Chevron - Lobbying disclosure
Whereas, we believe in full disclosure of Chevron's direct and indirect lobbying activities and expenditures to assess whether Chevron's lobby is consistent with its expressed goals and in the best interests of stockholders.
Resolved, the stockholders of Chevron request the preparation of a report, updated annually, disclosing:
1. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications. 2. Payments by Chevron used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient.3. Chevron's membership in and payments to any tax-exempt organization that writes and endorses inodel legislation. Description of management's and the Board's decision making process and oversight for making payments described in sections 2 and 3 above.
For purposes of this proposal, a "grassroots lobbying communication" is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. “Indirect lobbying' is lobbying engaged in by a trade association or other organization of which Chevron is a member.
Both “direct and indirect lobbying" and "grassroots lobbying communications" include efforts at the local, state and federal levels.
The report shall be presented to the Public Policy Committee and posted on Chevron's website.
We encourage transparency in Chevron's use of corporate funds to influence legislation and regulation, Chevron spent over $74,960,000 on federal lobbying from 2010 - 2017 on federal lobbying, These figures do not include state lobbying expenditures, where Chevron also lobbies but disclosure is uneven or absent. For example, Chevron has spent over $31 million lobbying in California from 2010 2017.
Chevron belongs to the American Petroleum Institute, Business Roundtable (BRT), Chamber of Commerce and National Association of Manufacturers (NAM), which altogether spent $260,410,014 on lobbying for 2016 and 2017. Both the BRT and NAM are lobbying against shareholder rights to file resolutions. Chevron does not disclose its payments to trade associations nor amounts used for lobbying. And Chevron does not disclose membership in or contributions to tax-exempt organizations that write and endorse model legislation, such as belonging to the American Legislative Exchange Council (ALEC).
We are concerned that Chevron's lack of lobbying disclosure presents reputational risks when its lobbying contradicts company public positions. For example, Chevron supports the Paris climate agreement, yet was named one of the top four global corporations lobbying against effective climate policy ("Corporate Carbon Policy Footprint,” Influence Map, September 2017). And Chevron's ALEC membership has drawn scrutiny ("Broad Coalition Calls on Corporations to Drop Funding for ALEC Over Horowitz Speeches," PR Watch, August 27, 2018). At least 110 companies have publicly left ALEC, including BP, ConocoPhillips, ExxonMobil and Shell. As shareholders, we believe that companies should ensure there is alignment between their own positions and their lobbying, including through trade associations.
We urge you to vote FOR this proposal.