Amazon Shareholders Need Transparency on Climate Lobbying
Newground Social Investment has filed a shareholder proposal with Amazon.com Inc. (ticker: AMZN) that calls on the company to assess misalignment between its public commitment to strong climate action and its financial support for organizations whose lobbying undermines that commitment.
Despite Amazon's assertion that its lobbying and advocacy activities are “aligned with [Net Zero targets and] the Paris Agreement goals,” the company pays trade association dues and other membership fees to numerous organizations – such as the American Enterprise Institute and the California Chamber of Commerce – that consistently doubt the scientific consensus and oppose governmental policies to combat global warming.
This proposal calls on Amazon's board to investigate and report these misalignments. Unless management takes constructive steps to address these concerns, the proposal will appear in Amazon's proxy for a vote at the May 2025 annual stockholder meeting.
The full text of the proposal appears below, and is also available in its original format as a downloadable PDF.
Misalignment Between Climate Goals and Lobbying Efforts
WHEREAS: The Paris Agreement is clear (Article 2.1c) – ALL financial flows must ultimately align with climate goals. Achieving this requires a robust, fair, and ambitious policy framework that accounts for the challenges to businesses and society of limiting global warming to 1.5°C.[1]
Amazon.com Inc. (“Amazon” or “Company”) pays trade association dues and other fees[2] to influential organizations that consistently doubt the risks from, or scientific consensus on, climate change[3] – making climate policy progress difficult. Meanwhile, the Company claims that its lobbying and advocacy activities are “aligned with [Net Zero targets and] the Paris Agreement goals.”[4]
Amazon acknowledges misalignment between its policy positions and those of the third parties representing the Company, but broadly asserts that the benefits of such relationships outweigh the risks associated with misalignment.[5]
As well, Amazon discloses sporadic and incomplete details on its direct climate lobbying,[6] which prevents investors from evaluating whether these efforts are aligned with its strategy.
Amazon lags behind leading companies which: disclose the climate policy priorities needed to achieve emissions targets;[7] publish policy briefs on their views on emerging technologies;[8] assess the actions of their trade associations for alignment;[9] and report their advocacy actions publicly.[10] Some companies are even implementing third-party audits of their climate lobbying activities for Board and shareholder review.[11]
“As global temperatures and greenhouse gas emissions break records, the latest Emissions Gap Report… put[s] the world on track for a 2.5-2.9°C temperature rise,”[12] [13] which would very likely pose harm to Amazon’s business model and supply chain investments. New international reporting standards additionally mandate disclosures around climate transition strategy and lobbying alignment with such corporate planning, and will impact Amazon in the coming years.[14] [15]
Proponents believe that corporate lobbying inconsistent with the Paris Agreement poses rising enterprise and macroeconomic risk to Amazon – including legal, physical, greenwashing, technological, logistical, and policy risks, among others. Shareholders need clear, credible information on whether and how Amazon’s direct and indirect lobbying is aligned with its stated climate targets – because evidence shows a trend whereby some companies tout their climate efforts while allowing the organizations and initiatives they support to block genuine decarbonization progress.
THEREFORE, BE IT RESOLVED: Done at reasonable cost and omitting confidential/proprietary information, Amazon shareholders request the Board report on its framework for identifying and addressing misalignment between the Company’s Net Zero (emissions) climate commitments and its lobbying and policy influence activities and positions. This report should cover both direct and indirect activities undertaken through trade associations, coalitions, alliances, and social welfare organizations, and reference the criteria used to assess alignment/misalignment.
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SOURCES
1. Drawn from: https://www.unpri.org/download?ac=22189
3. https://www.aei.org/articles/what-we-really-know-about-climate-change
4. https://s2.q4cdn.com/299287126/files/doc_downloads/2022/Note-on-Alignment-with-Paris-Agreement.pdf
5. Ibid.
6. https://s2.q4cdn.com/299287126/files/doc_downloads/2023/05/2023-political-engagement-statement.pdf
8. https://query.prod.cms.rt.microsoft.com/cms/api/am/binary/RW1h4DT
9. https://www.enel.com/content/dam/enel-com/documenti/investitori/sostenibilita/2023/enel-engagement-associations-involved-climate-policy-advocacy-2023.pdf | https://www.unilever.com/files/368f87cb-dba5-4898-8ef6-eea52cb609c9/unilever-climate-policy-engagement-review.pdf | https://www.bayer.com/sites/default/files/Bayer%20Climate%20Review%202023.pdf
11. https://www.bhp.com/sustainability/climate-change/advocacy-on-climate-policy | https://www.unilever.com/files/368f87cb-dba5-4898-8ef6-eea52cb609c9/unilever-climate-policy-engagement-review.pdf
12. https://climateactiontracker.org/global/cat-emissions-gaps
13. https://www.unep.org/news-and-stories/press-release/nations-must-go-further-current-paris-pledges-or-face-global-warming | https://www.unep.org/resources/emissions-gap-report-2023
14. https://xbrl.efrag.org/e-esrs/esrs-set1-2023.html#8613
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