Hermes EOS has actively engaged with some of the world’s largest emitters of greenhouse gasses, asking for development of more sustainable long-term business models, reductions in greenhouse gas emissions and improved governance and disclosure.
With the UN Climate Change Conference of the Parties over the next two weeks, we revisit our case study on the progress we have made over 2018-2019 in pursuit of climate-related engagement objectives, first published by the Principles for Responsible Investment in September this year.
Case studies are shown to demonstrate engagement, EOS does not make any investment recommendations and the information is not an offer to buy or sell securities.
Shareholder engagement and its effects on target companies
The award-winning study ‘ESG shareholder engagement and downside risk’, which uses engagement data from Hermes EOS, reveals that companies that are successfully engaged by EOS exhibit a lower risk profile, particularly when environmental issues are tackled.
Hon Hai has demonstrated concrete improvements in its corporate governance, as well as its approach to labour relations and wider investor disclosure, since Hermes EOS began engagement in 2010.
