Electronic Arts Inc – Set Science Based Targets (2023)
Outcome: Withdrawn for agreement
Whereas: The Intergovernmental Panel on Climate Change has advised that greenhouse gas (GHG) emissions must be halved by 2030 and reach net zero by 2050 in order to limit global warming to 1.5°C and avoid the worst impacts of climate change. Every incremental increase in temperature above 1.5°C will entail increasingly severe physical, transition, and systemic risks for companies and investors alike.
In its 10-K, Electronic Arts (“the Company”) acknowledges that “climate-related events and their impact on critical infrastructure in areas in which we do business have the potential to disrupt our business and operations, and/or the businesses and operations of our partners.” Such events are expected to become more frequent and more severe as climate change worsens. Despite acknowledging these risks, Electronic Arts’ climate strategy does not align with our expectations. The Company does not disclose its material scope 3 emissions or have plans to set 1.5°C-aligned science-based targets.
By contrast, competitors like Ubisoft, Tencent, Sony, Microsoft, and Netflix have set, or committed to set, science-based GHG reduction targets through the Science Based Targets initiative (SBTi). SBTi-validated targets can give confidence that companies are addressing their material carbon footprint in line with limiting warming to 1.5°C.
Many investors increasingly seek disclosure of how companies are addressing climate risk and planning to transition their business models in line with limiting warming to 1.5°C. To assist companies in developing viable climate transition plans, groups including We Mean Business, Glasgow Financial Alliance for Net Zero, State Street Global Advisors, and the Task Force on Climate-Related Financial Disclosures have provided guidance.
We believe, Electronic Arts 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 clean energy economy. We believe adopting 1.5°C-aligned science-based targets for its full material carbon footprint will help the Company mitigate these risks.
Resolved: Shareholders request Electronic Arts issue near and long-term science-based GHG reduction targets aligned with the Paris Agreement’s ambition of limiting global temperature rise to 1.5°C and summarize plans to achieve them. The targets should cover the Company’s full range of operational and supply chain emissions.
Supporting Statement: In assessing targets, we recommend:
- Taking into consideration approaches used by advisory groups like SBTi;
- Developing a transition plan that shows how the Company plans to meet its goals, taking into consideration criteria used by advisory groups; and
- Consideration of supporting targets for renewable energy, energy efficiency, and other measures deemed appropriate by management.