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Mercy

PRI reporting framework 2020

You are in Direct - Listed Equity Active Ownership » (Proxy) voting and shareholder resolutions

(Proxy) voting and shareholder resolutions

LEA 12. Typical approach to (proxy) voting decisions

12.1. Indicate how you typically make your (proxy) voting decisions.

Approach

Based on

12.3. Additional information.[Optional]

Mercy uses ISS which developed faith-based proxy voting guidelines for Catholic and other Christian religious institutions that are consistent with the objectives of socially responsible shareholders as well as the teachings of Catholicism and Christianity as a whole. On matters of social and environmental impact, the guidelines seek to reflect a broad consensus of the faith-based socially responsible investing community. Generally, ISS takes their frame of reference policies and proposals promulgated by the Catholic Bishops' Pastoral on economics, the Socially Responsible Investment Guidelines adopted by the Bishops, and the policies developed by members of the Interfaith Center on Corporate Responsibility (ICCR).


LEA 13. Percentage of voting recommendations reviewed (Not Applicable)


LEA 14. Securities lending programme

14.1. Does your organisation have a securities lending programme?

14.3. Indicate how the issue of voting is addressed in your securities lending programme.

14.4. Additional information. [Optional]


LEA 15. Informing companies of the rationale of abstaining/voting against management

15.1. Indicate the proportion of votes participated in within the reporting year in which where you or the service providers acting on your behalf raised concerns with companies ahead of voting.

15.3. Additional information. [Optional]


LEA 16. Informing companies of the rationale of abstaining/voting against management

16.1. Indicate the proportion of votes where you, and/or the service provider(s) acting on your behalf, communicated the rationale to companies for abstaining or voting against management recommendations. Indicate this as a percentage out of all eligible votes.

16.3. In cases where your organisation does communicate the rationale for abstaining or voting against management recommendations, indicate whether this rationale is made public.

16.4. Additional information. [Optional]


LEA 17. Percentage of (proxy) votes cast

17.1. For listed equities in which you or your service provider have the mandate to issue (proxy) voting instructions, indicate the percentage of votes cast during the reporting year.

Votes cast (to the nearest 1%)

100 %

Specify the basis on which this percentage is calculated

17.3. Additional information. [Optional]


LEA 18. Proportion of ballot items that were for/against/abstentions

18.1. Indicate whether you track the voting instructions that you or your service provider on your behalf have issued.

18.2. Of the voting instructions that you and/or third parties on your behalf have issued, indicate the proportion of ballot items that were:

Voting instructions
Breakdown as percentage of votes cast
For (supporting) management recommendations
65 %
Against (opposing) management recommendations
35 %
Abstentions
0 %
100%

18.3. In cases where your organisation voted against management recommendations, indicate the percentage of companies which you have engaged.

0

18.4. Additional information. [Optional]

Mercy Investment Team does not engage with the companies directly when ISS voted against management recommendations.


LEA 19. Proportion of ballot items that were for/against/abstentions

19.1. Indicate whether your organisation has a formal escalation strategy following unsuccessful voting.

19.3. Additional information. [Optional]


LEA 20. Shareholder resolutions

20.1. Indicate whether your organisation, directly or through a service provider, filed or co-filed any ESG shareholder resolutions during the reporting year.

20.7. Additional information. [Optional]


LEA 21. Examples of (proxy) voting activities

21.1. Provide examples of the (proxy) voting activities that your organisation and/or service provider carried out during the reporting year.

ESG Topic
Human rights
Conducted by
Objectives

Individual shareholder filed a precatory proposal requesting company to implement procedures to prevent or recommend against investments in companies that contribute to genocide or other crimes against humanity. 

Scope and Process

ISS vote FOR this proposal is warranted for the following reasons:* Shareholders would benefit from careful monitoring of Franklin Resource's investment choices, given the inherent or potential reputational risks related to investments in high-risk markets;* Adoption of the proposal would result in more robust communication regarding the fund's policies and oversight mechanisms related to the incorporation of non-financial risk management factors into investment decision-making processes.

Outcomes
ESG Topic
Diversity
Conducted by
Objectives

Votes AGAINST incumbent nominees Stephen Zelnak Jr., Allan Merrill, Elizabeth Acton, Laurent Alpert, Brian Beazer, Peter (Pete) Leemputte, Peter Orser, Norma Provencio and Danny Shepherd are warranted for lack of diversity on the board. 

Scope and Process

Catholic Advisory Services believes that it is in the best interests of shareholders for management to give serious consideration to issues concerning board diversity. In cases where the board lacks at least one female and one racially diverse director, and the board is not at least 30 percent diverse, Catholic Advisory Services recommends that shareholders vote against the entire board, with the exception of new nominees.

Outcomes
ESG Topic
Executive Remuneration
Conducted by
Objectives

ISS voted against proposal by management to ratify executive officer's compensation.

Scope and Process

A vote AGAINST this proposal is warranted due to the following concerns: A majority of equity awards to the CEO are not tied to performance-contingent pay elements; and high CEO pay relative to company performance compared to the company’s peers.

Outcomes
ESG Topic
General ESG
Conducted by
Objectives

A vote FOR the director nominees for Sotheby's is warranted as a majority of the board comprises independent directors, the key board committees are independent and there is both gender and racial diversity on the board. 

Scope and Process

The company has adopted a majority vote standard (of shares cast) for the election of directors with a plurality carve-out for contested elections, and has a director resignation policy in its bylaws/charter.

Outcomes

21.2. Additional information. [Optional]


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