INTERNATIONAL BUSINESS MACHINES (IBM) CORPORATION | Paris-Aligned Lobbying—Net Zero Assessment at International Business Machines Corp. (IBM)

Status
31.79% votes in favour
AGM date
Previous AGM date
Proposal number
7
Resolution details
Company ticker
IBM
Lead filer
Individual
Resolution ask
Report on or disclose
ESG theme
  • Environment
ESG sub-theme
  • Lobbying / political engagement
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Technology
Company HQ country
United States
Resolved clause
RESOLVED: Shareholders request the Board of International Business Machines (“IBM” or “Company”) annually analyze and report to shareholders (at reasonable cost, omitting proprietary information) on whether and how IBM is aligning its lobbying and policy influence activities and positions, both direct and indirect (through trade associations, coalitions, alliances, and other organizations) with its target of net-zero emissions 2030, including the activities and positions analyzed, the criteria used to assess alignment, and involvement of stakeholders, if any, in the analytical process.
In evaluating the degree of alignment between the Company’s emissions goals and its lobbying, IBM should consider not only its policy positions and those of organizations of which it is a member but also the actual lobbying activities, such as legislative comment submissions.
The proponent believes this request is consistent with investor expectations described in the Global Standard on Responsible Climate Lobbying,[1] a valuable resource for implementation. 
Supporting statement
SUPPORTING STATEMENT:
The United Nations Framework Convention on Climate Change asserts that greenhouse gas emissions must decline 45 percent from 2010 by 2030 to limit global warming to 1.5 degrees Celsius. If that goal is not met, even more rapid reductions, at greater cost, will be required to compensate for the slow start on the path to global net-zero emissions.[2]  
IBM has publicly committed to achieving net-zero emissions by 2030, supports the Paris Agreement’s goals, and believes that all society sectors must participate in climate change solutions.[3] However, IBM does not describe its direct and indirect federal or state lobbying efforts to engage in climate-related policy issues. Corporate lobbying inconsistent with the Paris Agreement and companies’ net zero targets presents increasingly material risks to companies and their shareholders.
IBM has disclosed that it spent over $25 million since 2018 on federal lobbying. This does not include certain undisclosed state lobbying expenditures. IBM provides direct links on its public policy website to where it files quarterly lobbying activity and expenditure reports. Enhancing this by reporting how the company’s lobbying activities align with its net-zero targets would fill critical disclosure gaps for shareholders.
Even with the recent passage of the Inflation Reduction Act, critical gaps remain between the United States’ Nationally Determined Contributions and necessary climate action. Companies like IBM have an essential role in enabling policymakers to close these gaps, given the increasingly material risks they face with delays in emissions reductions. 
Of particular concern are trade associations that say they speak for business but too often present forceful obstacles to addressing climate change. IBM is a member of trade associations, such as the Business Roundtable, engaging with largely negative climate policy positions. Although IBM states that it will share its dissenting views with trade associations in public when it helps the policy debate, stockholders have yet to see such disclosure on climate policy. Shareholders discount hypocritical companies. 
[1] https://climate-lobbying.com
[2] https://unfccc.int/news/updated-ndc-synthesis-report-worrying-trends-confirmed
[3] https://www.ibm.com/about/environment/energy-climate

James McRitchie.

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