Responsibility in action

Evidence of our track record on engagement, voting and advocacy

Hands holding a light bulb and a movie smack

True engagement and advocacy takes time, expertise and dedication. Many asset managers talk a good game; few do it well. What does it require on a day-to-day basis to achieve and sustain integrity in stewardship?

Here we take a granular look at the short-term activity that compounds towards positive outcomes for our stakeholders.

The power of engagement

Returns

7.1%

Engagement success can support outperformance. Research shows that companies undergoing positive change can generate an additional 7.1% in additional annualised returns.1

Assets

$1.45tn

Through our stewardship team, EOS at Federated Hermes Limited, we have over $1.45tn in assets under advice.

Objectives

1,041

We engaged with 1,041 companies in 2023 and made 128,101 proposal recommendations.

Governance

27%

of topics engaged in 2023 related to theme of governance.

Companies

81%

We take a long-term view and have engaged with 81% of our companies for five years or more.

Voting: Coverage

128,101

In 2023 we made voting recommendations at 12,963 meetings on 128,101 resolutions.

Voting: Resolutions

22,716

In 2023, we recommended voting against 22,716 proposed resolutions.

Voting: Themes

134

Companies where engagements were with the CEO or chair.

Source: Federated Hermes as at 31 December 2023.

1Dimson, E., Karakaş, O. and Li, X. (2015). “Active Ownership,” published in The Review of Financial Studies, 28(12), 3225-3268. Past performance is not a reliable indicator of future returns.

Creating impact through the SDGs

Our SDG Engagement Equity and SDG High Yield Credit capabilities seek outperformance through impact. Through engagement, they focus on helping companies improve to support delivery of the Sustainable Development Goals (SDGs).

SDG-driven engagement in 2023

SDG Engagement Equity

0
SDG engagement actions with…
0 %
of portfolio companies engaged

SDG Engagement High Yield Credit

0
SDG engagement actions with…
0 %
of portfolio companies engaged

Collaborating for change

As engagers, we aim to catalyse initiatives, create and strengthen relationships, heighten ambitions and accelerate progress on achieving sustainable outcomes for all stakeholders. In doing so, we recognise that companies ultimately deliver change supporting the delivery of the SDGs.

Focused on a range of key sustainability issues, including:

Women in STEM

Sustainable land use

Employee wellbeing

Circular economy

Carbon-emissions reduction

Corporate governance

Human-capital management

Recycling and waste reduction

Cobalt supply chains

Renewable energy

Human rights

Water use

Collaborating for change

As engagers, we aim to catalyse initiatives, create and strengthen relationships, heighten ambitions and accelerate progress on achieving sustainable outcomes for all stakeholders. In doing so, we recognise that companies ultimately deliver change supporting the delivery of the SDGs.

Source: Federated Hermes as at 31 December 2023.

Advocating progressive policies

Our involvement in investment and sustainability organisations enables us to help shape the policy architecture governing markets in a way that supports the delivery of enduring, responsible wealth creation.

Seeking to do business the right way

Through actions in industry groups and consultations with regulators, we aim to contribute to an investment and financial system that works for all stakeholders.

Badge big

Key elements of responsible investing

Which analytical tools and disciplines separate the best from the rest?

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Our definitions

Seeking clarity on responsible investing? We provide the definitions that we stand by.

Want to know more about our focus on enduring, responsible wealth creation?