At the international business of Federated Hermes, we believe that stewardship is vital in achieving our purpose: generating Sustainable Wealth Creation.
EOS’s constructive engagements with corporate boards and executives on environmental, social and governance and strategic issues enable investors to be more active owners of their equity and fixed-income assets, supporting stronger financial performance and better outcomes for society. With almost half of its engagements now more than nine years in duration, EOS is committed to realising positive, enduring change.
EOS spearheads collaborative engagements with investors worldwide and its expertise has been called upon to help develop stewardship codes in developed and emerging markets.
Known as an industry leader in working with investors to change companies for good, from within, EOS continues to evolve best-practice stewardship.
EOS: at a glance
Source: Federated Hermes as at 31 December 2020.
Our stewardship services
- Making recommendations that are, where practicable, engagement-led
- Involves communicating with company management and boards around the vote
- Takes account of regional differences, cultural norms and the relevant stage of the stewardship journey
- Monitoring clients’ portfolios to regularly identify companies that are in breach of, or near to breaching, international norms and conventions
- Engaging with legislators, regulators, industry bodies and other standard-setters
- Helping to shape capital markets and the environment in which companies and investors can operate more sustainably
- Joining forces with like-minded investors to make an impact, for example through Climate Action 100+
- Helping our clients to meet stewardship regulations
- Working with our clients to develop their responsible ownership policies
- Drawing on our extensive expertise and proprietary tools to advance their stewardship strategies
The EOS advantage
Meet our stewardship experts
Evolution of EOS
Armed with a long-standing history of active ownership, we founded EOS in 2004. Its history is synonymous with the adoption and growth of responsible investment.
Agents of change
Key EOS engagements over the past 16 years
2008 – 2011
Germany’s first proxy fight
Our multi-year engagement with Infineon culminated in a 2010 proxy fight with the computer chipmaker – the first such battle at a blue-chip firm in Germany. Following an 88.6% fall in its stock price over 11 years, we led shareholder opposition to the nomination of a long-standing non-executive director as supervisory board chair. This contributed to his exit a year later and the election of a new independent chair.
Persistent AGM pressure
Seeking a greener horizon
We also participated in another collaborative engagement with a group of institutional investors, which sought an alignment of BP’s accounting assumptions with the goals of the Paris Agreement. We raised questions on behalf of our clients and as the co-lead for Climate Action 100+ at BP’s annual general meeting, asking the company to reconsider its assumptions for Paris-consistent investment and for it to review its long-term oil-and-gas price assumptions in light of the coronavirus pandemic. We also indicated our support for calls that BP ensure its accounts take the Paris Agreement fully into consideration.
Following these requests, BP recently reduced the long-term oil-and-gas price assumptions used in its financial statements, incurring substantial estimated impairments of $13-17.5bn, equivalent to 13%-17% of its 2019 net assets. This move not only offers shareholders greater visibility about the firm’s climate-related risks, but also gives investors greater confidence that BP can deliver on its Paris Agreement-related commitments.
2010 – present
Engaging for workers’ wellbeing
2010 – present
Catalysing renewal at the top
The future of stewardship
Active stewardship must be at the heart of investment management firms’ activity and purpose.