Following the publication of the UK’s updated Stewardship Code in 2020, formal independent assessments by the FRC were established to evaluate which firms were meeting the requirements to become a signatory. The assessments require signatories to compile a detailed annual report on their stewardship policies, processes, and activities and outcomes for a 12-month reporting period and include asset managers, asset owners and stewardship providers. Both Federated Hermes Limited and EOS submitted successful reports covering the 2021 period.
The reports included high-level updates on efforts being made towards effective and outcome-driven stewardship, collaborative engagements and responses to market-wide and systemic risks, as well as the engagement, voting recommendations, public policy, screening and advisory work carried out by EOS on behalf of its clients.
Federated Hermes has a strong track record of stewardship and advocacy, having played an integral role in the development of and later becoming a founding signatory of the UN Principles for Responsible Investment in 2006. It acts as chair for the UK chapter of the Partnership for Carbon Accounting Financials (PCAF) as well as a member of the FCA-PRA Climate Financial Risk Forum. The business engaged extensively with the FRC during its revision process of the UK Stewardship Code, helping to shape a rigorous and ambitious Code demonstrative of the UK as leaders in the field.
Leon Kamhi, Head of Responsibility and EOS at Federated Hermes Limited said: « At Federated Hermes we believe the investment industry can create long term sustainable wealth for investors by being a powerful force for good, building a fairer, more equitable world for all – and that active stewardship and engagement is a key component of achieving this.
« Stewardship is a central component to our business, and so we are extremely pleased with this outcome and hope that the Code’s challenging reporting requirements will help facilitate a fundamental change across the asset management industry ».
The full reports can be found here: