Saia Inc: Adopt Emission Reduction Targets and Comprehensive Plan

WHEREAS: The Intergovernmental Panel on Climate Change reports that immediate emission reductions are required to limit global warming to 1.5°C. Investor demand for science-aligned emission reduction strategies underscores the reality that companies and investors are increasingly exposed to severe physical, transition, and systemic climate risks.

Saia Inc, a leading less-than-truckload (LTL) carrier with 5,800 heavy-duty vehicles across 45 states, faces customer demand for decarbonized supply chains and increasing climate regulations. While it discloses Scope 1 emissions and has begun using alternative vehicles and renewable fuels, these initiatives cover less than 1% of its fleet. Saia optimizes load scheduling but trails competitors in customer-specific emissions tracking and advanced decarbonization options.[1] By committing to emission reduction targets and creating a systematic, forward-looking plan, Saia can enhance its competitiveness in a carbon-constrained economy.

Saia operates a large fleet of Class 8 vehicles. Battery electric Class 8 vehicles are projected to reach cost parity with diesel models before 2030 due to higher energy efficiency and lower operating costs. Clean vehicle tax credits are expected to accelerate this transition, and major manufacturers like Daimler, Volvo, and Navistar have pledged to sell only zero-emission trucks by 2040.[2] Saia’s approach to leveraging these developments remains unclear, potentially affecting its profitability and competitiveness.

Transportation, responsible for 28% of U.S. energy consumption, faces increasing climate protective regulations. [3] A consortium of 17 states in key operating corridors have set targets to achieve 100% zero-emission truck sales by 2050.[4] California’s Advanced Clean Fleets rule requires commercial fleets to phase out non-zero emission vehicles starting in 2027.[5] Per Saia’s 2023 10-K, such actions could “further increase our costs and impact our operations.”[6]

Competitors in the LTL space including Knight-Swift Transportation, Werner Enterprises DHL Group, and FedEx Corp.[7] have emission reduction targets. DHL and FedEx also provide advanced services to support customer decarbonization. These services are critical as a growing number of companies set targets to reduce their value chain emissions.[8]

By committing to emission reduction targets and creating a climate transition plan, Saia can address customer, regulatory, and competitive pressures and position itself to benefit from the evolving low-carbon economy.

BE IT RESOLVED: Shareholders request the Board disclose how Saia intends to reduce its Scope 1 and 2 greenhouse gas emissions in alignment with interim and long-term climate targets aligned with the Paris Agreement.

SUPPORTING STATEMENT: Proponents suggest, at management discretion, the Company disclose: