Whereas, we believe in full disclosure of The AES Corporation’s (“AES”) direct and indirect lobbying activities and expenditures to assess whether its lobbying is consistent with its expressed goals and in stockholders’ best interests.

RESOLVED, the stockholders of AES request the preparation of a report, updated annually, disclosing:

1. Company policy and procedures governing lobbying, both direct and indirect, and grassroots lobbying communications.

2. Payments by AES 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. AES’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 AES is a member. Both “direct and indirect lobbying” and “grassroots lobbying communications” include efforts at the local, state and federal levels.

The report shall be presented to the Audit Committee or other relevant oversight committees and posted on AES’s website.

Supporting Statement AES spent $3,980,000 from 2010 – 2018 on federal lobbying. This does not include state lobbying, where AES also lobbies but disclosure is uneven or absent. For example, AES spent $554,527 on lobbying in California from 2010 – 2018. And AES’s lobbying in Puerto Rico has attracted media scrutiny, as has its lobbying to ease coal ash regulations.

AES belongs to the Business Roundtable, which spent $23,160,000 on lobbying for 2018 and is lobbying against shareholder rights to file resolutions. AES does not comprehensively disclose its trade association memberships, nor payments and amounts used for lobbying. AES’s Charitable Contribution and Political Donations Policy states it will only disclose its trade association payments used for political contributions. This leaves a serious disclosure gap, as trade associations generally spend far more on lobbying than on political contributions. And AES does not disclose its payments to tax-exempt organizations that write and endorse model legislation, such as the American Legislative Exchange Council (ALEC).

We are concerned that AES’s lack of lobbying disclosure presents reputational and business risks. AES’s ALEC membership has drawn scrutiny, and over 110 companies have publicly left ALEC. Investors participating in the Climate Action 100+ representing $34 trillion in assets are asking companies to align their lobbying with the goals of the Paris agreement.

We believe reputational damage stemming from misalignment between policy positions and actual direct and indirect lobbying efforts harms long-term value creation by AES. Thus, we urge AES to expand its lobbying disclosure.