WHEREAS, we believe in full disclosure of UPS's lobbying activities and expenditures to assess whether its lobbying is consistent with UPS's expressed goals and in the best interests of shareowners. 

RESOLVED: the shareowners of UPS request the Board prepare a report, updated annually, disclosing: 

1.    Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications.
2.    Payments by UPS used for (a) direct or indirect lobbying or (b) grassroots lobbying communications, in each case including the amount of the payment and the recipient.
3.    UPS's membership in and payments to any tax-exempt organization that writes and endorses model legislation.
4.    Description of management's and the Board's decision making process and oversight for making payments described in sections 2 and 3 above

For purposes of this proposal, a "grassroots lobbying communication" is a communication directed to the general public that (a) refers to specific legislation or regulation, (b) reflects a view on the legislation or regulation and (c) encourages the recipient of the communication to take action with respect to the legislation or regulation. "Indirect lobbying" is lobbying engaged in by a trade association or other organization of which UPS is a member. 

"Direct and indirect lobbying" and "grassroots lobbying communications" include efforts at the local, state and federal levels. 

The report shall be presented to the Nominating and Corporate Governance Committee and posted on UPS's website. 

Supporting Statement: We encourage transparency in UP S's use of funds to lobby. We appreciate UPS' website disclosure on political contributions, but UPS's lobbying payments through trade associations remain secret. 

UPS spent $60.7 million from 2010 - 2018 on federal lobbying. This does not include state lobbying, where UPS also lobbies but disclosure is uneven or absent. One study found UPS spent $1,587,609 lobbying in six states from 2012 - 2015 (Sustainable Investments Institute, February 2017). 

UPS sits on the board of the Chamber of Commerce, which has spent over $1.5 billion lobbying since 1998, and belongs to the Business Roundtable, which is lobbying against shareholder rights to file resolutions.

UPS does not disclose its memberships in, or payments to trade associations, or the amounts for lobbying. 

And UPS does not disclose its membership in tax-exempt organizations that write and endorse model legislation, such as sitting on the Private Enterprise Advisory Council of the American Legislative Exchange Council (ALEC). UPS's ALEC membership has drawn press scrutiny ("UPS and Pfizer's Dirty Little Secret," Washington Post, December 5, 2017). Over 110 companies have left ALEC, including ExxonMobil, Home Depot, Pepsi and Walmart. 

We believe UPS's lack of trade association disclosure presents reputational risks. For example, UPS strongly supports efforts to mitigate the impact of climate change, yet the Chamber opposed the Paris climate accord. UPS uses the Global Reporting Initiative (GRI) for sustainability reporting, yet currently fails to report "any differences between its lobbying positions and any stated policies, goals, or other public positions" under GRI Standard 415. 

We urge UPS to expand its lobbying disclosure. 

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