EOS at Federated Hermes is a leading stewardship service provider. Our 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. We believe this is essential to build a global financial system that delivers improved long-term returns for investors, as well as better, more sustainable outcomes for society.
With companies that form part of the public equity and corporate fixed income holdings of our clients to seek positive change for our clients, the companies and the societies in which they operate.
Engaging with legislators, regulators, industry bodies and other standard-setters to shape capital markets and the environment in which companies and investors can operate more sustainably.
We work with our clients to develop their responsible ownership policies, drawing on our extensive experience and expertise to advance their stewardship strategies.
We make recommendations that are, where practicable, engagement-led and involve communicating with company management and boards around the vote. This ensures that our rationale is understood by the company and that the recommendations are well-informed and lead to change where necessary.
We help our clients to fulfil their stewardship obligations by monitoring their portfolios to regularly identify companies that are in breach of, or near to breaching, international norms and conventions.
Relationships and access – Companies understand that, EOS is working on behalf of pension funds and other large, institutional investors, so it has significant leverage – representing assets under advice of US$1 trillion as of 31 March 2020. The team’s skills, experience, languages, connections and cultural understanding equip them with the gravitas and credibility to access and maintain constructive relationships with company boards.
Client focus – EOS pools the priorities of like-minded investors and through consultation and feedback, this helps determine the priorities of its Engagement Plan.
Tailored engagement – EOS develops engagement strategies specific to each company informed by its deep understanding across sectors, themes and markets. It seeks to address the most material ESG risks and opportunities through long-term, constructive, objectives-driven and continuous dialogue at the board and senior executive level which has proven to be effective over time.