Global Equity Screened ESG

A diversified strategy that aims to consistently outperform and help clients achieve their investment objectives without compromising their beliefs.

Reasons to invest

Strong foundation

Launched in October 2012, the Strategy builds on the core investment process of the Global Equity Strategy, which has its inception in December 2007.

Fundamental focus, systematic execution

We employ systematic analysis to identify companies with the most attractive combinations of fundamental characteristics.

Style agnostic

We believe analysing companies across a broad range of perspectives helps to generate positive returns in various market environments and defend against large swings in style.

ESG supports long-term returns

Companies managing their ESG risk have historically outperformed, while those that are improving can generate greater shareholder value in the future ¹.

Risk management

Proprietary risk management tools enable us to monitor and neutralise macroeconomic risks before they impact returns.


Our investment approach can be easily tailored to meet your specific risk, reward, ESG or ethical requirements.

ESG Investing: How Covid-19 accelerated the social awakening, by Federated Hermes, published November 2018

Louise Dudley

We have been working closely with clients since 2012 to understand their needs and provide solutions that meet their investment objectives without compromising their beliefs.

Louise Dudley, CFA
- Portfolio Manager, Global Equities

Why Global Equity Screened ESG?

The Strategy is aimed to generate consistent returns and to outperform its benchmark in any market environment. Consistency is achieved by investing in a diverse range of companies with strong, long-term fundamentals and ESG characteristics. This helps defend against swings in style and means clients are not required to time their entry point to benefit from a particular factor tailwind.

Assessment of a company’s ESG characteristics is a vital part of our investment approach. We use ESG research in proprietary models and in discussion with our voting and engagement experts, EOS at Federated Hermes. We believe companies less exposed to ESG risks will outperform over the long term. Learn more about our approach to ESG Integration.

Our investment approach enables us to create bespoke solutions based on a range of different factors, including regional biases, risk and return objectives, sustainability, ESG and clients’ own ethical beliefs. We work closely with clients to help them create specific parameters and understand the associated risk implications.

How we invest

Pragmatism over perfection
Systematic analysis
Risk management

Investment philosophy

Our investment philosophy can be encapsulated in four words: pragmatism, sustainability, responsibility and longevity.

We take a pragmatic view of the investment universe to identify stocks with the most attractive combinations of fundamental characteristics. We look for companies with sustainable business models and competitive advantages. In addition, it is important that companies behave responsibly, which leads us to companies that are well governed and treat their responsibilities to society and the environment seriously – such companies are more likely to avoid negative surprises. Choosing companies that demonstrate a combination of these characteristics allows us to hold stocks over the long term: it is only in the long term that a company can fulfil its potential.


Investment process

We use a systematic approach, our Alpha Model, which seeks to identify companies with an attractive combination of fundamental and ESG characteristics. This is combined with a disciplined subjective analysis that interrogates the model’s efficacy and assesses the ESG characteristics of a company to identify potential weaknesses not captured by the model. The Axioma Optimiser combines stocks in an optimal portfolio to favour stock-specific risks and diversify top-down exposures.

We incorporate exclusions based on clients’ specific requirements, and we exclude companies:

  • Identified by EOS as being involved in the manufacture and distribution of controversial weapons and cluster munitions.
  • On EOS’s Controversial Companies Report with a High Severity rating for environmental and social risks and where engagement is deemed unfeasible
  • Generating >10% of revenue from gambling, tobacco, logging, nuclear energy or armaments
  • Companies with material high-carbon exposure

We assess macro risks and stress-test the portfolio using MultiFRAME. We also perform a subjective ‘sense check’ at the company level to validate the data, assess unquantifiable factors and interrogate ESG before constructing the final portfolio.

Stewardship is an essential part of our investment approach. In managing the portfolio, we seek constructive and positive dialogues with each company’s board and management team, encouraging them to mitigate any negative impacts and to adopt practices, initiatives and strategies that deliver tangible and positive outcomes.


6093, 6195, 6203
Geir Lode

Geir Lode

Head of Global Equities, Federated Hermes Limited

Louise Dudley

Louise Dudley, CFA

Portfolio Manager, Global Equities, Federated Hermes Limited

Lewis Grant

Lewis Grant

Senior Portfolio Manager, Global Equities, Federated Hermes Limited

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Product information

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Our Purpose

To deliver Sustainable Wealth Creation

Like all our investment capabilities, Federated Hermes Global Equity Low Carbon aims to deliver Sustainable Wealth Creation: the generation of wealth through investments that enrich investors, society and the environment over the long term.


Our business provides three equally powerful pathways to achieving this aim. Federated Hermes Global Equity Low Carbon features in the Active ESG route.

Active ESG on blue background

Responsible, active investing for long-term performance.

Federated Hermes Global Equity Screened ESG
Sustainable on green background

Thematic and values-based approaches for sustainable outcomes.

Impact on orange background

Mission-led investment strategies to create positive impact.