OCCIDENTAL PETROLEUM CORPORATION | Adopt or ammend a policy on Lobbying Expenditures Disclosure at OCCIDENTAL PETROLEUM CORPORATION

Status
14.54% votes in favour
AGM date
Previous AGM date
Proposal number
4
Resolution details
Company ticker
OXY
Lead filer
Individual
Resolution ask
Report on or disclose
ESG theme
  • Governance
ESG sub-theme
  • Lobbying / political engagement
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Energy
Company HQ country
United States
Resolved clause
RESOLVED, the shareholders of Occidental 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 Occidental 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. Occidental’s membership in and payments to any tax-exempt organization that writes and endorses model legislation.
4. 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 Occidental 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 Government Affairs Committee and posted on Occidental’s website.
Supporting statement
SUPPORTING STATEMENT
Full disclosure of Occidental’s lobbying activities and expenditures is needed to assess whether its lobbying is consistent with Occidental’s expressed goals and in shareholder interests. Occidental spent $93,405,069 on federal lobbying from 2010 – 2022 and reportedly spent the most on federal lobbying among oil and natural gas companies for 2022.1 This does not include state lobbying, where Occidental also lobbies but disclosure is uneven or absent.
Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity.2 Occidental fails to disclose its payments to trade associations and social welfare groups (SWGs), or the amounts used for lobbying, to shareholders. Occidental discloses memberships in the American Chemistry Council (ACC), American Petroleum Institute, Business Roundtable, and US Chamber of Commerce, which together spent $125,640,000 on federal lobbying for 2022. Occidental’s disclosure omits major trade associations that lobby, like the American Fuel & Petrochemical Manufacturers (AFPM), and all SWGs, like the Consumer Energy Alliance (CEA) and Texas Taxpayers and Research Association.
Occidental’s lack of disclosure presents reputational risk when its lobbying contradicts company public positions. For example, Occidental touts its reputation as one of the safest producers in the industry, yet Occidental, ACC and AFPM have drawn scrutiny for reportedly lobbying to weaken rail safety legislation.3 Occidental is publicly committed to addressing climate change, yet the Chamber reportedly has been a “central actor” in dissuading climate legislation over a two-decade period.4 CEA has repeatedly been accused of using citizens’ names on government petitions and public comments without their permission.5 And while Occidental left6 the controversial American Legislative Exchange Council,7 it remains represented by the Chamber on its Private Enterprise Advisory Council.8
Occidental should expand its lobbying disclosure.
1 https://www.eenews.net/articles/top-10-lobbying-spenders-on-energy-the-environment/.
2 https://theintercept.com/2019/08/06/business-group-spending-on-lobbying-in-washington-is-at-least-double-whats-publicly-reported/.
3 https://jacobin.com/2023/08/east-palestine-occidental-petroleum-lobbying-senate-regulations.
4 https://www.washingtonpost.com/politics/2023/08/02/climate-group-pushes-big-tech-exit-nations-largest-business-lobby/.
5 https://www.cleveland.com/open/2023/09/their-names-appeared-on-letters-urging-fracking-ohios-state-parks-they-dont-know-how.html.
6 https://grist.org/business-technology/this-lobbying-shop-is-so-dirty-even-oil-companies-want-out/.
7 https://www.wbur.org/hereandnow/2023/03/22/esg-investing-fossil-fuels.
8 https://ohiocapitaljournal.com/2023/09/06/coming-soon-in-ohio-alec-releases-new-raft-of-model-legislation/.

Filed by John Chevedden

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