Huntsman Corporation | Report on lobbying at Huntsman Corporation

Status
Filed
AGM date
Previous AGM date
Resolution details
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 HQ country
United States
Resolved clause
Shareholders 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 Huntsman 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) Huntsman’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 Huntsman 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 and posted on Huntsman’s website.
Supporting statement
Full disclosure of Huntsman’s lobbying activities and expenditures is needed to assess whether its lobbying is consistent with its expressed goals and stockholder interests. Huntsman spent $8,337,500 from 2018 – 2023 on federal lobbying. Huntsman also lobbies at the state level, for example spending between $101,080 – 283,060 on lobbying in Texas for 2023. Huntsman also lobbies abroad, spending between €100,000 – 199,999 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. These groups may be spending “at least double what’s publicly reported.” [1] Unlike peers Dow and Eastman Chemical, Huntsman fails to disclose its memberships in or payments to trade associations and social welfare groups, or the amounts used for lobbying, to stockholders. Huntsman belongs to the American Chemistry Council, American Fuel and Petrochemical Manufacturers and US-China Business Council, which spent $22,940,000 on federal lobbying for 2023.

Huntsman’ lack of disclosure presents reputational risk when its lobbying contradicts company public positions. For example, Huntsman supports full circularity and sustainable chemistry as part of its long-term sustainability aspirations, yet the American Chemistry Council spent over $800,000 in New York lobbying against the Packaging Reduction and Recycling Infrastructure Act to cut plastic packaging by half over the next 12 years. [2] And while Huntsman does not belong to the controversial American Legislative Exchange Council (ALEC), which has pushed preemption legislation to deny municipalities the right to access courts, [3] the American Chemistry Council and American Fuel and Petrochemical Manufacturers have reportedly backed ALEC’s anti-protest fossil fuel bills. [4] Reputational damage stemming from these misalignments could harm stockholder value. Huntsman should expand its lobbying disclosure.



[1] https://theintercept.com/2019/08/06/business-group-spending-on-lobbying-in-washington-is-at-least-double-whats-publicly-reported/.

[2] https://citylimits.org/2024/03/07/chemical-industry-amps-up-lobbying-to-block-new-yorks-waste-reduction-bill/.

[3] https://climateintegrity.org/news/view/new-report-documents-the-corporate-campaign-to-deny-municipalities-access-to-the-courts.

[4] https://www.sierraclub.org/sierra/states-crack-down-environmental-activists.

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