RESOLVED: Shareholders request that the Board of Directors conduct an evaluation and issue a report (at reasonable cost, omitting proprietary information) describing if, and how, Truist Financial Corporation's ("Truist's" ) lobbying activities (direct and indirect) align with the goal of the Paris Agreement to limit average global warming to well below 2 degrees Celsius (ideally 1.5°C) and how Truist plans to mitigate risks presented by any misalignment.

SUPPORTING STATEMENT

Scientists assert that greenhouse gas emissions must decline by 45% from 2010 levels by 2030 to limit global warming to 1.5°C. If that goal isn't met, emissions will need substantial reductions thereafter, at a higher financial cost, to compensate for the slow start on the path to global net zero emissions.1

The United Nations Environment Programme reports that critical gaps remain between government commitments and the actions required to prevent the worst effects of climate change.2 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 presents increasingly material risks to investors, including systemic risks to our financial systems, as delays in emissions reductions increase the compounding physical risks of climate change, threaten economic stability, and heighten uncertainty and volatility in investment portfolios.3 We believe that Paris-aligned climate lobbying, and assessments to ensure this, help to mitigate these risks, and enhance the long-term value of companies.

Of particular concern are trade associations and other politically active organizations that speak for business but too often present forceful obstacles to progress in addressing the climate crisis. Some companies use such organizations to launch public relations campaigns to hamper emissions reduction progress.

As investors, we view fulfillment of the Paris Agreement's goal as an imperative to discharging our fiduciary duties; we are convinced that unabated climate change will have a devastating impact on political stability and infrastructure, impair access to finance and insurance, exacerbate health risks and costs, and therefore significantly impact the value of our investments . "Business as usual" climate scenarios of 3-4°C or more are unacceptable and uninvestable.

Truist has started important analysis on potential impacts to credit, liquidity, transition, and market­ wide risks from climate change, including some climate stress-testing and enhanced client due diligence. But it is unclear how this assessment takes account of (if at all) Truist's lobbying, trade association, and public communications positions related to climate policy. Investors' focus on the misalignment between companies' policies or commitments and their public policy advocacy has intensified recently,4 as has concern regarding broader corporate actions to stall short- and medium-term progress on the Paris Agreement's objectives.

Highlighting selective examples of Truist's or its trade groups' limited support for emissions progress is insufficient. We support an independent, comprehensive review of corporate lobbying and the degree of alignment with the Paris Agreement's objectives, as well as plans for actions to address any misalignment.

1 https://unfccc.int/news/updated-ndc-synthesis-report-worrying-trends-confirmed 

2 https://www.unep.org/resources/emissions-gap -report-2021

3 https://www.ace.gov/news-issuances/speeches/2021/pub-spe ech-2021-116.pdf?source=email

4 https://www.politico.com/news/2021/04/20/investors-corporate-climate-lobbying-activity-483429