The CCSR determines how HMC will cast its proxy votes related to environmental and social proxy proposals. The Advisory Committee on Shareholder Responsibility (“ACSR”) submits recommendations to the CCSR regarding how HMC should vote, relying on a rich set of precedent to help inform those recommendations. During the 2017 proxy season, the ACSR utilized Proxy Voting Guidelines to inform its recommendations with regard to voting on select environmental and social issues for which the committees’ body of precedent provides a clear indication of a voting preference.
HMC determines how to cast votes related to governance. HMC has a Proxy Voting Policy for governance-related proposals and integrated that policy into HMC's automated research and proxy voting system. This system helps ensure that HMC votes proxies in a more consistent manner.