Academy
An educational hub about sustainability and investment developed by our experts
Welcome to the Federated Hermes Academy – an educational hub developed by our experts for our clients and prospects seeking to understand responsible investing and how the integration of environmental, social and governance (ESG) and stewardship can help create long-term wealth sustainably.
From the basics of ESG and stewardship to impact investing and advocacy, we will equip you with the knowledge needed to navigate the landscape of acronyms and approaches used across the investment industry and discern genuine integration from greenwashing.
Sustainability seminars
Our sustainability seminars are CPD accredited and one-hour long. Please note our seminars can be tailored to your specific requirements. If you’d like bespoke sustainability and investment training, please contact your sales representative. Otherwise, please secure your place by registering for the modules below.
Access all of our past Academy sessions from our successful Seasons One and Two, run throughout 2021 and 2022.
Module 1
The purpose of investment: ESG essentials
Since our beginnings, our purpose has always been the same: to deliver Sustainable Wealth Creation – that is, by generating wealth through investments that enriches investors, society and the environment over the long term. As investing sustainably is pushed further into the mainstream against the backdrop of the global coronavirus pandemic and the impending climate crisis, it is more important than ever to understand the purpose of investment and the often-confusing terminology being used across the industry. In this seminar, we will wade through the noise and present our sustainability and investment lexicon, spanning definitions of ESG factors to stewardship. We will also examine the different styles of responsible investing.
- A clear articulation of the purpose of the investment industry and the role of investing with sustainability and stewardship factors in fulfilling this purpose
- A clear perspective on ESG and sustainability-related terminology
- Understand the range and evolution of ESG investing approaches
Module 2
Stewardship: a force for change
Today, EOS at Federated Hermes is one of the largest stewardship resources globally, with more than £938bn in assets under advice. In this seminar, we will explore the purpose of stewardship, its importance as the investment industry’s social licence to operate, and its essential role in lowering risk, delivering sustainable outcomes and strengthening long-term returns. We will also examine evidence that demonstrates how stewardship pays off and present best practice approaches that are being used across different asset classes.
- Explain the role of stewardship in investment
- Understand the different approaches to carry out stewardship across asset classes
- Demonstrate stewardship in practice and the benefits achieved
Module 3
A practical guide to integrating ESG and engagement insight
As a pioneer of ESG investing and engagement, we act on evidence that our investment approach supports long-term outperformance and change. In this seminar, we will highlight how extensive research demonstrates the link between the integration of ESG and stewardship and risk and returns. We will explain the different integration approaches available making a distinction between thematic and mainstream investment. We will also review best practice approaches in both public and private markets, and describe what investors should look for when judging the efficacy and credibility of an investment manager’s integration approach.
- Understand the why of ESG and stewardship integration
- Understand best practice in the integration of ESG and engagement insights in public and private markets
- Provide the ability to discern between greenwashing and credible ESG and stewardship integration
Module 4
Delivering positive outcomes: impact investing
By integrating ESG analysis and stewardship into the way we invest, and launching the world’s first equity and bond strategies driven by engagement on the Sustainable Development Goals (SDGs)1, we have always been at the vanguard of responsible investment. In doing so, we have delivered sustainable outcomes for investors since day one. In this seminar, we will examine the fundamentals of impact investing, how impact can be measured, and how companies and investors can contribute to the SDGs. We will also demonstrate how investment and stewardship can lead to the delivery of tangible social outcomes alongside outstanding investment performance.
- Describe impact investing, the SDGs and their importance to investors
- Review the range of approaches currently available to measure impact and SDG performance
- Understand how impact investing and stewardship can deliver sustainable outcomes in practice
Module 5
Advocating for a better future for investors and society
In this seminar, we will examine how asset managers can constructively engage with regulators and policymakers globally to ensure the whole economic system – and the investment industry in particular – works in the interests of investors and society as a whole. As background, we will provide a brief history of advocacy in the investment industry as well as the key changes that have occurred as a result of advocacy efforts. We will address governance, environmental, social and other market failures that may prevent the financial system from operating in the best interests of its ultimate asset owners. We will also explain how pension funds and other institutional investors can play a role in addressing the major ESG issues including climate change and inequality in different countries and sectors. Our Responsibility Office, which develops and leads the implementation of our advocacy positions, will provide a range of examples of its work.
- A history of advocacy in the investment industry
- An overview of today’s pressing public policy issues
- Understand how the investment industry can help advocate for change in the industry
¹ “A pioneer of responsible investing,” published by Federated Hermes in February 2020.
Module 2
The net-zero imperative
While 90% of the global economy has now pledged net zero carbon emissions over the next 30 to 50 years, ambitions still fall short of the goals laid out in Paris Climate Accords. Even after 2021’s COP26 climate change conference, updated government pledges would put the world on a 1.8°C post-industrial warming trajectory, according to estimates from the International Energy Agency.
Although the exact route to net zero remains unclear, the imperative for investors is not: only a massive combined effort by all stakeholders can achieve a 1.5 °C pathway.
