INSIGHTS

The Circular As the economy looks to recover, people are coming around to the idea that sustainable investing could be part of the solution. We've summed up our recent insights on environmental, social and governance (ESG) investing to bring you the latest edition of The Circular. 13/07/2020

Tackling the climate crisis Climate change is the defining challenge of our time and we are at a defining moment. 30/06/2020 - Eoin Murray

The sustainability of sustainability: green finance during the pandemic The rise in capital-market activities described as sustainable over the last two years has been elevated and widespread. 19/06/2020 - Mitch Reznick

Prosperity and preservation: the aim of active ownership At the international business of Federated Hermes, we place both stewardship and high-active-share investing at the heart of what we do. 18/06/2020 - Saker Nusseibeh, CBE

Responsibility Report 2020 Welcome to our inaugural Responsibility Report – an annual publication that provides clear information about our responsible business practices, our approach to responsible investing and our firm-wide advocacy activities. 09/06/2020

Greta’s expectations: we must all be stewards now! The new economic model needs to be premised on stewardship in the broadest sense of the word. 08/06/2020 - Eoin Murray

Federated Hermes marks World Environment Day Over the past year, there has been a notable shift in awareness off the burgeoning climate emergency and our troubled relationship with nature and biodiversity 05/06/2020

Gemologist: can we adapt to a new climate normal? Climate change will test our ability to avoid mortal danger more than ever before. Humanity’s ability to adapt, something we have excelled at, must again come to the fore. 20/05/2020 - Gary Greenberg

Gender equality: investor engagement moves the needle Marking International Women's Day, we discuss engaging for gender equality in the corporate world. 09/03/2020

The Circular Edition 1, 2020: keeping you in the sustainability loop Our key analysis and insights about sustainable investment. 20/02/2020

A pioneer of responsible investing Our story as a leader in responsible investment has been decades in the making. 03/02/2020

The Circular Q3 2019: keeping you in the sustainability loop Our key analysis and insights about sustainable investment. 06/11/2019

AI: brave new worlds While AI has the potential to create efficiencies and boost economic output, it also poses ethical and legal challenges. 14/10/2019 - Dr Christine Chow

Counting the business cost of deforestation The risk of brand damage and consumer boycotts from poor environmental corporate practice has never been higher. Some companies are changing their ways, others could do more. 23/09/2019 - Will Pomroy

The Circular Q2 2019: keeping you in the sustainability loop Our key analysis and insights about sustainable investment. 29/07/2019

Pricing ESG risk in sovereign credit Building on our studies showing a strong relationship between the environmental, social and governance performance... 01/07/2019 - Mitch Reznick

The Circular: keeping you in the sustainability loop Our key analysis and insights about sustainable investment. 14/05/2019

Integrating responsible principles Chief Executive Saker Nusseibeh and his senior team discuss how Hermes’ goal is to help people invest better, retire better and create a better society for all. 24/01/2019 - Saker Nusseibeh, CBE

Hermes SDG Engagement Equity: progress made in our first year Impact investing and the Sustainable Development Goals (SDGs) have gained more prominence in the investment industry. Both appeal to investors who are not only sustainability-minded but also performance-driven: they recognise that positive social and environmental outcomes and long-term investment rewards are compatible. 24/01/2019 - Hamish Galpin

Impactful intent: the 2018 Hermes Real Estate RPI report We act as stewards of the assets we manage, ensuring that our responsible property investment (RPI) principles are embedded in our real-estate investment strategies. 17/12/2018

Impact Report, Q3 2018 In our Q3 Impact Report, we explore next-generation sequencing and explain how two portfolio holdings in this field are generating positive impacts that support the delivery of the third United Nations Sustainable Development Goal – Good Health and Well-Being. 20/11/2018

The US yield curve as a predictor of recession: should we trust it this time? The shape of the US Treasury yield curve generally contains useful information about future developments in the real economy. In particular, when the Treasury yield curve inverts – that is, when short-term rates exceed long-term yields – a recession usually follows in the next 12 months. Historically, the yield curve has been a very accurate forecasting tool: a curve inversion has preceded each of the last seven recessions in the US. The Treasury yield curve flattened significantly in 2017, and last month, the spread between 10-year yields and two-year yields narrowed to about 50bps. It is therefore possible that the spread could turn negative at some point this year. As such, it is unsurprising that market observers have become nervous about the possibility of an economic slowdown. But given the current environment of loose monetary policy, to what extent should we trust the US yield curve as a harbinger of a recession? 13/02/2018 - Silvia Dall’Angelo

The Why Question At Hermes we have long held the belief that the financial system should operate in the interests of its ultimate asset owners, not its various agents. We also recognise that the decisions financial practitioners make on how to invest beneficiaries’ money entrusted to them shapes the society they will live in. Further, we argue that the differentiation between ‘shareholders’ and ‘stakeholders’ which is often produced to justify the status quo is inherently false. Today, the majority of shares are owned (through savings and pensions) by the very people who make up what we think of as societal stakeholders. That the majority of these same stakeholders perceive the ‘system’ to have failed them is becoming increasingly clear around the developed world and has been noted by many, most recently here by the Prime Minister. 06/03/2017 - Saker Nusseibeh, CBE