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Companies with carbon-intensive operations face potential regulatory and stranded asset risks, while climate hazards can disrupt operations and supply chains across sectors. Through engagement, Boston Common seeks information to assess how companies address these exposures through transition planning, capital allocation, and governance.

Our climate engagement builds on multiyear dialogues. We prioritize companies with high emissions relative to peers that may fall short of their targets; climate solutions providers that have moved away from third-party target certification; and companies that lag peers in disclosure, action, and target setting. Across these groups, we seek to understand how stated commitments translate into business decisions and measurable progress.

In the third quarter of 2026, we contacted 14 companies regarding value-chain emissions, physical risk assessments, climate governance, and resource efficiency. The following examples illustrate the questions that guided our outreach and the role of sustained dialogue in assessing companies’ responses.

Climate Governance.

We asked companies whether their expertise, oversight, and incentives support their climate objectives and their ability to adapt to evolving risks. Accton Technology, a manufacturer of networking equipment used in data centers and telecommunications networks, previously committed to setting a science-based target. Its supply chain also faces environmental risks tied to critical minerals. Our engagement focuses on how the company’s governance and oversight address these exposures, including whether management incentives align with its climate goals.

Climate Targets.

We assess companies’ progress toward emissions-reduction targets and whether those targets cover material upstream and downstream emissions. When progress falls short, we seek to understand the obstacles and companies’ plans to address them. Advanced Info Service (AIS), a Thai provider of mobile, broadband, and enterprise technology services, previously committed to setting science-based targets. We are asking how it plans to meet those commitments as its support for data center expansion increases its energy needs.

Supply Chain Adaptation/Resilience.

Exposure to climate and nature risks can extend beyond a company’s operations to raw material sourcing and manufacturing. We ask companies how they identify these vulnerabilities and incorporate them into sourcing decisions. Quest Diagnostics, a provider of laboratory testing and diagnostic services, has described a new process for incorporating climate-related risks into sourcing decisions. We have asked how the process identifies and evaluates these risks and how the findings influence supplier selection and purchasing.

Eco-Efficiency & Circularity.

More efficient use of energy and materials, along with product reuse and recovery, can support productivity. Our longstanding dialogue with GXO Logistics, a provider of warehousing, order fulfillment, and returns management services, focuses on how the company measures the results of its resource-efficiency initiatives. These include improving fleet efficiency and using take-back programs to extend product life. We seek evidence of how these initiatives reduce resource use and improve operating performance.

As companies respond, we will assess what their disclosures reveal about implementation, remaining gaps, and priorities for further engagement. The future updates we share will distinguish between stated commitments, changes in business practices, and measurable results.

Sustained Dialogue

Boston Common began engaging the warehousing, order fulfillment, and returns management services company GXO Logistics on climate-related issues in 2022. Our dialogue has focused on how the company manages climate risk as it grows through acquisitions.

In September, we met with GXO following the release of its 2025 Impact Report to discuss reported progress and remaining gaps in its emissions disclosure and target-setting.

In 2025, GXO conducted a climate risk assessment and a double materiality assessment aligned with the EU’s Corporate Sustainability Reporting Directive.1 These assessments examined climate exposures alongside other topics, including employee engagement, health and safety, and cybersecurity.

GXO reported a 21.5% reduction in absolute Scope 1 and 2 greenhouse gas emissions relative to its revised 2022 baseline, with renewable sources supplying approximately 22% of its global electricity. The company also met its 80% global landfill diversion target and surpassed its LED lighting target, reaching 88% across global operations. These figures indicate progress, although changes to GXO’s emissions calculation methodology limit comparisons with some prior-year data.2

Our engagement continues to focus on more comprehensive Scope 3 emissions reporting and greater clarity on emissions from the company’s distribution fleet. We have encouraged GXO to address these disclosure gaps in its next reporting cycle and to set climate targets with detailed implementation plans. This information would help investors assess the scope of its commitments and the operational changes required to achieve them.

We also encouraged GXO to expand its circular logistics services, including reverse logistics, take-back programs, and recycling partnerships. These services could help customers recover products and materials while strengthening GXO’s competitive position. Our continued dialogue will focus on how the company measures its contribution to resource efficiency and business performance.

1 A double materiality assessment examines a company’s activities from two perspectives: Financial materiality, or how environmental and social issues could affect the company’s financial performance. Impact materiality, or how the company affects people and the environment.

2 Impact Report 2025 | GXO

Published On: October 1, 2026

This piece is intended as an editorial review of a survey of risk considerations and does not constitute investment advice, a solicitation, or an offer to buy or sell any security. Past performance does not guarantee future results. All investments involve risk, including the risk of loss of principal.

Company developments described in this report occurred during the period of our engagement but should not be assumed to have resulted from Boston Common’s activities. Where we believe our engagement contributed to a development, we describe the basis for that assessment.

References to third-party research, publications, and data sources are provided for informational purposes only. Boston Common Asset Management does not warrant the accuracy or completeness of third-party information cited herein. Readers should consult original sources and qualified professional advisors before making any investment decision.