CLOSE

We permit the publication of our auditors’ report, provided the report is published in full only and is accompanied by the full financial statements to which our auditors’ report relates, and is only published on an access-controlled page on your website https://www.hermes-investment.com, to enable users to verify that an auditors’ report by independent accountants has been commissioned by the directors and issued. Such permission to publish is given by us without accepting or assuming any responsibility or liability to any third party users save where we have agreed terms with them in writing.

Our consent is given on condition that before any third party accesses our auditors’ report via the webpage they first document their agreement to the following terms of access to our report via a click-through webpage with an 'I accept' button. The terms to be included on your website are as follows:

I accept and agree for and on behalf of myself and the Trust I represent (each a "recipient") that:

  1. PricewaterhouseCoopers LLP (“PwC”) accepts no liability (including liability for negligence) to each recipient in relation to PwC’s report. The report is provided to each recipient for information purposes only. If a recipient relies on PwC’s report, it does so entirely at its own risk;
  2. No recipient will bring a claim against PwC which relates to the access to the report by a recipient;
  3. Neither PwC’s report, nor information obtained from it, may be made available to anyone else without PwC’s prior written consent, except where required by law or regulation; and
  4. PwC’s report was prepared with Hermes Property Unit Trust's interests in mind. It was not prepared with any recipient's interests in mind or for its use. PwC’s report is not a substitute for any enquiries that a recipient should make. The financial statements are as at 25 March 2017, and thus PwC’s auditors’ report is based on historical information. Any projection of such information or PwC’s opinion thereon to future periods is subject to the risk that changes may occur after the reports are issued and the description of controls may no longer accurately portray the system of internal control. For these reasons, such projection of information to future periods would be inappropriate.
  5. PwC will be entitled to the benefit of and to enforce these terms.
I accept
CLOSE

1. Select your country

  • United Kingdom
  • Austria
  • Australia
  • Belgium
  • Denmark
  • Finland
  • France
  • Germany
  • Iceland
  • Ireland
  • Italy
  • Luxembourg
  • Netherlands
  • Norway
  • Singapore
  • Spain
  • Sweden
  • Switzerland
  • USA
  • Other

2. Select your investor type

  • Financial Advisor
  • Discretionary Investment Manager
  • Wealth Manager
  • Family Office
  • Institutional Investor
  • Investment Consultant
  • Charity, Foundation & Endowment Investor
  • Retail Investor
  • Press
  • None of the above

3. Accept our terms and conditions

By clicking Proceed I confirm I have read the important information and agree to the terms of use.

Proceed

The Hermes Investment Management website uses cookies to remember your preferences and help us improve the site.
By proceeding, you agree to cookies being placed on your computer.
Read our privacy and cookie policy.

Looking into 2017

Our key engagement themes

Home / EOS Blog / Hermes EOS blog: Looking into 2017 – Our key engagement themes in the new year

Remuneration
Following the strong votes against proposed pay packages at a number of companies in 2016, remuneration will again be in the spotlight in 2017. This is particularly the case in the UK where companies will face a new round of binding shareholder votes on pay policies as part of the three-year voting cycle on this. Following much thinking and consultation with key stakeholders, we launched new remuneration guidance in the second half of 2016, setting out expectations to help steer companies in the right direction ahead of the voting season. We also provided a response to the corporate governance inquiry by the UK Parliament’s Business, Energy and Industrial Strategy (BEIS) Committee.

We were delighted that our remuneration principles featured in the government’s green paper on Corporate Governance Reform, which was published in November. Subsequently, we provided evidence on remuneration and board composition to the BEIS committee. All this could pave the way for reform in the new year.