Learning outcomes:
- Understand the backdrop to the climate crisis
- Explore what needs to be done to avert catastrophic global warming
- Learn about the role of active management in mitigating CO2 emissions
Module 3
All together now: Why social inclusion matters
Social inclusion is the foundation for shared prosperity. In its absence, inequality thrives and poverty gains a foothold.
With a world subject to massive social transformation, rising urbanisation, climate change, seismic shifts in technology and transformative demographics, the question of inclusion sits at the heart of everything we do as responsible investors.
Learning outcomes:
- Understand how social exclusion undermines prosperity
- Explore how social inclusion has the potential to transform global GDP
- Learn what investors can do to bring about change.
Module 4
A design for life: Building better through sustainable real estate
According to the World Economic Forum, the real estate sector consumes over 40% of global energy each year, buildings are responsible for 20% of global greenhouse gas emissions, and the construction industry consumes c.40% of the world’s raw materials annually.¹
Against this backdrop, it’s little wonder that sustainable real estate is considered a critical element in achieving momentum towards the world’s net zero ambitions.
Learning outcomes:
- Understand the carbon challenge facing the real estate sector
- Explore paths to remediating the industry’s carbon footprint
- Learn how investors in real estate can engage with stakeholders and advocate for more sustainable approaches
¹ World Economic Forum: ‘Environmental Sustainability Principles for the Real Estate Industry’.
Understanding the basics of sustainability and investment
Que signifie ESG ?
- Environnement : changement climatique, gestion des ressources naturelles, pollution, déchets et économie circulaire.
- Social : droits de l’homme, droits des peuples autochtones, travail des enfants et esclavages, corruption, inclusion et diversité, santé et sécurité, éthique, comportement et culture.
- Gouvernance : composition des conseils d’administration, planification de la succession, rémunération des dirigeants, droits et protections des actionnaires minoritaires et engagement actionnarial des investisseurs.
Les éléments énumérés ci-dessus pour chaque facteur ne sont pas exhaustifs. Les exemples cités pour chaque facteur le sont à des fins d’illustration.
Qu’est-ce que l’actionnariat actif ?
Exercer son droit d’influence, à titre d’actionnaire d’une société, pour encourager cette société, ses actifs et d’autres parties prenantes à préserver les intérêts à long terme des investisseurs finaux. L’action, concrètement, consiste à ouvrir un dialogue portant sur des objectifs qui visent à réaliser un changement positif et durable de la mission, de la gouvernance, des opérations stratégiques et de l’impact de l’entreprise sur l’environnement et la société.
Qu’est-ce que l’engagement actionnarial ?
Le rôle au titre duquel les gérants d’investissement exercent les droits, voire l’obligation, des parties prenantes financières pour encourager les sociétés ou les actifs à poursuivre l’objectif de création de patrimoine durable pour les investisseurs.
Les motivations de l’engagement actionnarial
- Pression descendante : principes mondiaux ; réglementations et codes
- Pression ascendante : preuves du risque et du rendement ; durabilité et impact social positif ; et convictions d’investissement des clients/bénéficiaires
Pourquoi intégrer les critères ESG et l’engagement actionnarial ?
- Réputation
- Risque
- Rendement
- Impact plus vaste
Cette intégration confère au secteur son autorisation sociale d’exercer ses activités
Le phénomène ESG : bien plus qu’une simple contribution positive ?
Les analyses l’ont prouvé :
- des normes ESG saines réduisent le coût du capital
- des pratiques ESG solides permettent d’améliorer la performance opérationnelle
- la performance des cours des actions, les spreads de crédit et l’immobilier sont influencés positivement par les bonnes pratiques ESG et RSE
Qu’est-ce que la mobilisation ?
Chercher activement à contribuer à des réformes des politiques publiques dans l’intérêt des investisseurs et de la société au sens large en s’engageant auprès des décideurs politiques, des autorités de réglementation et des organismes professionnels dans différents domaines. Citons à cet égard le système financier, l’investissement, la gouvernance d’entreprise, l’objectif d’entreprise, le changement climatique, l’inégalité et l’inclusion.
Que sont les Objectifs de développement durable (ODD) ?
Une feuille de route pour changer le monde de manière significative – en mettant fin à la pauvreté mondiale, en préservant la planète et en visant la prospérité pour tous – d’ici à 2030.
Il existe 17 ODD, qui contiennent 169 cibles et 230 indicateurs.
En investissant et en nous engageant, nous pouvons soutenir la réalisation des ODD.
Qu’est-ce que l’investissement d’impact ?
Cibler délibérément des entreprises qui peuvent générer des résultats sociaux ou environnementaux positifs parallèlement à des gains financiers. Les investisseurs d’impact visent principalement des investissements permettant d’élaborer des solutions qui contribuent positivement à la réalisation des 17 ODD.
Sustained thinking: our ESG knowledge hub
Our knowledge hub brings together the latest insights from our experts and thought leaders on sustainable investing.
The Circular
Keeping you in the sustainability loop
From thought leadership to press features, we capture our recent sustainability-related insights in our quarterly newsletter The Circular.
Our definitions
What do we mean by ESG leaders, active ownership and SDG investing? We provide definitions that we stand by.
