Air Products & Chemicals | Report on lobbying at Air Products & Chemicals

Status
Omitted
AGM date
Previous AGM date
Resolution details
Company ticker
APD
Lead filer
Individual
Resolution ask
Report on or disclose
ESG theme
  • Social
ESG sub-theme
  • Lobbying / political engagement
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Materials
Company HQ country
United States
Resolved clause
Shareholders request the preparation of a report, updated annually, disclosing:

Air Products' policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications.
Air Products' payments used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payments and the recipient.
Air Products' membership in and payments to any tax-exempt organization that writes and endorses model legislation.
Description of management's decision-making process and the Board's 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 Air Products 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 Corporate Governance and Nominating Committee and posted on Air Products' website.
Whereas clause
Full disclosure of Air Products' lobbying activities and expenditures is needed to assess whether Air Products' lobbying is consistent with its expressed goals and shareholders' interests. Air Products spent $1.3 million on 2023 federal lobbying. This does not include state lobbying, where Air Products hired 25 lobbyists in Louisiana to lobby for a "blue hydrogen" plant in 2023 and spent over $1.4 million in California from 2019 - 2023. Air Products also lobbies abroad, drawing attention for lobbying at the UN climate change conference and spending between €100,000 - 199,999 on lobbying in Europe for 2023.

Companies can give unlimited amounts to third party groups that spend millions on lobbying and undisclosed grassroots activity. Air Products fails to disclose shareholders its memberships in or payments to trade associations and social welfare groups, or the amounts used for lobbying. Air Products previously has been identified as serving on the board of the National Association of Manufacturers, which has spent over $200 million on federal lobbying since 1998.

Air Products' lack of disclosure presents reputational risk when its lobbying contradicts company policy positions. For example, Air Products is funding organizations supporting environmental improvements for Lake Maurepas, yet has drawn attention for lobbying for a project described as more pollution in Louisiana's 'Cancer Alley.' Air Products does not disclose if it supports the American Legislative Exchange Council, which attacks stakeholder capitalism. However, Air Products was represented by the National Association of Manufacturers, which previously sat on the Private Enterprise Advisory Council of the American Legislative Exchange Council.

Shareholders urge Air Products to Expand its lobbying disclosure.

DISCLAIMER: By including a shareholder resolution or management proposal in this database, neither the PRI nor the sponsor of the resolution or proposal is seeking authority to act as proxy for any shareholder; shareholders should vote their proxies in accordance with their own policies and requirements.

Any voting recommendations set forth in the descriptions of the resolutions and management proposals included in this database are made by the sponsors of those resolutions and proposals, and do not represent the views of the PRI.

Information on the shareholder resolutions, management proposals and votes in this database have been obtained from sources that are believed to be reliable, but the PRI does not represent that it is accurate, complete, or up-to-date, including information relating to resolutions and management proposals, other signatories’ vote pre-declarations (including voting rationales), or the current status of a resolution or proposal. You should consult companies’ proxy statements for complete information on all matters to be voted on at a meeting.