Resolution Details
EOG Resources, Inc.
2023
Lobbying & Political Contributions
Climate Lobbying, Paris-Aligned Climate Lobbying
Withdrawn for Agreement
Resolution Text
WHEREAS: The United Nations Framework Convention on Climate Change asserts that greenhouse gas emissions must decline by 45 percent from 2010 levels 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.1
EOG Resources has set a net zero goal by 2040 for Scope 1 and Scope 2 greenhouse gas emissions. However, for the Company to achieve its climate goals, supportive public policy is essential. Therefore, the Company should ensure that all public policy advocacy activities and spending are aligned and coordinated, including support for third party organizations that engage in lobbying.
Even with the recent passage of the Inflation Reduction Act, critical gaps remain between Nationally Determined Contributions set by the US government and the actions required to prevent the worst effects of climate change. Domestically and internationally, companies have an important and constructive role to play in enabling policymakers to close these gaps.
Corporate lobbying that is inconsistent with the Paris Agreement and companies’ own net zero targets presents increasingly material risks to companies and their shareholders, as delays in emissions reductions undermine political stability, damage infrastructure, impair access to finance and insurance, and exacerbate health risks and costs. Further, companies face increasing reputational risks from consumers, investors, and other stakeholders if they appear to delay or block effective climate policy.
Of particular concern are trade associations and other politically active organizations that say they speak for business but too often present forceful obstacles to addressing the climate crisis.
RESOLVED: Shareholders of EOG Resources, Inc. (“EOG”) request that the Board of Directors annually analyze and report to shareholders (at reasonable cost, omitting confidential and proprietary information) on whether and how EOG is aligning its lobbying and policy influence activities and positions, both direct and indirect (through trade associations, coalitions, alliances, and other organizations), with its commitment to achieve net zero emissions by 2040, including the activities and positions analyzed, the criteria used to assess alignment, and involvement of stakeholders, if any, in the analytical process.
SUPPORTING STATEMENT: In evaluating the degree of alignment between EOG’s emissions goals and its lobbying, the proponents recommend that the Company include in its analysis EOG’s direct and indirect policy positions and lobbying actions, such as comment submissions, with regard to climate provisions of key international, federal and state legislation and regulation.
The proponents believe this request is generally consistent with the investor expectations described in the Global Standard on Responsible Climate Lobbying, and that this Standard is a useful resource for implementation.2
1. https://unfccc.int/news/updated-ndc-synthesis-report-worrying-trends-confirmed
2. https://climate-lobbying.com/wp-content/uploads/2022/03/2022_global-standard-responsible-climate-lobbying_APPENDIX.pdf