Our climate action plans
Federated Hermes Limited has published its Climate-related Financial Disclosures Report for 2022. This report highlights our progress in implementing the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) across the four pillars of the framework. We detail our governance structure, our strategy for managing climate risks and identifying opportunities, our risk management, including public policy advocacy and corporate engagement, and progress against our net zero interim targets with reporting on our financed emissions. For the first time we have also incorporated reporting on nature throughout the report, particularly in the Governance, Strategy and Risk Management sections, following the recent recommendations from the Taskforce on Nature-related Financial Disclosures (TNFD).
We have also enhanced our scenario analysis for public equity and credit investments and outline the expected impact of different climate scenarios on our investments.
Lastly, we continue to report on our financed emissions (Scope 1, Scope 2 and where possible Scope 3) and this year have expanded our reporting to include our direct lending and private equity investments.
Recognising there is much more work needed by governments, companies and investors to limit global average temperature warming to less than 1.5°C above preindustrial levels, Federated Hermes Limited will continue to leverage our engagement and proxy voting capabilities, in addition to our advocacy activities.
Climate-related Disclosures Report
Climate Action Plan
Approach to deforestation
The halting and reversing of tropical deforestation is essential if we are to avoid the consequences of severe climate change and biodiversity loss. As signatories of the commitment to Eliminating Commodity-Driven Deforestation, we have published our Deforestation Policy Statement which sets out how we intend to meet this commitment. Our Approach to Deforestation document describes the actions we have taken so far in our investment, corporate engagement, and public policy advocacy.
Deforestation Policy Statement
News and views from COP
The last decade has seen many climate change targets missed or watered down. New COP policy is likely to trigger a resurgence in momentum to meet the most important goals. Here, we list some of the milestones that are worth watching out for: