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
€1tn
Objectives
3,942
Governance
42%
Companies
80%
Voting: Coverage
123,988
Voting: Resolutions
17,669
Voting: Themes
43.5%
1Dimson, E., Karakaş, O. and Li, X. (2015). “Active Ownership,” published in The Review of Financial Studies, 28(12), 3225-3268. Past performance is not a reliable indicator of future returns.
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 H1 2020
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.
Focused on a range of key sustainability issues, including:
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.
Achieving the following SDG intensity
The intensity of each strategy’s focus on specific SDGs is shown below. The larger the SDG icon, the greater the number of engagement actions aligned with its delivery.
Source: Federated Hermes as at 30 June 2020. Please note: because one engagement action with a company can address numerous SDGs, the sum of SDG-aligned engagement activities shown above will exceed the total number of engagement actions for the period.
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.
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
that focus on or support the integration of sustainability and investment.
Our people are on boards or committees of
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
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