CarMax* to expand carbon offsets disclosure in response to Green Century Funds’ shareholder proposal
Andrea Ranger, Shareholder Advocate, firstname.lastname@example.org, 781-349-2813
Pam Podger, Communications Director, email@example.com, 860-822-3887
Boston, March 28, 2023 — CarMax, Inc., the largest used vehicle retailer in the U.S., has committed to strengthening its carbon offsets disclosure so that shareholders can assess whether the company is on track to achieve its emissions reduction targets. In response, Green Century Funds, with lead-filer As You Sow, withdrew a shareholder proposal for CarMax’s 2023 annual meeting.
In exchange for the withdrawal, CarMax agreed to several steps. It will publicly disclose any carbon offsets and renewable energy credits (RECs) it’s using to meet its goal of 50% reductions in its Scope 1 and Scope 2 GHG emissions by 2025. It will also share its criteria for procuring high-quality carbon offsets. Additionally, the company will disclose details of any projects involving carbon offsets and RECs purchased, including the project names, locations, and third-party verification of the projects’ authenticity.
Andrea Ranger, shareholder advocate at Green Century°, said, “It is critical that companies making net-zero or greenhouse gas emissions reduction targets have a viable pathway for achieving those goals. We believe that carbon offsets should only be used to address hard-to-abate emissions and that companies should primarily focus on reductions to achieve their emissions reduction goals.”
The Science Based Targets initiative (SBTi) has said that on average companies should reduce 90% of their emissions by 2050. Shareholders are becoming concerned that companies are relying on carbon offsets to meet their near-term greenhouse gas reduction targets. Therefore, Green Century Funds wants to clarify why CarMax is purchasing carbon offsets and whether the company is on track to make SBTi’s recommended 90% emissions cuts by 2050.
Leslie Samuelrich, President of Green Century Funds, added, “We applaud CarMax’s commitment to disclosing its carbon offsets and see it as an important step toward greater transparency. Investors need this clarity to understand companies’ climate risk and how they are addressing it. We have little time to waste to prevent catastrophic global warming.”
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°Green Century Capital Management, Inc. (Green Century) is the investment advisor to the Green Century Funds (The Funds). The Green Century Funds are one of the first families of fossil fuel-free, environmentally responsible mutual funds. Green Century hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of December 31, 2022, CarMax, Inc. comprised 0.00%, 0.06%, and 0.00% of Green Century Balanced Fund, the Green Century Equity Fund, and the Green Century International Index Fund respectively. As of the same date, other securities mentioned were not held in the portfolios of any of the Green Century Funds. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
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