ALCOA INC. | Lobbying expenditures disclosure at Alcoa Inc.

Status
AGM passed
AGM date
Previous AGM date
Proposal number
4
Resolution details
Company ticker
AA
Lead filer
Individual
Resolution ask
Report on or disclose
ESG theme
  • Governance
ESG sub-theme
  • Lobbying / political engagement
Type of vote
Shareholder proposal
Filer type
Shareholder
Company sector
Materials
Company HQ country
United States
Resolved clause
Resolved, the stockholders of Alcoa 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 Alcoa 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. Alcoa’s membership in and payments to any tax-exempt organization that writes and endorses model legislation;
4. Description of management’s decision-making process and the Board’s oversight for making payments described
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 Alcoa 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 Safety, Sustainability and Public Issues Committee and posted on Alcoa’s website.
Supporting statement
Supporting Statement
Full disclosure of Alcoa’s lobbying activities and expenditures is needed to assess whether its lobbying is consistent with its
expressed goals and stockholder interests. Alcoa’s lobbying White House to block U.S. imports of Russian aluminum has
drawn scrutiny.1 Alcoa spent $9 million from 2017 - 2022 on federal lobbying. This does not include state lobbying, where
Alcoa also lobbies but disclosure is uneven or absent. Alcoa also lobbies abroad, spending between €300,000 - 399,999 on
lobbying in Europe for 2022.
Companies can give unlimited amounts to third party groups that spend millions on lobbying and often undisclosed
grassroots activity.2 Alcoa fails to disclose its memberships in or payments to trade associations and social welfare groups
(SWGs), or the amounts used for lobbying, to stockholders. Alcoa serves on the board of the National Association of
Manufacturers (NAM) and also belongs to the Aluminum Association and Institute of Scrap Recycling Industries, which
together spent $11 million on federal lobbying for 2022.
I am concerned that Alcoa’ lack of disclosure presents reputational risk when its lobbying contradicts company public
positions. For example, Alcoa publicly supports addressing climate change, yet NAM leverages its “influence to obstruct
climate policy progress in the U.S. at the federal, state and local levels.”3 Alcoa has previously attracted scrutiny for
avoiding federal income taxes through the use of offshore tax havens,4 while NAM has attracted attention for opposing a
new corporate minimum tax.5 And while Alcoa does not belong to the controversial American Legislative Exchange Council,
which is attacking “woke” investing,6 it was represented by NAM, which previously sat on its Private Enterprise Advisory
Council.7
Reputational damage stemming from these misalignments could harm stockholder value. Thus it will be a best practice for
Alcoa to expand its lobbying disclosure.
1 https://finance.yahoo.com/news/alcoa-lobbying-white-house-block-204655430.htmI.
2 https://theintercept.com/2019/08/06/business-group-spending-on-lobbying-in-washington-is-at-least-double-whatspublicly-reported/.
3 https://www.greenbiz.com/article/dont-play-both-sides-take-3-steps-now-fix-your-trade-group-gap.
4 https://itep.org/offshoreshellgames2017/.
5 https://www.nytimes.com/2023/09/07/business/corporate-minimum-tax-impact.html.
6 https://www.wbur.org/hereandnow/2023/03/22/esg-investing-fossil-fueIs.
7 https://www.exposedbycmd.org/2023/02/03/alec-expands-private-board-of-directors-with-woke-capitaIism-fighters/.

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