Carrier Global | Lobbying Expenditures Disclosure at Carrier Global

Status
23.13% votes in favour
AGM date
Previous AGM date
Proposal number
4
Resolution details
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 HQ country
United States
Resolved clause
RESOLVED, the shareowners of Carrier 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 Carrier 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. CarrierÕs membership in and payments to any tax-exempt organization that writes and endorses model legislation;
4. Description of managementÕs decision-making process and the BoardÕs oversight for making payments described above.
For purposes of this proposal, a Ògrassroots lobbying communicationÓ 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. ÒIndirect lobbyingÓ is lobbying engaged in by a trade association or other organization of which Carrier is a member.
Both Òdirect and indirect lobbyingÓ and Ògrassroots lobbying communicationsÓ include efforts at the local, state and federal levels.
The report shall be presented to the Governance Committee and posted on CarrierÕs website.
Supporting statement
SUPPORTING STATEMENT
Full disclosure of CarrierÕs lobbying activities and expenditures is needed to assess whether its lobbying is consistent with its expressed goals and shareowner interests. Carrier spent $5,598,552 from 2020 Ð 2022 on federal lobbying. This does not include state lobbying, where Carrier also lobbies but disclosure is uneven or absent. For example, Carrier spent $318,296 on lobbying in California from 2020 Ð 2022.
Companies can give unlimited amounts to third party groups that spend millions on lobbying and often undisclosed grassroots activity. These groups may be spending Òat least double whatÕs publicly reported.Ó1 Carrier fails to disclose its payments to trade associations and social welfare groups (SWGs), or the amounts used for lobbying, to shareowners. Carrier discloses memberships in the Business Roundatble and National Association of Manufacturers (NAM), which together have spent over $600 million on federal lobbying since 1998.
CarrierÕs lack of disclosure presents reputational risk when its lobbying contradicts company public positions. For example, Carrier publicly supports addressing climate change and, as a provider of healthy, safe, sustainable and intelligent building and cold chain solutions, ranked eighth on BarronÕs 2023 list of the?100 most sustainable companies.2 Yet the Business Roundtable opposed the Inflation Reduction Act and its historic investments in climate action3 and NAM leverages its Òinfluence to obstruct climate policy progress in the U.S. at the federal, state and local levels.Ó4 And while Carrier does not belong to the controversial American Legislative Exchange Council, which is attacking ÒwokeÓ investing,5 it was represented by NAM, which previously sat on its Private Enterprise Advisory Council.6
Reputational damage stemming from these misalignments could harm shareowner value. Carrier should expand its lobbying disclosure.
1 https://theintercept.com/2019/08/06/business-group-spending-on-lobbying-in-washington-is-at-least-double-whats-publicly-reported/.Ê
2 https://www.prnewswire.com/news-releases/carrier-ranks-no-8-on-barrons-100-most-sustainable-companies-2023-list-301763675.html.Ê
3 https://www.theguardian.com/environment/2022/aug/19/top-us-business-lobby-group-climate-action-business-roundtable.Ê
4 https://www.greenbiz.com/article/dont-play-both-sides-take-3-steps-now-fix-your-trade-group-gap.
5 https://www.wbur.org/hereandnow/2023/03/22/esg-investing-fossil-fuels.Ê
6 https://www.exposedbycmd.org/2023/02/03/alec-expands-private-board-of-directors-with-woke-capitalism-fighters/.

Filed by John Chevedden

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