Boston, May 2, 2025 – A Green Century° shareholder proposal urging The Timken Company* to adopt science-based targets to reduce its climate emissions received 8.91% of votes cast at the company’s annual meeting on Friday. The Ohio-based steel bearing manufacturer is a key supplier for the global automotive, rail, renewable energy and agricultural industries.
“Timken needs to meaningfully address its negative impact on climate change, not just trim emissions from a small portion of its business,” said Leslie Samuelrich, president of Green Century Funds. “Addressing climate emissions from its supply chain will help Timken meet the expectations of its customers and investors to mitigate climate-related risks.”
Like many companies with global operations, Timken’s supply chain may be increasingly vulnerable to the impacts of climate change. The frequency of billion-dollar weather events has increased from once every four months to once every three weeks in just a decade. These floods, hurricanes, droughts and other severe weather disrupt the manufacturing and transport activities that companies, including Timken, depend on to maintain profitability.
Green Century secured an agreement with Timken in 2021 that led to the company adopting its targets to cut climate emissions from its direct operations by 50% by 2030. Despite making significant progress toward that goal, Timken hasn’t updated those targets to encompass its full value chain, which represents the vast majority of its emissions.
Timken plays a critical role in the transition to renewable energy
Timken is a major supplier for industries that are critical to reducing climate emissions. The solar and wind industries contributed more than 9% of its sales revenue in 2023, and its customers include companies such as BMW, Ford, and Mercedes, which have committed to major climate action. As these customers seek to increase the sustainability of their supply chains, they will increasingly rely on suppliers reducing their own emissions.
Nevertheless, Timken continues to be out of step with its peers and customers by failing to set science-based targets that would address its largest emissions sources, which may expose the company to not only the climate and transition risks of increasing emissions but also the competitive and reputational risks of remaining a laggard.
“Timken could bolster its image and position in the industry by committing to science-based climate targets across its full value chain,” said Green Century shareholder advocate Giovanna Eichner. “Passing up the opportunity to become a leader in the renewable energy transition may heighten risks for Timken’s business and investors.”
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About Green Century Funds
°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 3.28.25, Timken Co. comprised 0.00%, 0.02%, 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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