According to the most recent annual "Emissions Gap Report" by the United Nations Environment Programme (November 26, 2019), critical gaps remain between the commitments by national governments and the actions required to prevent the worst effects of climate change. Negative corporate lobbying exacerbates this gap.

Corporate lobbying that is inconsistent with meeting the Paris Agreement goals presents regulatory, reputational and legal risks. It also presents systemic risks to our economies, as delays in implementation of the Paris Agreement increase the physical risks of climate change, pose a systemic risk to economic stability and introduce uncertainty and volatility into investors' portfolios. We believe that Paris-aligned climate lobbying helps to mitigate these risks and contributes positively to the long-term value of our portfolios.

Of particular concern are the trade associations that often present forceful obstacles to progress in addressing the climate crisis;they also provide anonymity for member companies to advance controversial lobbying positions.

As investors, we view achieving the Paris Agreement's goal-to hold the increase in the global average temperature to "well below" 2 degrees C, and to pursue efforts to limit the increase to 1.5 degrees C-as an imperative. We are convinced unabated climate change will have a devastating impact on the value of our portfolio. We see future "business as usual" scenarios of 3-4 degrees C or greater as unacceptable and uninvestable.

Investors have consistently expressed concerns to GM about the climate implications of its lobbying to weaken vehicle emissions standards. GM discloses insufficient information to help investors understand whether it works to ensure that its lobbying activities, directly, in the company's name, and indirectly, through trade associations, align with the Paris Agreement's goals, and whether it takes any action to address any misalignments it has identified.

For the last four years, GM and its trade association lobbied to eviscerate federal vehicle emissions standards;it publicly supported significantly weakening the standards, and intervened in litigation in support of the Trump Administration's rollback. While it withdrew from the litigation in November 2020, its future positioning regarding the standards is unclear even as President-elect Biden has called for more stringent fuel economy standards.

According to The 2Degrees Investing Initiative, GM's production plans are aligned with a scenario well above 2 degrees C. Given its lobbying history, its high emission fleet, and its lack of concrete, time bound commitments to produce a significant number of electric vehicles in the U.S., investors have legitimate concerns about its lobbying.