EOS at Federated Hermes wins ICGN Excellence in Stewardship Award

EOS at Federated Hermes has won the Excellence in Stewardship Award at the International Corporate Governance Network’s 2024 Achievement Awards, for its pioneering systemic engagement approach to reducing methane emissions. This work has been led by Diana Glassman with support from engagers across the EOS regional teams.

EOS has engaged meaningfully on reducing operational methane emissions in the oil and gas sector since at least 2018, three years before COP26 raised awareness of its importance at the end of 2021. The goal was to help drive down absolute oil and gas sector Scope 1 methane emissions by 60-75% by 2030.

This is necessary to achieve the Paris Agreement goal of limiting global warming to a 1.5°C temperature rise, as cutting methane emissions is the single most important lever the world has to reduce global heating in the short term. EOS also sought disclosure from companies of their performance in alignment with the Oil and Gas Methane Partnership (OGMP) 2.0 reporting framework, despite the absence of regulatory mandates.  

To help accelerate methane emission reductions, EOS conceived and implemented an innovative system-wide approach. This involved engagement with midstream operators, utilities, and banks, as well as direct engagement with oil and gas producers. The aim was to persuade the producers that it was in their own financial and strategic interest to set ambitious methane intensity and methane reduction targets.

This systemic approach was supported by EOS’s public policy work advocating for the adoption of methane best practices in global standards and regulation. EOS also incorporated methane reduction efforts into relevant collaborative engagement initiatives.

The highly regarded International Corporate Governance Network is led by the world’s most influential investors who work to advance corporate governance standards and investor stewardship worldwide. The Excellence in Stewardship Award recognises individuals, organisations, and collaborative initiatives whose actions have contributed significantly to making effective stewardship a reality in the markets in which they operate.