In this latest edition of our quarterly Spectrum report, experts from Federated Hermes consider the question of aluminium. The lightweight metal will play a crucial role in the energy transition but will need to address its own carbon footprint first.
Aluminium production is a highly polluting process which contributes 2% of global carbon emissions.
The metal has tremendous potential to aid the transition towards clean energy but demand looks set to outstrip supply in coming decades.
Technological innovation and increased recycling has the potential to reduce the carbon footprint of aluminium producers but more needs to be done to encourage companies to adopt ‘cleaner’ practices.
The views and opinions contained herein are those of the author and may not necessarily represent views expressed or reflected in other communications. This does not constitute a solicitation or offer to any person to buy or sell any related securities or financial instruments
Deputy Head of Corporate Credit Research, Federated Hermes Limited
Anna joined in 2017 as a credit analyst covering basic materials and, in June 2021, became Deputy Head of Corporate Credit Research. Prior to joining the firm, she worked at JPMorgan for over four years as part of the credit risk department, where she was responsible for covering the telecoms, media & technology (TMT) industries, and had previously covered the natural resources sector and Nordic financial institutions. Anna holds a BSc (Hons) in Mathematics with Statistics from the University of Bristol and holds the Certificate in ESG Investing from the CFA UK.
Jake joined in August 2020 as an engagement manager for the Federated Hermes SDG Engagement High Yield Credit Fund. He engages portfolio companies on a wide spectrum of ESG and SDG-related issues and opportunities, with particular focus in the basic industry, telecommunications and real estate sectors. Previously, Jake worked at the Principles for Responsible Investment (PRI). The PRI is the leading proponent of responsible investment globally, with over 3,000 members responsible for managing combined assets of US$103 trillion. He worked on initiatives for integrating and including ESG issues in investment decision making. Jake previously worked as a sustainability consultant for Eco-Age where he advised clients in mining, retail and sports entertainment sectors on energy use, circular economy, product traceability and labour standards. Jake has also worked at the UK Environment Agency as an airborne remote sensing specialist. Jake has a BSc in Environmental Science from the University of Nottingham and is a CFA charterholder.
Martin joined as a senior analyst on the European Equities team in March 2013 and is now lead portfolio manager of the Sustainable Global Equity strategy, and co-portfolio manager of the Impact Opportunities strategy. Prior to joining, he was an investment director at Scottish Widows Investment Partnership. Martin joined SWIP as a graduate and spent eight years there, with spells investing in UK, US and Japanese equities. Martin graduated from the University of St Andrews with an MA in Economics & Modern History and is a CFA charterholder. In 2015, Martin featured in Financial News’s ‘40 Under 40 Rising Stars of Asset Management’, an editorial selection of the brightest up-and-coming people in the industry.
CFA, Deputy Portfolio Manager, Asia ex-Japan, Federated Hermes Limited
Sandy joined in July 2013 as a senior analyst responsible for idea generation for the Asia ex-Japan strategy; she became deputy portfolio manager of the strategy in July 2014. She joined from Investec Asset Management, where she was part of a two-person team dedicated to managing the Investec Asia ex-Japan Equity Fund. Sandy was previously an analyst for the Emerging Markets team between 2009 and 2011. She holds an MSc in Quantitative Finance from the Cass Business School and a BSc in Economics from University College London. Sandy is a CFA charterholder and is a native Mandarin speaker.
Climate Change High Yield Credit strategy, interim report 2022
In this inaugural report, we delve into what makes the Federated Hermes Climate Change High Yield Credit strategy unique. As well as introducing our process and team, the report provides an overview of our proprietary Climate Change Impact (CCI) score, complete with portfolio examples to illustrate the scoring system in practice.
At Federated Hermes we believe the investment industry can be a powerful force for good, building a fairer, more equitable world for all – and that active ownership and engagement is the best way to achieve this. In this, our second annual Stewardship Report, we provide an update on our efforts towards effective and outcomes-driven stewardship.