Political Contributions

Political Contributions

Why we engage.

Engagement in the political process is critical to our success. Our future growth depends on forward-thinking legislation and regulation that makes society safer and more energy efficient and improves public infrastructure. For example, nearly 50% of our products are linked to energy efficiency. In fact, if our existing technologies were widely adopted today, energy demand in the U.S. could be reduced by 20-25%.

When formulating policies and drafting laws that improve safety, security, energy efficiency and infrastructure, policymakers need to be fully informed about the commercial availability of products and services that can deliver real benefits and improvements. Politicians and regulators risk missing opportunities to fully exploit technology or causing unintended consequences when making decisions without the benefit of information from the commercial sector. Our lobbying activities are designed to educate policymakers. We consistently advocate the need for technologically neutral solutions that allow robust competition in the private sector to deliver the intended policy results.

Below is a list of some of our top legislative and regulatory priorities:

  • Policies and regulations that encourage the use of public utilities to deploy demand response technologies and smart grids to reduce electricity consumption;
  • Automotive emission reduction policies that facilitate the use of more fuel efficient cars and reduce the use of global warming and ozone depleting refrigerants;
  • Investment in the air traffic control system to make flying both safer and more energy efficient;
  • Commercial and residential building, permitting and construction codes that facilitate safer, more energy efficient construction and renovation;
  • High-priority Department of Defense programs that support our national security; and
  • Tax, trade and other policies to ensure that our nation can compete on a level playing field around the globe.

How we engage.

We have developed a strong team of government relations professionals based in Washington, DC that drive our lobbying programs and initiatives. Our government relations organization is led by a Senior Vice President, Global Government Relations who reports directly to the Company's Senior Vice President and General Counsel (General Counsel). Members of the government relations organization work from a global network of offices.

We strive to always engage responsibly in the political process and to ensure that our participation is fully consistent with all applicable laws and regulations, our principles of good governance, and our high standards of ethical conduct.

Management and Board Oversight of Lobbying Activities

The law department oversees our lobbying activities. The Senior Vice President, Global Government Relations reports to the General Counsel and also works closely with the Vice President, Global Compliance whose organization ensures compliance with our political spending policy. The General Counsel, Senior Vice President, Global Government Relations and Vice President, Global Compliance meet regularly with the Chairman and Chief Executive Officer and his leadership team about legislative, regulatory and political developments.

With respect to Board of Directors oversight, our public policy efforts, including all lobbying activities, political contributions and payments to trade associations and other tax-exempt organizations, is the responsibility of the Corporate Governance and Responsibility Committee (CGRC), which consists entirely of independent, non-employee directors. Each year the CGRC receives an annual report on the Company's policies and practices regarding political contributions. The CGRC's oversight of our political activities ensures compliance with applicable law and alignment with our policies and our Code of Business Conduct. In addition, each year the Senior Vice President, Global Government Relations reports to the full Board of Directors on our global lobbying and government relations program.

Political Contributions.

We have not made any political contributions using corporate funds since at least 2009 and have no intention of making such political contributions in the near future. Even before 2009, any such contributions were extremely rare and for de minimis amounts of less than $5,000. Were we to use corporate funds for political contributions, such contributions would be made without regard to the personal partisan preferences of Company officers and executives.

We use the term "political contributions" broadly to mean:

  • Candidates;
  • Political parties;
  • "527 groups" or "527 organizations" such as governors associations and super PACs; and
  • Grass root campaigns intended to directly or indirectly influence the outcome of any ballot measures.

With respect to tax-exempt organizations, such as 501(c)(4)s, where funds may be used for political purposes, we have made only one contribution since 2009. In December 2012, as disclosed in our publicly available filings required under the Lobbying Disclosure Act, we contributed $1 million to the Fix the Debt Coalition, a non-partisan 501(c)(4) organization which seeks to educate and mobilize Americans on the need for a comprehensive plan to fix the United States' long-term debt and deficits but have made no further contributions. The decision to contribute funds to this organization was discussed with the Board of Directors.

