco have set net-zero-emission-reduction targets and will consider

suppliers’ own net-zero goals as they work to eliminate upstream emissions. Peers Qualcomm and Analog Devices have set ambitious and transparent science-based targets. Both companies have Scope 1, 2, and 3 SBTi-approved targets that are 1.5 degrees Celsius aligned for FY2030 and net zero commitments by 2050.

Investors seek disclosure on how companies are addressing climate risks and opportunities through emissions-reduction targets and climate-transition plans. Such plans should detail near-term quantitative actions to achieve medium- and long-term goals.

Investors believe Broadcom must take additional action to comprehensively address its climate impact and mitigate risks, including adopting 1.5-degrees-Celsius-aligned science-based targets for its full carbon footprint and developing a climate-transition plan.

RESOLVED: Shareholders request that Broadcom issue near- and long-term science-based-greenhouse-gas-reduction targets aligned with the Paris Agreement’s ambition of limiting global temperature rise to 1.5 degrees Celsius and summarize plans to achieve them. The targets and plan should cover the Company’s full range of operational and supply chain emissions.

SUPPORTING STATEMENT: In assessing targets, shareholders recommend,

· Taking into consideration approaches used by advisory groups like the Science-Based-Targets initiative;

· Developing a transition plan that outlines how the Company plans to achieve its goals, taking into consideration criteria used by advisory groups like the Task Force for Climate-Related Financial Disclosures, CDP, and Transition Plan Taskforce;

· Consideration of setting targets for renewable energy, supply chain engagement, and other measures deemed appropriate by management.

1 https://www.swissre.com/institute/research/topics-and-risk-dialogues/climate-and-naturalcatastrophe-risk/expertise-publication-economics-of-climate-change.html 

2 https://docs.broadcom.com/doc/environment-social-governance-report 

3 https://semi.org/en/industry-groups/semiconductor-climate-consortium