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.
- Benefitting people and the planet: we seek to deliver into two self-reinforcing objectives – strong financial performance for investors and positive climate impacts, through decarbonisation, that contribute to the low carbon transition.
- Investment expertise: since 2004, our team’s principal members have delivered attractive high yield credit returns through relative value investing across the capital structures of companies worldwide.
- Engagement strength: our dedicated engagers, supported by EOS at Federated Hermes, a leading global stewardship team, seek positive climate action.
- Measuring climate impact: our proprietary scoring framework (outlined in more detail in a later section of this report) allows us to assess a company’s current and expected contribution to decarbonisation and the transition to net zero by 2050.
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.