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STEWARDSHIP

Hermes EOS anticipates a world where the power of effecting change through engagement with companies is front of mind for all owners. That is because, for us, the link between these topics and long-term value for companies and investors is clear.

Our vision is to contribute to a more sustainable form of capitalism by creating the world’s most effective stewardship platform.

Hans-Christoph Hirt

Head of Hermes EOS

Environmental

We seek relevant environmental indicators and encourage companies to manage their environmental footprint, set appropriate targets and disclose progress. We want to hold companies to account for the way they manage natural resources and work towards a sustainable low-carbon economy.

Social and Ethical

We work to create long-term sustainable economies by improving human capital management and supply chains, raise health and safety standards, stamp out bribery and corruption and engage on labour and community relations, including disputes with unions.

Governance

We promote transparency and high standards of accountability at companies worldwide. We seek reassurance that companies have an appropriate board structure, and that board members have the right skills, a diverse background and sufficient independence.

Strategy, risk and communication

Stewardship is not just good for the environment and society. We want organisations to understand that it is good for business. We aim to embed sustainability in business strategy and change corporate culture for the better.

Specialist thinking that adds value

We offer clients access to a wide range of specialist investment teams with £36 billion assets under management.1 In Hermes EOS, we have one of the industry’s leading engagement resource, advising on £359 billion of assets.

We concentrate on areas where our expertise can add most value for our investors, whether through specialist skill or accessing unique investment opportunities.

This is reflected in our capabilities – our public markets proficiency includes high active share equities, specialist credit and multi asset while our private markets expertise includes real estate, infrastructure, private equity and private debt.

A fast-growing and stable business

We were founded in 1983 as the in-house manager for the BT Pension Scheme (BTPS). Today, thanks largely to our reputation as a socially-conscious investment firm, we’re now proud to be the investment partner of choice for 604 clients in 32 different locations across the world.2

Federated Investors, a leading US investment manager with $437 billion assets under management, owns a majority stake in Hermes.

BTPS retains a minority stake and this relationship offers an expert global platform as both firms share a strong commitment to delivering client-centric investment returns responsibly.

Specialist thinking that adds value

Hermes EOS, founded in 2004, is a world leader in stewardship services helping clients to meet their legal obligations for active stewardship in order to create long-term value for beneficiaries. Hermes EOS represents £359.0/€403.1/$468.2 billion of assets under advice (AuA)1 invested in more than 10,000 companies worldwide. Hermes Investment Management has been engaging with companies for over 20 years, building a compelling story for responsible investment.

Today, Hermes EOS boasts an incredibly effective group of highly skilled, multi-national professionals, all committed to advising leading businesses on sustainability, governance and the environment.

EOS Services

Hermes EOS aims to protect the value of our clients’ assets by engaging in the long-term risks that affect the long-term growth and profitability of the companies they own. With £346.3/€392.6/$455.3 billion of assets under advice2, our thinking goes far beyond short-term financial gain. Across our range of services we strive towards a world where the power of affecting change through engagement with companies is valued and understood by all parties concerned.

Corporate engagementOur highly effective group of skilled, multinational professionals advise leading businesses on sustainability, environmental, social and governance concerns. We have been engaging with companies for over 20 years.

Intelligent votingOur team engages in active stewardship on behalf of our clients, voting at AGMs and other shareholder gatherings to achieve our clients’ responsible ownership aims and fulfill their fiduciary duty to be active owners.

ScreeningWe screen the aggregate holdings of our clients for ESG characteristics to provide a scorecard and ranking of companies. The Controversial Company Report highlights breaches of international norms and conventions to help inform clients on exclusion and engagement decisions that are fundamental to investment management.

Public policy - We work with legislators, regulators, industry bodies and other standard-setters to help shape capital markets worldwide to further our clients’ responsible investment objectives. Hermes EOS strives to lead the debate on stewardship across the world, helping to ensure sustainable economies that work for long term social and environmental benefit.

Advisory services We provide expert consultancy to companies to help shape and develop their responsibility policies and align these to their investment’s beneficiaries and stakeholders. Development of client responsible ownership policies:

  • Engagement and voting policies
  • Positioning on environmental, social and governance and other sustainability issues
  • Integration of ESG factors into investment manager agreements
  • Exclusion policies

EOS Themes

Hermes EOS' approach goes beyond short-term financial gain. We concentrate on value added over the long term by engaging with companies and policy-makers on environmental, social, governance, strategy, risk and communication issues.

Environmental - we seek relevant environmental indicators and encourage companies to manage their environmental footprint, set appropriate targets and disclose progress. We want to hold companies to account for the way they manage natural resources and work towards a sustainable low-carbon economy.

Social and Ethical - we work to create long-term sustainable economies by improving human capital management and supply chains, raise health and safety standards, stamp out bribery and corruption and engage on labour and community relations, including disputes with unions.

Governance - we promote transparency and high standards of accountability at companies worldwide. We seek reassurance that companies have an appropriate board structure, and that board members have the right skills, a diverse background and sufficient independence.

Strategy, risk and communication - stewardship is not just good for the environment and society. We want organisations to understand that it is good for business. We aim to embed sustainability in business strategy and change corporate culture for the better.

  1. 1As of 30 September 2018
  2. 2As of 30 June 2018

EOS Annual Report

EOS Public Engagement Report

EOS Sales Contacts

Amy D’Eugenio, Head of Business Development and Client Service, Hermes EOS