Lobbying Governance
| Overall Assessment | Analysis | Score |
|---|---|---|
| Limited |
LPL Financial provides only limited insight into how its political engagement is governed. The company notes that "the PAC is a bipartisan committee that is overseen by the board of directors" and that "the PAC board directors approve the PAC budget, including which members of Congress are included in the budget and the overall PAC strategy," indicating that a board-level body reviews and signs off on at least one element of its direct political spending. However, the disclosures focus on the mechanics of PAC contributions rather than on any policy or process to ensure that lobbying positions—particularly those related to climate—are consistent with the firm’s stated sustainability objectives. While multiple committees oversee climate risk and ESG matters, such as the "ESG Steering Committee" and a "climate working group," these descriptions relate to risk management and disclosure, and we found no evidence that they are charged with monitoring or aligning lobbying activities. The company also states "No, and we do not plan to have one in the next two years" when asked about a commitment to conduct engagement in line with the Paris Agreement, underscoring the absence of a climate-specific lobbying framework. There is no mention of reviewing or engaging trade associations, setting alignment criteria, or commissioning external assessments of lobbying consistency. Overall, the only disclosed governance mechanism is board oversight of PAC budgeting, which is a narrow control and does not extend to a comprehensive climate-lobbying alignment process.
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