RESOLVED:​ ​Shareholders request that Nucor Steel senior management, with oversight from the Board of Directors, issue a report on climate change mitigation strategies, assessing the feasibility of adopting quantitative, company-wide goals for increasing the company’s use of renewable energy and energy efficiency (clean energy),  and any other measures deemed prudent by company management to increase the pace and scope of the company’s efforts to reduce greenhouse gas (GHG) emissions and reduce climate change risks​ ​associated with the use of fossil fuel-based energy. The report should be issued by December 31, 2020 at reasonable cost and omit proprietary information.

Supporting Statement:​ By assessing the feasibility of setting goals to increase renewable energy usage, increase energy efficiency, and adopt other such measures the company deems feasible, our company could prepare to take ​practical steps to reduce our emissions of greenhouse gases that contribute to climate change.

The Intergovernmental Panel on Climate Change estimates that a 45% reduction in anthropogenic GHG emissions globally is needed (from 2010 levels) by 2030 to avoid the worst impacts of climate change (Global Warming of 1.5 degrees C, IPCC, Oct 2018).

By assessing the feasibility of setting public goals for increased use of clean energy and other GHG-reducing measures, Nucor could take a step towards aligning the company with global efforts to limit climate change, provide transparency to investors and other stakeholders, insulate the company from regulatory uncertainty, and contribute to climate solutions, producing reputational benefits.

Fortuitously, many major companies have found that GHG-reducing measures are not only impactful, but also practical, and cost-effective. As costs have fallen, renewable energy sources like wind and solar have become, in many markets, the least expensive source of electricity. According to the 2019 Sustainable Energy in America Factbook (Bloomberg) "at $27-61/MWh… onshore wind is cheaper than new gas-fired plants for bulk electricity generation in most areas of the U.S."  Lawrence Berkeley National Laboratory reported in 2018 that business customers paid just $28 per MWh saved for investments to improve energy efficiency, about one-quarter the average cost of grid electricity.

Nucor’s recent announcement that it will power the Sedalia mill in Missouri with low cost, carbon free wind power is an encouraging step. However, without goals it remains unclear whether this is a discrete action or part of a broader strategy.  Without further action, Nucor risks falling behind competitors in the race to decarbonize.  For instance, both ArcelorMittal and Alcoa have declared energy efficiency improvement goals; seven global steelmakers have signed renewable energy contracts;  ArcelorMittal has committed to reduce emissions in line with the Paris Agreement through the ResponsibleSteel initiative; and Hyundai, Mahindra Sanyo, SSAB, ThyssenKrupp, and US Steel have set GHG reduction targets that will drive clean energy sourcing.  

Accordingly, we urge Nucor to study the feasibility of adopting long-term clean energy goals so investors can assess the company’s readiness for a low carbon future.