Any use of corporate funds for political expenditures or ballot measures would require the prior approval of the Company's General Counsel. These policies on political contributions are imbedded in our Corporate Governance Guidelines and Code of Business Conduct.

Trade Associations.

We are a member of a number of trade associations and other tax-exempt or similar organizations that may engage in political activity. The trade associations to which we belong represent a broad range of perspectives on public policy issues, not all of which we support. Our membership in these organizations is intended to accomplish a wide of range of objectives:

  • Support our commercial growth initiatives where we believe engaging in coalitions with other industry participants is likely to enable growth of end markets;
  • Promote development of our internal technical and regulatory expertise as well as enable us to share with other companies our technical and regulatory expertise; and
  • Assist in political advocacy and outreach, particularly related to public education efforts regarding major issues common to our industries.

Membership in trade associations requires that we pay regular dues. Some trade associations utilize a portion of membership dues for non-deductible state and federal lobbying and political expenditures.

Political Action Committee.

As noted above, we have not made any political contributions using corporate funds since at least 2009 and have no intention of making such political contributions in the near future. Any and all contributions we make in support of federal and state political candidates is through the non-partisan Honeywell International Political Action Committee (HIPAC), which is funded exclusively through voluntary contributions from eligible U.S.-based employees, which are not reimbursed by Honeywell. Decisions regarding use of HIPAC funds are made by a HIPAC Executive Committee, consisting of senior managers representing Corporate and each of the Company's operating segments, which meets quarterly to discuss how HIPAC's political disbursements can promote the interests of the Company and the economic growth of the U.S. Political disbursements made through HIPAC are made without regard to the personal partisan preferences of Company officers and executives. HIPAC spending decisions are made solely to promote the interests of Honeywell and are based on the following criteria: Honeywell's employee, supplier and/or customer base in legislators' districts/states; support for Honeywell's initiatives; leadership positions in the U.S. Congress or state legislatures; and, leadership positions on legislative committees that are relevant to Honeywell's businesses. Political contributions are never made with regard for the private political preferences of our executives.

The Company conducts periodic audits of HIPAC practices and procedures, including the retention of outside auditors.

How to get more information.

Federal disclosures regarding our lobbying activities are publicly available. Our public disclosure includes, among other things, our aggregate annual spending on trade association membership dues spent on lobbying or political expenditures as well as HIPAC contributions to political candidates. Starting in 2011, information regarding these topics has been disclosed on this website, and the Company will maintain an archive of this information, as well as information subsequently made available on this website. Disclosures from prior periods can be accessed via the links below.

  • With respect to federal lobbying activity, we maintain and file Lobbying Disclosure Act Registration and Reports (Form LD-2) with the Secretary of the U.S. Senate and the Clerk of the U.S. House of Representatives, which reflect the particular bills and issues on which individual lobbyists had activity, as well as the total lobbying expenses incurred during each calendar quarter. Click here for Forms LD-2 for 2014 and here for 2015, each of which includes the aggregate amount of the company's spending on lobbying by calendar quarter, including trade association memberships. Reports for prior periods may be found at http://www.senate.gov/legislative/Public_Disclosure/LDA_reports.htm.
  • Honeywell and its registered federal lobbyists must also file semi-annual reports (Form LD-203) providing, among other things, HIPAC disbursements and personal, direct contributions to federal candidates. Click here for Forms LD-203 for 2014, here for 2015. Reports for prior periods may be found at http://www.senate.gov/legislative/Public_Disclosure/LDA_reports.htm.
  • Monthly reports filed with the Federal Election Commission (FEC) for prior periods can be accessed on the FEC's website www.fec.gov. [To access an archive of Honeywell's FEC reports, go to www.fec.gov > select "Campaign Finance Disclosure Portal" > select "Candidate and Committee Viewer" > enter "Honeywell International Political Action Committee" in the Search box > select "Filings" from the Default Tab options and click "Get Listing" > click the ID number (C00096156) link to view monthly filings.]