Southern Co/The

Lobbying Governance

AI Extracted Evidence Snippet Source

We have put in place decision-making and oversight processes for political expenditures and all governmental relations activities. Both management and the Board play important roles in these governance processes, including independent Director oversight of political expenditures and lobbying activities by our Nominating, Governance and Corporate Responsibility Committee and Audit Committee. This also includes periodic review of governmental relations activities by our internal auditing organization to assess compliance with applicable laws and Company policies and procedures, the findings of which are reported to our Audit Committee. [...] As part of our commitment to good governance, we regularly review our disclosures against best practices. We have also engaged with our stakeholders on this topic in recent years. As a result of our internal review and stakeholder feedback that can be found in the Sustainability section of our website under Policy Engagement and Advocacy at investor.southerncompany.com, we made the following enhancements to our political engagement and advocacy disclosures. [...] We published a Trade Association and Climate Engagement Report to provide additional transparency by bringing together existing disclosures and providing analysis and insight into our net zero advocacy positions and memberships in trade associations, along with an assessment of whether the climate change statements or positions of key trade associations are aligned with the goals of the Paris Agreement. [...] Our Report on Political Engagement Disclosures includes political contributions made by our subsidiaries and the lobbying dollars spent by trade associations that lobby at the state level and to which our subsidiaries pay annual dues of $50,000 or more.

https://investor.southerncompany.com/files/doc_financials/2023/ar/2024-proxy-statement.pdf

Southern Company's success, including efforts to decarbonize our system, are dependent on supportive and constructive regulation and public policy. We have long been a leader in the advancement of ideas and positions in the private and public arenas that are beneficial to our customers, communities and employees. [...] The significant progress we have made in reducing emissions and the development of a strategy for the future have occurred under the guidance and oversight of a competent and engaged Board of Directors and a committed management team. Together we are keenly focused on the planning and execution required to meet our GHG reduction goals. [...] The Company's independent Directors provide substantive oversight to our management team on strategy and risk issues across the environmental, social and governance spectrum, including carbon reduction efforts. Each committee of the Board has responsibility for key elements of risk oversight including future capital investments, stranded and physical asset risk, climate issues, human capital impacts, cybersecurity and policy advocacy. [...] Importantly, these matters are discussed regularly by our full Board of Directors and at Management Council meetings. In addition, our independent Directors are actively engaged in direct dialogue with key investors and other stakeholders on a variety of topics, including carbon strategy, policy engagement, human capital and executive compensation.

https://www.southerncompany.com/content/dam/southerncompany/pdfs/clean-energy/Net-zero-report.pdf

Southern Company does not always agree with or endorse all positions taken by the trade associations, groups and coalitions in which it is a member. As part of our governance to ensure policy alignment with net zero business objectives, we routinely assess our participation in trade associations, groups and coalitions that are active on climate issues. [...] Southern Company has put in place decision-making and oversight processes for political expenditures and all governmental relations activities. We place great importance on consistent dialogue with all our stakeholders, including customers, regulators, employees and investors. We are receptive to stakeholder concerns, and we are committed to transparency and proactive interactions with our stakeholders.

https://investor.southerncompany.com/esg/policy-engagement-and-advocacy/default.aspx

Southern Company believes it has a responsibility to our customers, communities and other stakeholders to participate in the public policy process, to provide information and expertise, and to foster enduring policies that are in the interest of our customers, communities, and other stakeholders. At the federal, state, and local levels, we are committed to being trusted sources of helpful information, expertise, and perspectives. As part of our advocacy efforts, Southern Company lobbies directly at the federal level through registered lobbyists and/or indirectly through trade groups, associations, or coalitions. Both our Board of Directors and management team play important roles in overseeing our political engagement activities. [...] When we join a trade association—and on an ongoing basis—Southern Company weighs the costs and benefits of membership and examines each group's policy alignment with the Company's business objectives, including the Company's net zero goal. Given the breadth of business issues on which these associations are engaged, we may not align with these groups on all policy positions. However, we believe we can best facilitate positive policy outcomes, including on climate change, through collaborative and constructive engagement. [...] 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. Given the breadth of business issues on which these associations are engaged, we do not always agree with or endorse all policy positions taken. Our engagement in these associations is guided by our commitment to our net zero goal and our alignment with the Paris Agreement, and we actively share those perspectives with the associations in which we are a member. [...] Both the Board of Directors and management play important roles in overseeing our political engagement activities. The Nominating, Governance and Corporate Responsibility Committee has primary oversight over the Company's political engagement activities. In addition, Southern Company's lobbying-related activities are reviewed at least annually by the full Board.

https://www.southerncompany.com/content/dam/southerncompany/sustainability/pdfs/Trade-Association-Climate-Engagement-Report.pdf

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]Southern Company's constructive engagement with policymakers allows us to deliver clean, safe, reliable, affordable, and resilient energy to our customers. We believe it is important to our business success and to meeting our business goals, including decarbonization, to communicate with policymakers about, and advocate for, the interests of our company, customers, employees, stakeholders and the communities that we serve. As part of our efforts, we engage directly and indirectly with lawmakers and regulators on a variety of issues, including climate-related issues.

Southern Company continually monitors policy positions of associations of which it is a member. Members of the Southern Company Management Council meet at least quarterly to review the public statements and positions of associations, assessing, among other things, whether the group is aligned with the Company's net zero goal. When a group is significantly misaligned with the policy positions that Southern Company supports for a net zero transition, we evaluate and determine whether to continue our membership.

CDP Questionnaire Response 2022

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]Southern Company's constructive engagement with policymakers allows us to deliver clean, safe, reliable, affordable, and resilient energy to our customers. We believe it is important to our business success and to meeting our business goals, including decarbonization, to communicate with policymakers about, and advocate for, the interests of our company, customers, employees, stakeholders and the communities that we serve. As part of our efforts, we engage directly and indirectly with lawmakers and regulators on a variety of issues, including climate-related issues.

CDP Questionnaire Response 2023