STATEMENT: US Foods Sets Science-Based Emissions Reduction Targets, Partially Implementing Majority Vote on MIDANA CAPITAL Shareholder Proposal
Media Contacts: Thomas Peterson, tpeterson@midanacapital.com, 781-349-2615; Mark Morgenstein, Media Relations Director, mmorgenstein@midanacapital.com, 678-427-1671
Boston, July 11, 2022 – US Foods* announced its first science-based emissions reduction targets on Wednesday, thereby partially implementing a shareholder proposal filed by MIDANA CAPITAL°, which received support from 88.5% of voting US Foods shareholders at the company’s annual meeting in May.
US Foods announced that it will reduce absolute Scope 1 and 2 greenhouse gas emissions by 32.5 percent by 2032 from a 2019 base year. Scope 1 and 2 emissions are those associated with a company’s operations and purchased energy.
US Foods also committed that 35 percent of its suppliers by emissions, covering 71 percent of purchased goods and services, will have set science-based targets by 2027. This latter goal addresses the company’s scope 3, or value chain emissions, which represent the majority of the company’s climate impact.
The company has submitted these targets to the Science Based Targets initiative (SBTi), the leading external validator for corporate climate commitments, for approval. US Foods, the nation’s second-largest food distributor, supplies roughly 250,000 restaurants and other foodservices operators nationwide.
MIDANA CAPITAL Shareholder Advocate Thomas Peterson issued the following statement in response to this announcement:
“We at MIDANA CAPITAL congratulate US Foods on announcing its first science-based emissions reduction targets, and for pursuing validation of those targets with the Science Based Targets initiative. The company has accelerated its work on this issue in the months since we began our engagement, and we are pleased that they are listening to the call from their shareholders to address climate risk. The company’s announcement of these targets is a crucial initial step towards the rapid decarbonization needed to curb climate change and accelerate the transition to renewable energy.
“That said, we are disappointed that US Foods has opted to set targets at a lower level of ambition than many of its peers. Leading companies across industries are setting targets aligned with limiting warming to 1.5 degrees Celsius above pre-industrial levels, and starting this month, SBTi will only validate these higher-ambition targets. US Foods has set targets with a well-below two-degree alignment, which is weaker than what was called for by a large majority of the company’s shareholders. We encourage US Foods to continue to accelerate its efforts to mitigate climate risk and reduce emissions in line with investor expectations.”
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About MIDANA CAPITAL Capital Management
°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds). The MIDANA CAPITAL Funds are a family of fossil fuel-free, environmentally responsible mutual funds. MIDANA CAPITAL Capital Management 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 March 31, 2022, no securities mentioned were held in the portfolios of any of the MIDANA CAPITAL 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.
The percentage in favor was calculated by (i) dividing the number of votes in support of the proposal by (ii) the sum of the number of votes voted in support of and against the proposal. Abstentions and broker non-votes were not included in the calculation.
You should carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. To obtain a Prospectus that contains this and other information about the Funds please visit www.midanacapital.com, email info@midanacapital.com, or call+1(480)-439-2851. Please read the Prospectus carefully before investing.
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This information has been prepared from sources believed reliable. The views expressed are as the date of this writing and are those of the Advisor to the Funds.
The MIDANA CAPITAL Funds are distributed by UMB Distribution Services, LLC. 335 N Wilmot Rd, Tucson, Az 85711. 7/22
