Climate change hub

Federated Hermes Limited has published its Climate and Nature-related Financial Disclosures Report for 2024. This report highlights our progress in implementing the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”) across the four pillars of the framework. We detail how climate-related risks and opportunities are incorporated into our governance, strategy, and risk management, accompanied by relevant metrics and targets and how we are responding to the rising expectations of our clients and changing regulatory environment.

This year, in line with our commitment made at COP26 to strive to eliminate commodity-driven deforestation from our portfolios, we include our commodity-driven deforestation risk assessment.

We also present scenario analysis for public equity, credit, real estate, and infrastructure investments, highlighting the expected impact of different climate pathways on our portfolios.

As an Early Adopter of the Taskforce on Nature-related Financial Disclosures (“TNFD”), we also continue to incorporate reporting on nature throughout the report, aligned with the TNFD recommendations. Additionally, we report on our financed emissions (Scope 1, Scope 2 and, where material, Scope 3).

Recognising the urgent need for collective action to limit global average temperature warming to 1.5°C in accordance with the Paris Agreement, we will continue to leverage our engagement and proxy voting capabilities, where local law and applicable requirements allow, in addition to our advocacy activities.