Paris-Aligned Climate Lobbying

Resolution Text

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, Uber, Inc.’s (“Uber’s”) lobbying activities (both direct and indirect) align with the ultimate goal of the Paris Agreement to limit average global warming to 1.5° Celsius, and how Uber 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.[1]

The United Nations Environment Programme reports that critical gaps remain between government commitments and actions required to prevent the worst impacts from climate change.[2] Companies have an important and constructive role to play in enabling policymakers to close these gaps.

Uber strongly supports the goals of the Paris Agreement and has joined the Science-Based Targets initiative, committing to be a zero emissions platform by 2040. Uber has lobbied in support of policies to address climate change including congestion pricing schemes and electric vehicle infrastructure. But it is unclear how Uber’s direct lobbying and policy advocacy through trade associations and other policy-focused third parties align with the Paris Agreement’s aims. Uber does not disclose a comprehensive list of its trade association memberships or policy organization involvement. Uber further does not disclose how it resolves any misalignment with such groups, noting: “While we may participate in these organizations, we do not exercise control over them, and we may not agree with all the positions of each organization.”[3]

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.

Corporate lobbying that is inconsistent with the Paris Agreement presents increasingly material risks to companies and 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.[4] We believe that Paris-aligned climate lobbying, and assessments to ensure alignment, help to mitigate these risks, and enhance the long-term value of companies.

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, disrupt energy availability, and impact the value of our investments. “Business as usual” climate scenarios of 3-4°C or more are unacceptable and uninvestable.

Investors’ focus on the misalignment between companies’ policies or commitments and their policy advocacy has intensified recently,[5] as has concern regarding broader corporate actions to stall short- and medium-term progress on the Paris Agreement’s objectives.

We support a comprehensive review Uber’s 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://s23.q4cdn.com/407969754/files/doc_downloads/2020/09/Summary-of-US-Corporate-Political-Activity-Policy-(2).pdf

[4] https://www.occ.gov/news-issuances/speeches/2021/pub-speech-2021-116.pdf?source=email

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

Lead Filer

Tim Brennan
Unitarian Universalist Association