Key elements of responsible investing

How does your manager stack up?

Badge Of Succes
We understand the expertise and attitude required to achieve positive outcomes from responsible investing. Responsible investing cannot be ‘bolted on’ or be the domain of just one small part of the business. See below to learn how out integrated approach works in practice.

ESG cannot be ‘bolted on’ to an investment process or be the domain of one analyst in a team. It must be an area of expertise for all. Knowing how to gather, analyse and integrate sustainability data as an essential part of research is fundamental in forming a complete view of an asset’s long-term potential.

What defines a leading ESG investor?

Mountains In The Drop

Our capabilities

For clients seeking sustainable and impact-oriented solutions, we offer a broad range of capabilities – from active ESG integration, to sustainable, impact and other forms of thematic investing.

Our specialists in these areas of investing are driven by the conviction that one can mitigate ESG and related risks and capture the investment opportunities arising from them to deliver broader outperformance for clients over the long-term.

Our sustainable and impact investment teams seek to deliver on two equally important and self-reinforcing objectives – strong financial performance for investors, coupled with positive long-term societal outcomes.

Our strategies

Responsible investment strategies cover a full range of asset classes – including private markets capabilities – each with their own investment style and stewardship approach.

These products are high active share, integrate ESG and related considerations and engagement insights in investment decision-making and deploy best-practice stewardship. 

Tailored, specialist strategies designed to meet specific SRI, ESG and impact-related objectives are also available.

Many of our teams perform their own fundamental ESG research through proprietary tools (such as ESG Dashboard, QESG score, ESG Portfolio Monitor, Corporate Governance Tool and Carbon Tool) and have dedicated resources.

Our engagement

EOS, a leading stewardship service provider, is an important part of Federated Hermes Limited. 

Its engagement activities enable long-term institutional investors to be more active owners of their assets, through dialogue with companies on environmental, social and governance issues. 

These capabilities are informed by decades of specialist experience, innovation and a drive to lead the evolution of investing through a sustainability lens and stewardship. 

True engagement takes time, expertise and dedication. Many asset managers talk a good game on engagement; few do it well.

The key elements of responsible investing

Research
Materiality
Engagement and advocacy
Corporate philosophy
Pedigree and history
Integration

Our Responsibility Office is tasked with monitoring and overseeing every investment team’s approach to integrating ESG and engagement insights into their investment decisions and the monitoring of investees. This helps to maintain our focus on enduring, responsible wealth creation.

Hands holding a light

Responsibility in action

Looking for authenticity in responsible investing? Examine our evidence.
White tree

Measurements and tools

What analytical tools and insights are needed to be a leading responsible investor?

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