VERIZON COMMUNICATIONS INC. | Report on framework to address climate lobbying misalignment at Verizon Communications Inc.

Status
Filed
Previous AGM date
Resolution details
Company ticker
VZ
Lead filer
Trillium Asset Management
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
Telecom
Company HQ country
United States
Resolved clause
Shareholders request the Board of Directors analyze and report to shareholders annually (at reasonable cost and omitting confidential information) on whether and how Verizon is aligning its lobbying and policy influence activities and positions, both direct and indirect (through trade associations, coalitions, alliances, and other organizations) with its climate targets and commitments, including the activities and positions analyzed, the criteria used to assess alignment, and involvement of stakeholders, if any, in its analytical process.

In evaluating the degree of alignment between its decarbonization goals and its lobbying, Verizon 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,13 a valuable resource for implementation.
Whereas clause
In its 2023 10-K, Verizon acknowledges that the physical impacts of climate change could cause considerable damage to its infrastructure, disrupt service, and interrupt the flow of products and services from key suppliers. It notes the latter could lead to financial results that “differ materially” from those in its forward-looking statements.

Hurricanes Helene and Milton are examples of climate change enhanced events that caused considerable damage to Verizon’s networks, leading to widespread cell and internet outages.1,2,3 As global temperatures rise, the frequency and intensity of severe weather have the potential to hamper Verizon’s ability to do business and deliver core customer services.4

Verizon identifies climate change as a high priority issue5 and has set goals to reduce its operational greenhouse gas emissions by 53% by 2030 and value chain emissions by 40% by 2035. It is also pressing its high-impact value chain companies to adopt aggressive emissions reduction targets. While targets are critical, physical and transition risks associated with climate change will very likely continue beyond 2030. One of Verizon’s most effective tools to mitigate future infrastructure damage is its public policy advocacy to help scale policies that accelerate adoption of low carbon energy and facilitate resiliency, extreme physical risk mitigation, and economywide decarbonization.

Yet, Verizon rarely discloses its climate public policy priorities and risks reputational damage6 and contributing to systemic risk7 by funding organizations lobbying against climate legislation. It is a member of several industry associations that actively impede adoption of critical climate policies, including the National Association of Manufacturers,8 Business Roundtable,9 and California Chamber of Commerce.10

Currently, Verizon’s disclosures do not adequately inform investors about how it ensures its direct and indirect lobbying supports and aligns with its enterprise-wide decarbonization goals and strategies. Many companies are now issuing climate lobbying disclosures to better inform investors, including Unilever11 and Enel12 as leading examples.

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