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Notice of exempt solicitation

We are writing to urge you to VOTE “FOR” PROPOSAL # 5 on the Oracle 2015 proxy card, which asks the company to set goals to increase renewable energy sourcing and/or production. Co-filed by Green Century Equity Fund, the shareholder proposal makes the following request:

Shareholders request Oracle Corporation senior management, with oversight from the Board of Directors, set company-wide quantitative targets by March 2016 to increase renewable energy sourcing and/or production

Rationale for a “Yes” Vote:

4. Oracle’s opposition statement fails to address the issues we raise and demonstrates the weakness of its approach

The momentum for renewable energy procurement is stronger than ever. Just last week leading companies like Starbucks, Nike, Goldman Sachs, and Johnson & Johnson pledged to source 100% of their energy needs from renewable sources. Companies are taking advantage of the economic benefits while simultaneously reducing their company’s environmental footprint. These companies aren’t waiting for international treaties or regulations, they’re seizing the opportunities now and positioning themselves to succeed in a low carbon economy.

Implementing the proposal would assure investors that the company is identifying opportunities related to renewable energy and energy use. Without public goals we believe shareholders are unable to assess whether the company is addressing risks and opportunities the company may face because of these factors. We are deeply concerned that the company is not taking even modest advantage of the financial, social and environmental opportunities that renewable energy presents to the company, its stakeholders, and its shareholders. For example, sourcing more renewable energy may reduce Oracle’s exposure to fluctuating energy prices and help move it closer to achieving its emission reduction goals. The company’s shift to increased cloud-based services may require more data capacity and lead to greater energy costs. By failing to examine renewable energy opportunities, we believe the company may be leaving money and value on the table.

The cost of renewable energy has fallen dramatically over the last decade and is projected to continue falling – the price of a solar panel has fallen almost 60% since 2011 1 . Even more promising, the falling cost of renewable energy is predicted to continue, ultimately reaching grid parity. In a March 2015 report, Deutsche Bank predicted solar will be the primary global energy source by 2030 – a tenfold increase from current installed capacity 2 . The renewable energy market is ripe with opportunities and poised for continued growth. By examining these options and setting quantitative goals Oracle may enjoy significant advantages associated with reduced exposure to volatile energy prices; high returns on carbon reduction savings; and strategic benefits associated with contributing positively to U.S. climate and energy security efforts.

Oracle is shifting many of its product offerings to the cloud meaning the company’s data needs are positioned to steadily grow. Oracle reported that revenue from its cloud offerings has grown 43% over the last four years and is a growing portion of the company’s total recurring revenue. These data needs translate into increased energy draws on its data centers and subsequently greater electricity costs. While Oracle has focused on efficiency at its data centers and servers– there is a limit to efficiency. Despite the company’s efficiency gains its absolute emissions increased 11% from 2013-2014. In order to truly address these growing energy needs the company needs to consider renewable energy opportunities. Not only does oracle have the opportunity to capture savings but with such a significant energy demand Oracle has the opportunity to shift the renewable landscape and make renewable energy even more scalable.

A closer look at Oracle’s operational footprint shows one of the company’s primary data centers is located in Austin, Texas, the largest wind producing state in the country. We believe the state’s renewable energy capacity also makes it one of the more attractive renewable energy markets in the United States, regularly competing with natural gas prices . Given this information, we believe Oracle has not fully explored opportunities to procure renewable energy at its Austin data center or in other key states where it operates . Oracle purchases renewable energy certificates for only 5400MW at its Austin Center, which is approximately .7% of the company’s electricity demand 3 .

Understanding the renewable energy landscape can be complex, but Oracle doesn’t have to start from the ground up, there are many resources available. Some companies have successfully worked with guiding organizations such as The...


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