Old Dominion Shareholders Call on Company to Adopt Basic Climate Targets and Prepare for a Clean Energy Future
Proposal offers opportunity for innovative, clean technologies to strengthen company’s competitive edge
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Sophia Wilson, [email protected], (341) 600-1832
BERKELEY, CALIFORNIA—MAY 15, 2024— Today, Old Dominion Freight Line Inc., one of the largest North American trucking companies operating in 48 states, faces a shareholder vote on an Amalgamated Bank and As You Sow proposal calling for Old Dominion to adopt interim and long-term greenhouse gas reduction (GHG) targets to reach Net Zero emissions by 2050. The transportation sector plays a pivotal role in reaching the Paris Agreement’s goal as it is the highest emitting sector in the United States, with 24% of these emissions from ground freight transportation.
With Old Dominion’s lack of targets and its fleet of more than 11,000 diesel-powered semi-trailer trucks, shareholders are concerned about its ability to reduce carbon emissions and air pollution while remaining competitive in a net zero economy.
“Old Dominion and other trucking companies are a critical component in the global drive to reduce fossil fuel use and climate risk. By setting emission reduction targets and creating a climate transition plan, Old Dominion can ensure that they are prepared for, better equipped to manage this transition, and meet customer demand for cleaner, more innovative transportation,” said Ivan Frishberg, Chief Sustainability Officer at Amalgamated Bank.
Emerging regulations in California and 11 other states (CO, MA, MD, ME, NJ, NM, NY, OR, RI, VA, and WA) create an urgent need for Old Dominion to act. Under the Advanced Clean Trucks rule, manufacturers are required to sell 100% zero-emissions heavy-duty vehicles (ZE-HDVs) by 2035. In March of 2024, the Biden Administration released the National Zero Emission Freight Corridor Strategy to accelerate zero-emission infrastructure deployment for freight trucks.
Diesel-powered trucks have long been a concern for air quality advocates at the state and federal levels and responsible investors. “Lowering carbon emissions and addressing air pollution go hand-in-hand. This proposal encourages Old Dominion to address multiple climate and environmental risks by investing in cleaner, more efficient technology," said Mary Beth Gallagher, Director of Engagement at Domini Impact Investments.
Old Dominion is falling behind direct competitors and other U.S. transport companies. For example, FedEx has set a Net Zero by 2040 target and invested significant capital into developing electric truck infrastructure.
“Investors expect, at a minimum, best practice when it comes to climate risk management, and Old Dominion’s current efforts fall short,” said Danielle Fugere, President and Chief Counsel of As You Sow. “This shareholder proposal sends a strong message to the Company that it must accelerate its efforts to align with a net zero economy.”
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As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.
Amalgamated Bank is a New York-based full-service commercial bank and a chartered trust company with a combined network of five branches across New York City, Washington D.C., and San Francisco, and a commercial office in Boston. Amalgamated Bank was formed in 1923 as Amalgamated Bank of New York by the Amalgamated Clothing Workers of America, one of the country's oldest labor unions. Amalgamated Bank provides commercial banking and trust services nationally and offers a full range of products and services to both commercial and retail customers. Amalgamated Bank is a proud member of the Global Alliance for Banking on Values and is a certified B Corporation®. Amalgamated Bank engages with portfolio companies held by the Longview family of funds managed by the Bank.