Sustainability in action
Evidence of our integrity in targeting Sustainable Wealth Creation.
We invest and engage with conviction and focus on sustainability for the long term. Achieving this is the result of sustained, focused effort over many years.
But what does this require on a day-to-day basis? Here we take a granular look at the short-term activity that compounds towards positive outcomes for investors, society and the environment.
The power of engagement
Returns
7.1%
Assets
$1.45tn
Objectives
1,041
Governance
27%
Companies
81%
Voting: Coverage
128,101
Voting: Resolutions
22,716
Voting: Themes
134
Source: Federated Hermes as at 31 December 2023.
Creating impact through the SDGs
Our SDG Engagement Equity and SDG High Yield Credit capabilities seek outperformance through impact. Through engagement, they focus on helping companies improve to support delivery of the Sustainable Development Goals (SDGs).
SDG-driven engagement in 2023
SDG Engagement Equity
SDG Engagement High Yield Credit
Collaborating for change
As engagers, we aim to catalyse initiatives, create and strengthen relationships, heighten ambitions and accelerate progress on achieving sustainable outcomes for all stakeholders. In doing so, we recognise that companies ultimately deliver change supporting the delivery of the SDGs.
Women in STEM
Sustainable land use
Employee wellbeing
Circular economy
Carbon-emissions reduction
Corporate governance
Human-capital management
Recycling and waste reduction
Cobalt supply chains
Renewable energy
Human rights
Water use
Collaborating for change
As engagers, we aim to catalyse initiatives, create and strengthen relationships, heighten ambitions and accelerate progress on achieving sustainable outcomes for all stakeholders. In doing so, we recognise that companies ultimately deliver change supporting the delivery of the SDGs.
Source: Federated Hermes as at 31 December 2023.
Advocating progressive policies
Our involvement in investment and sustainability organisations enables us to help shape the policy architecture governing markets in a way that supports the delivery of Sustainable Wealth Creation.
As a business, we are a member of
76
that focus on or support the integration of sustainability and investment.
Our people are on boards or committees of
21
of them, including…
Credit risk and ratings
Academic networks
Plastics
Water risk in agricultural supply chains
Global policy
Palm oil
Labour practices in agriculture supply chains
4
Sustainable finance
Policy
Investment aligned with the Paris Agreement
Property
Saker Nusseibeh, CBE, our CEO, Federated Hermes Limited, is in
advisory roles:
- Impact Investing Institute Advisory Council
- Value Reporting Foundation Council
- FCA-PRA Climate Financial Risk Forum
- United Nations Environmental Programme Financial Initiative (UNEP-FI) Steering Committee
- The 300 Club
- UN Business and Human Security Initiative Advisory Board
EOS at Federated Hermes, our stewardship team, is an active contributor to policy formation. In 2023, it conducted:
responses (or their
proactive equivalents).
Seeking sustainable finance
Through actions in industry groups and consultations with regulators, we aim to contribute to an investment and financial system that works for all stakeholders.
Defining best-practice ESG
Our definitions
Want to know more about our delivery of Sustainable Wealth Creation?
