Provide an overview of how you ensure that your agreed-upon voting policy is adhered to, giving details of your approach when exceptions to the policy are made.
We report annually on proxy voting completed by our service provider in compliance with Mercy proxy voting guidelines (controlling) which incorporate approved standard Catholic voting guidelines used by the provider. This review is done on a monthly basis, allowing close tracking of adherence to policy. If the review determines an item was not voted in alignment with policy, the service provider is contacted for a detailed rationale. Annually, report on the audits of proxy voting guideline compliance is provided to the Social Responsibility Committee. In the event of emerging or new issues that are not addressed by either guidelines or in circumstances of decisions to vote against board member(s), those proxy voting decisions are approved by management as delegated in the proxy voting guidelines.
See proxy voting guidelines and results at https://www.mercyinvestmentservices.org/2020%20Mercy%20Investment%20Services%20Proxy%20Voting%20Guidelines_FINAL.pdf and https://www.mercyinvestmentservices.org/proxy-voting.aspx, respectively.