In a recent development, Boeing’s board of directors recommended shareholders vote against a proposal which sought an independent review of the company’s business activities and expenditures in China to determine their alignment with the company’s stated ESG commitments.
The Boeing annual meeting of shareholders is scheduled to take place today and the shareholder proposal regarding Boeing’s operations in China is listed as item 4 on the agenda.
The proposal, which was submitted by the National Legal and Policy Centre (NLPC). NLPC, which holds 38 shares of Boeing common stock, emphasised the need for transparency and accountability, urging the company’s board of directors to commission and publish a third-party review within the next year about its China operations.
What the shareholder proposal says
The proposal highlighted several concerns. It said that Boeing pledged to reduce greenhouse gas emissions and achieve 100 per cent renewable electricity by 2030. It also claimed to uphold human rights throughout its operations. However, the proposal argued that Boeing’s close ties with China contradict its ESG (Environmental, social and governance) commitments, given China’s significant greenhouse gas emissions and poor human rights record.
“The Boeing company touts the virtues of its ESG initiatives, such as its commitment to reduce operational greenhouse gas emissions 55 per cent by 2030 below 2017’s, and to achieve 100 per cent renewable electricity by the end of the decade, as part of commercial aviation’s goal of “net zero” greenhouse gas emissions by 2050. The company also insists human rights are protected throughout its operations, as outlined in its ‘Basic Working Conditions and Human Rights in Boeing’s Supply Chain’. But the company’s environmental promises and human rights commitments are belied by its cosy relationship with China, a country that is controlled by the dictatorial and inhumane Chinese Communist Party,” the proposal read.
