Cintas Investors Reject Diversity Data, Climate Target Proposals

Shareholders at workplace uniform and supplies company Cintas Corp. on Tuesday rejected proposals calling for more information about the company’s diversity efforts and greenhouse gas reduction targets.

Most investors voted against the proposals at the Cincinnati-based company’s annual meeting held online.

One proposal, brought by environmental and social shareholder advocacy group As You Sow, asked Cintas to report on the effectiveness of the company’s diversity, equity and inclusion efforts. Cintas has not publicly released its consolidated EEO-1 form, an annual mandatory report filed with the Equal Employment Opportunity Commission showing the demographic breakdown of its workforce, the proposal said. The company also has failed to share “sufficient quantitative hiring, retention and promotion data,” the advocacy group said.

“Hiring, promotion and retention rate data show how well a company manages its workforce diversity,” As You Sow’s proposal said.

Cintas did not immediately provide any comment after the vote.

In its proxy statement, the company said it annually publishes an environmental, social and governance report that includes information about its diversity approach as well as data on the gender, racial and age group composition of its workforce.

“We believe that these disclosures provide investors with necessary and appropriate information to determine the effectiveness of our DEI and human capital management efforts,” the company said.

Another proposal brought by shareholder John Chevedden asked the company to issue “near and long-term science-based GHG reduction targets aligned with the Paris Agreement’s ambition of maintaining global temperature rise to 1.5˚C and summarize plans to achieve them.”

Chevedden said Cintas hasn’t done enough to address severe weather conditions that could harm the business. He pointed to companies like ABM Industries and Aramark that have committed to set goals in line with the Science Based Targets Initiative, which helps businesses establish emission reduction targets.

“Whether the Company’s actions align with a science-based pathway to reach net zero remains unclear,” Chevedden said.

In its proxy statement, Cintas said it has been publicly reporting its progress toward its 2050 net-zero goal on an annual basis in its environmental, social and governance reports.

The proposal would require Cintas “to divert time and effort from our ongoing efforts of identifying, addressing, and managing climate-related risks, including related to GHG emissions, to undergo a potentially costly and burdensome target-setting process,” the company said.