Page 96 - Martin Marietta - 2023 Proxy Statement

Proposal 5: Shareholder Proposal, if Properly

Presented at the Meeting, Requesting the

Establishment Within a Year of GHG Reduction

Targets

Amundi Asset Management has notified the Company that they intend to submit the following shareholder proposal at
this year’s Annual Meeting of Shareholders. As explained below, the Board recommends voting AGAINST their proposal.
The proponent is responsible for the content of the following proposal, for which the Company and the Board accept no
responsibility including the footnotes including web addresses which are not incorporated into this proxy statement.
Shareholder Proposal – Greenhouse Gas Emissions Reduction Targets
WHEREAS: The Intergovernmental Panel on Climate Change (IPCC) has advised that greenhouse gas (GHG) emissions
must be halved by 2030 and reach net zero by 2050 to limit global warming to 1.5°C.

As investors, we believe failing to meet the Paris Agreement’s goal will have a devastating impact on the value of our
clients’ portfolios.

In its 2021 10-K, Martin Marietta Materials (“Martin Marietta”, or “the Company”) noted, “Climate change may result in
physical and financial impacts that could have adverse effects on the Company’s operations or financial condition.” The
1
Company’s emissions reduction strategy falls short of what is needed to shield it and investors from climate-related risks.
The Company does not have emissions reduction targets covering its entire Scope 1 footprint, nor does it have a strategy
to limit those emissions.
Without stronger GHG emissions reduction targets, Martin Marietta is falling behind its peers. Construction materials
companies such as CEMEX, HeidelbergCement AG, Holcim Ltd., Imerys and many others have already committed to set a
long-term net zero target through the Science Based Targets initiative (SBTi) for its entire carbon footprint and has
promised to deliver net-zero concrete to all customers globally by 2050. 2
There is growing interest from investors for increased disclosure into how companies are addressing the climate crisis and
plan to transition their business model to one that aligns with efforts to limit global warming, in line with the Paris
Agreement goals. To assist companies in developing transition plans, groups including We Mean Business, CDP, and the
Task Force on Climate-Related Financial Disclosures (TCFD) have provided guidance on writing comprehensive transition
plans to achieve science-based GHG reductions.

The Science-Based Target initiative (SBTi) has recently released, in September 2022, its guidance for the cement sector .
3
This guidance is applicable to all companies for which clinker/cement production makes up more than 5% of their
greenhouse gas emissions. In Martin Marietta’s case, in 2021 cement production represented 59% of scope 1 emissions.

Proponents believe Martin Marietta must take additional action to address its full climate impact, including the physical
risks to its operations and supply chain, and the transition risk associated with new regulation and a global shift to a low
carbon economy. The Company can do this by adopting science-based targets for its full carbon footprint supported by a
comprehensive transition plan.

RESOLVED:
Shareholders request Martin Marietta Materials, within a year, issue near, medium and long-term science-based GHG
reduction targets aligned with the Paris Agreement’s ambition of maintaining global temperature rise to well below
2°C above pre-industrial levels, and pursuing efforts to limit the temperature increase to 1.5°C, and summarize plans to
1 https://www.sec.gov/ix?doc=/Archies/edgar/data/916076/000156459022005965/mlm-10k_20211231.htm p.9
2 https://sciencebasedtargets.org/companies-taking-action
3 https://sciencebasedtargets.org/sectors/cement

90 2023 PROXY STATEMENT