RESOLVED: Shareholders request that Amazon.com, Inc. (“Amazon”) issue a report (at reasonable cost and omitting proprietary information) that describes if, and how, its lobbying activities align with the Paris Agreement goal of limiting average global warming to 1.5° Celsius above pre-industrial levels. The report should address both direct and indirect lobbying – including trade associations, “social welfare” or nonprofit organizations – and what actions Amazon has or will take to mitigate the risks associated with misalignments that may be found.

SUPPORTING STATEMENT

Recent UN reports1 highlight the critical gaps that exist between the stated commitments of national governments versus the actions needed to prevent climate change’s most disastrous outcomes. Companies play a crucial role in empowering policymakers to close these gaps; thus, investors need clear information on how, or whether, companies are taking action to do so.

Increasingly, investors scrutinize2 the potential misalignment between stated climate commitments and a company’s policy advocacy (lobbying). Corporate lobbying that is inconsistent with meeting Paris Agreement goals creates regulatory, reputational, and legal risks – both for itself and the broader economy. Furthermore, delays in cutting greenhouse gas emissions and readying societies for negative climate impacts will increase the certainty that systemic risks will harm the global economy.3 Unabated climate change – i.e., “business as usual” scenarios of 3°C or greater – will have unacceptably far-reaching economic, environmental, and societal implications. As a result, investors across the spectrum view fulfillment of the Paris Agreement as an economic imperative.

Of particular concern, therefore, are industry and policy groups4 that represent businesses like Amazon, but – counter to their member companies’ stated climate goals – create barriers to global emission reductions and policy implementation. For example, the Rhodium Group highlighted recent efforts5 “by industry lobbyists to block climate provisions in the U.S. budget reconciliation package [that] could cost...nearly one billion tons of GHG emission reductions by 2030”. A review of Amazon’s disclosed trade association and other memberships6 reveals concerning inconsistencies with the prevailing science7 and with Amazon’s own actions and commitments related to the Paris Agreement.

For example: Amazon paid for the naming rights of an iconic Seattle arena, and named it “Climate Pledge Arena”. However, at variance with this bold public proclamation, Amazon's political engagement statement8 notes that it “contributes to certain...organizations, many of which engage in indirect lobbying on behalf of the Company...[that the] Company may not agree with...” (emphasis added)

Assessing potential climate misalignment and advocacy inconsistencies across Amazon’s various businesses – while articulating a clear approach to addressing any misalignments that may be found – will protect the credibility of Amazon’s leadership efforts on climate change9, and support its renewable energy and net zero emissions goals.

THEREFORE: For the benefit of our Company as well as the common good, we urge a vote FOR this proposal, which seeks a public analysis of Amazon’s lobbying and public policy efforts vis-à-vis alignment with the objectives of the Paris Agreement.

1 www.unep.org/resources/emissions-gap-report-2021

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

3 www.federalreserve.gov/econres/notes/feds-notes/climate-change-and-financial-stability-20210319.htm

4 https://influencemap.org/report/The-Carbon-Policy-Footprint-Report-2021-670f36863e7859e1ad7848ec601dda97

5 https://rhg.com/research/build-back-better-congress-budget

6 https://ir.aboutamazon.com/corporate-governance/Political-Engagement/default.aspx

7 www.aei.org/politics-and-public-opinion/its-time-to-cancel-the-climate-crisis

8 https://s2.q4cdn.com/299287126/files/doc_downloads/2021/04/2020-Political-Engagement-Statement.pdf

9 https://sustainability.aboutamazon.com/environment/sustainable-operations/renewable-energy?energyType=true