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| Overall Assessment |
Comment |
Score |
| Comprehensive |
Southern Company has demonstrated a comprehensive level of transparency regarding its climate lobbying activities. The company explicitly names specific climate policies it has engaged with, such as the Inflation Reduction Act of 2022, including provisions like the extension of investment tax credits (ITCs) and production tax credits (PTCs) for wind and solar projects, energy storage ITCs, and the expansion of Section 45Q Carbon Capture Utilization and Sequestration tax credits. Additionally, Southern Company highlights its advocacy for policies supporting energy efficiency, electric transportation, clean energy generation incentives, and methane regulation, providing sufficient detail to identify the policies engaged with. The company also provides detailed information about its lobbying mechanisms, including direct engagement with federal agencies, Congressional staff, environmental organizations, and trade associations like the American Clean Power Association and the Edison Electric Institute. It specifies mechanisms such as company meetings, industry meetings, formal comment processes, and participation in trade groups, demonstrating transparency in both the methods and targets of its lobbying efforts. Furthermore, Southern Company clearly articulates the specific outcomes it seeks, such as achieving net-zero GHG emissions through a well-designed carbon tax, supporting durable regulatory actions under the Clean Air Act, and advocating for equitable tax policy improvements to drive the adoption of cleaner energy solutions. This level of detail reflects a high degree of transparency in its climate lobbying disclosures.
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4
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| Overall Assessment |
Comment |
Score |
| Comprehensive |
Southern Company demonstrates a comprehensive governance process for climate lobbying alignment, encompassing both direct and indirect activities, supported by detailed disclosures and robust oversight mechanisms. The company has published a "2021 Trade Association and Climate Engagement Report," which provides transparency into its climate-related lobbying activities and trade association memberships, including assessments of their alignment with the Paris Agreement. Southern Company states, "Members of the Southern Company Management Council meet at least quarterly to review the public statements, positions, and missions of the associations to assess, among other things, whether the association is aligned with our net zero goal." This quarterly review process reflects a structured approach to evaluating alignment with its climate goals. The company also outlines a clear policy for addressing misalignment, noting, "If a group is misaligned with the policy positions that Southern Company supports for a net zero transition, we evaluate and carefully assess the cost and benefits of our membership and determine whether to continue our membership," and highlights its decision to leave America's Power due to misalignment with its business goals. Oversight responsibility is clearly assigned, with the "Nominating, Governance and Corporate Responsibility Committee" having primary oversight, and lobbying-related activities being "reviewed at least annually by the full Board." Additionally, the company's direct lobbying efforts are explicitly aligned with its net zero goal and the Paris Agreement, as stated: "Our direct lobbying activities support our business objectives, including our net zero goal, and are aligned with the goals of the Paris Agreement." These disclosures indicate a robust governance process that includes clear monitoring mechanisms, accountability structures, and alignment with climate goals, ensuring strong governance of both direct and indirect lobbying activities.
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4
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