Harvard CCSR Annual Report 2024-2025 Overview

Harvard CCSR Annual Report 2024-2025 Overview

The Harvard Corporation Committee on Shareholder Responsibility (CCSR) Annual Report for 2024-2025 outlines the committee's activities regarding shareholder responsibility and corporate governance. It details the development of proxy voting guidelines on critical issues such as human rights, labor practices, and data privacy. The report highlights the committee's recommendations on shareholder resolutions from major companies like Apple, Meta, and Alphabet. This report serves as a resource for investors and stakeholders interested in corporate social responsibility and ethical investing practices.

Key Points

  • Details the CCSR's proxy voting guidelines on human rights and labor practices.
  • Summarizes shareholder resolutions considered for Apple, Meta, and Alphabet in 2024-2025.
  • Highlights the CCSR's engagement with Harvard Management Company on sustainable investing.
  • Outlines key developments in corporate governance and shareholder responsibility for the academic year.
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Harvard University
Corporation Committee on Shareholder Responsibility
Annual Report 2024-2025
CCSR Members
Mariano-Florentino Cuéllar , Chair
Timothy Barakett
Diana Nelson
Tracy Palandjian
Shirley Tilghman
Secretaries to the Committee:
Jeff Caldwell, Jillian Dubman
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Corporation Committee on Shareholder Responsibility
Annual Report 2024-2025
Introduction
Since 1972, Harvard University has maintained a pair of committees that were created to
play a central role in the University’s consideration of matters of shareholder responsibility related
to Harvard’s investments in publicly traded companies: the Corporation Committee on Shareholder
Responsibility (CCSR) and the Advisory Committee on Shareholder Responsibility (ACSR).
The CCSR consists of several members of the Harvard Corporation. Acting on behalf of the
President and Fellows, it oversees the consistent application of University policy with respect to
shareholder responsibility, actively considering new circumstances or information that may suggest
the need for changes in policy or practice.
The ACSR is a twelve-member committee made up of Harvard faculty, students, and
alumni. The ACSR is responsible for advising the CCSR on aspects of how Harvard should fulfill
its fiduciary duty as a shareholder. This advice primarily takes two forms: first, the ACSR develops
and edits guidelines on topics relevant to investors when addressing shareholder resolutions
(proxies), to be shared both with Harvard’s external investment managers and the investing public;
and second, the ACSR shares advice on specific shareholder resolutions directed at companies held
directly in Harvard’s portfolio. At the direction of the CCSR, the ACSR also may occasionally be
asked to consider other aspects of Harvard’s shareholder responsibilities.
While the University and Harvard Management Company (HMC) recognize that its external
managers may not necessarily share Harvard’s view on every issue, HMC expects these external
managers to have a robust approach to stewardship and to make the kind of informed voting
decisions on shareholder resolutions that Harvard seeks to achieve steered by the guidelines
approved by the CCSR on the recommendation of the ACSR. HMC considers an external
manager’s stewardship practices related to these guidelines as one of several relevant considerations
in assessing overall performance. The University also makes the guidelines publicly available,
including through reports such as this one, so that other interested investors can make use of them
as they see fit. Developing publicly available proxy guidelines is part of a larger set of activities
intended to intensify Harvard’s engagement with its external investment managers, with companies,
and with other investors on issues of corporate social responsibility.
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HMC has come to rely increasingly on pooled investments and commingled funds typically
managed by outside investment firms, rather than directly owning stock in individual companies, as
the means to achieve wide exposure to public equity markets. However, HMC has continued to hold
stock in individual companies directly, so the committees review individual shareholder resolutions
at these relatively few public companies, and the composition of the individually held companies
varies from year to year. After thoughtful deliberation, the ACSR makes recommendations to the
CCSR, which is responsible for final decisions about how the University should vote on those
resolutions.
The University approaches proxy voting by considering each resolution on a case-by-case
basis in light of the ACSR’s discussions, the committee precedent on similar issues, and any relevant
proxy voting guidelines. The ACSR’s analysis of proxy issues is supported by background material
from Glass Lewis, a firm that provides investors with independent research and data related to
environmental and social issues and corporate responsibility concerns raised through the proxy
process.
This report includes a description of the work of the ACSR and the CCSR during the past
academic year regarding both the adoption of subject-specific proxy guidelines and the voting of
proxies in public companies in which the University directly held shares. It also touches on HMC’s
investor engagement activities over the course of the year.
Overview of Key Developments in 2024-2025
The ACSR devoted the bulk of its discussions during the 2024-2025 academic year to
developing and proposing proxy voting guidelines in four subject-matter areas. Drafts of new
guidelines developed by the ACSR during the 2024-2025 academic year were forwarded to the
CCSR for review and approval. The CCSR approved the following four guidelines, which are
published on the University’s shareholder responsibility website.
• Human Rights: Conflict-Affected High Risk Areas
• Human Rights: Living Wage Disclosure
• Labor and Workforce: Report for Freedom of Association and Collective Bargaining
• Technology and Media: Data Privacy
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FAQs of Harvard CCSR Annual Report 2024-2025 Overview

What are the main topics covered in the CCSR Annual Report?
The CCSR Annual Report covers several key topics including the development of proxy voting guidelines on human rights, labor practices, and data privacy. It also discusses the committee's engagement with external investment managers and the recommendations made on shareholder resolutions from companies like Apple, Meta, and Alphabet. The report emphasizes the importance of corporate governance and ethical investing, providing insights into how Harvard approaches shareholder responsibility.
How does the CCSR influence shareholder resolutions?
The CCSR influences shareholder resolutions by reviewing and making recommendations on how Harvard should vote on various proposals. This process involves the Advisory Committee on Shareholder Responsibility (ACSR), which analyzes specific resolutions and provides insights based on established guidelines. The CCSR's decisions reflect a commitment to ethical investing and corporate social responsibility, ensuring that Harvard's investments align with its values.
What guidelines did the CCSR approve in 2024-2025?
In the 2024-2025 academic year, the CCSR approved several proxy voting guidelines focusing on critical areas such as human rights in conflict-affected areas, living wage disclosures, labor rights, and data privacy. These guidelines aim to enhance corporate accountability and transparency, guiding external managers in their voting decisions. The approved guidelines are made publicly available to inform other investors and promote responsible investing practices.
Which companies' shareholder resolutions were reviewed by the CCSR?
The CCSR reviewed shareholder resolutions from major companies including Apple, Meta Platforms, and Alphabet during the 2024-2025 academic year. These resolutions addressed various issues such as ethical AI practices, child safety measures, and corporate governance. The outcomes of these reviews reflect Harvard's commitment to shareholder responsibility and its engagement with corporate social responsibility initiatives.
What is the role of the ACSR in the CCSR process?
The Advisory Committee on Shareholder Responsibility (ACSR) plays a crucial role in the CCSR process by advising on how Harvard should fulfill its fiduciary duties as a shareholder. The ACSR evaluates specific shareholder resolutions, develops proxy voting guidelines, and provides recommendations based on thorough discussions and analyses. This collaborative effort ensures that Harvard's investment strategies align with its ethical standards and shareholder responsibilities.

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