Stewardship Codes
Stewardship codes and guidelines were introduced in a number of markets in 2016 – such as Brazil, Hong Kong, Singapore and Taiwan – as efforts to implement existing ones, like those in Japan and the UK, intensified. As such, more investors will have the task of effectively implementing stewardship across the globe. In 2017, the long-awaited Shareholder Rights Directive could be passed in Europe, giving stewardship additional momentum. We have been closely involved in the development of the codes in Brazil and Singapore and look forward to contributing to the progress of stewardship practice and culture in these and other markets in 2017.

Board composition
In meeting their obligations as active and responsible, investors will continue to focus on getting the right people on corporate boards, exercising their key rights as shareholders. As part of this, we promote board diversity in its broadest sense. On behalf of our clients, we will assess the composition of boards, question how they discharge their roles and assess their effectiveness by engaging directly with executive and non-executive directors. We welcome the proposals in the UK government’s green paper and the Parker Review, which recognise that there continues to be a need for more diversity and different perspectives in many boardrooms.

Human rights
Supply chain management and human rights will once again be among our key engagement subjects in 2017 following the introduction of legislation on modern slavery in the US and the UK in 2015.

With prominent hacking incidents emerging in recent years, we will continue to push companies to put in place prevention and mitigation processes in relation to cyber risk.

As part of our collaboration with the Access to Nutrition index, we will also step up our engagement with companies on malnutrition and obesity.

Climate change
Building on the 2015 Paris Agreement, our environmental engagements with companies exposed to climate change will continue to focus on the resilience of their portfolios to this risk and the results of stress-testing and emissions reduction commitments. After the success of the shareholder proposals filed – often with our help – in 2015 and 2016, our efforts will concentrate on companies facing material climate change risks. The recommendations by the Task Force on Climate-related Financial Disclosures released yesterday by the Financial Stability Board will aid this.

By using the link above you will be leaving the Hermes website. Hermes has no control over the content on third-party websites.

 

Share this post:
Hans-Christoph Hirt Dr Hans-Christoph Hirt is an executive director and board member at Hermes EOS and as Head of the organisation responsible for the sustainable success of the business. He leads and oversees the global engagement programme and the quality of the services Hermes EOS provides to its clients around the world. Hans also leads some high-profile stewardship activities, including priority engagements with major companies in Asia and Germany, as well as interactions with key regulators and organisations. Prior to joining Hermes EOS, Hans worked with international law firm Ashurst. He is the author of numerous publications on corporate governance and law, responsible investment and stewardship. Currently, he is a member of the Steering Committee of the UN PRI Investor Engagement Clearinghouse and the Shareholder Responsibilities Committee of the International Corporate Governance Network. In 2015, he joined the Institutional Investor Council in Malaysia. Hans is a UK-qualified lawyer, holds degrees in Business Administration from universities in Germany and the UK, the ACCA qualification and a PhD from the London School of Economics (LSE). He continues to be involved in academia as a Corporate Governance Fellow at the LSE’s Financial Markets Group and a Teaching Fellow at University College London. Hans speaks French, German and Mandarin.
Read all articles by Hans-Christoph Hirt

Find posts by author

  • Alex Knox, ACA
  • Bill Mackenzie
  • Bruce Duguid
  • Christine Chow
  • Colin Melvin
  • Darren Brady
  • Dominic Burke
  • Emma Hunt
  • Hans-Christoph Hirt
  • Ilana Elbim
  • Jaime Gornsztejn
  • Justine Lutterodt
  • Leon Kamhi
  • Louise Dudley
  • Lui Goldie
  • Mark Sherlock, CFA
  • Maxine Wille
  • Michael Russell, CFA
  • Michael Vaughan
  • Michael Viehs
  • Natacha Dimitrijevic
  • Nina Röhrbein
  • Philip Nell
  • Rochelle Giugni
  • Roland Bosch
  • Sachi Suzuki
  • Saker Nusseibeh
  • Tatiana Bosteels
  • Tim Goodman
  • Tommaso Mancuso
  • Yasmin Chowdhury

Find posts by category

  • environment
  • eos
  • governance
  • social
  • strategy