Three routes to Sustainable Wealth Creation
An increase in sustainable funds has helped to satisfy rising demand for investments that deliver profits with principles, but, makes navigating the landscape harder for investors. In their pursuit of Sustainable Wealth Creation, which pathway should they take?
We have reclassified our product range under three distinct and clearly labelled categories or pathways.
The Active ESG pathway offers a range of products that best serve investor needs. Along the way, they offer a variety of differing styles: high conviction, diversified, thematic and contrarian.
What they all have in common is their best-practice integration of deep-dive ESG analysis. This includes insights from the broad range of engagement activity with policymakers and companies undertaken by EOS at Federated Hermes, our specialist stewardship services team. In this, we see ourselves as partners, working alongside companies to drive positive change.
Our sustainable pathway offers exposure to the best-in-class companies that are driving the transition to a zero-carbon world, or innovative companies with the potential to affect change through their own operations or their products and services.
Alongside a clear financial objective, strategies in this pathway have additional ESG-focused objectives, such as delivering a lower environmental footprint than the benchmark across carbon, water and waste, for instance.
From companies addressing social inequality, to resource management and circular economy, or to those adapting their business to align with a low-carbon world. We invest and engage over the long-term to drive real, scalable change.
What defines a sustainable company?
Impact strategies generate (or have the potential to generate) a positive societal or environmental impact. Our mission-led investment strategies seek to deliver real world change in the following ways:
We invest in companies that deliver intentional and additional impact, one that is quantifiable, and which we can monitor and report on. We use effective engagement as a catalyst to progress companies towards making a material difference to the world in which we live.
Our focus on Sustainable Wealth Creation aims to ensure that all our investment capabilities are guided by this philosophy and driven by a fusion of four characteristics. These are: