Academy
An educational hub about sustainability and investment developed by our experts
Welcome to the Federated Hermes Academy – an educational hub developed by our experts for our clients and prospects seeking to understand responsible investing and how the integration of environmental, social and governance (ESG) and stewardship can help create long-term wealth sustainably.
From the basics of ESG and stewardship to impact investing and advocacy, we will equip you with the knowledge needed to navigate the landscape of acronyms and approaches used across the investment industry and discern genuine integration from greenwashing.
Sustainability seminars
Our sustainability seminars are CPD accredited and one-hour long. Please note our seminars can be tailored to your specific requirements. If you’d like bespoke sustainability and investment training, please contact your sales representative. Otherwise, please secure your place by registering for the modules below.
Access engaging sessions from our successful Season One of the Academy which we signed off in 2021.
The net-zero imperative
Mitch Reznick, Head of Sustainable Fixed Income, Credit, and Louise Dudley, Portfolio Manager, Global Equities
While 90% of the global economy has now pledged net zero carbon emissions over the next 30 to 50 years, ambitions still fall short of the goals laid out in Paris Climate Accords. Even after 2021’s COP26 climate change conference, updated government pledges would put the world on a 1.8°C post-industrial warming trajectory, according to estimates from the International Energy Agency.
Although the exact route to net zero remains unclear, the imperative for investors is not: only a massive combined effort by all stakeholders can achieve a 1.5 °C pathway.
Learning outcomes:
- Understand the backdrop to the climate crisis
- Explore what needs to be done to avert catastrophic global warming
- Learn about the role of active management in mitigating CO2 emissions
29/06/2022
9.00 BST / 10.00 CEST / 16.00 SGT
All together now: Why social inclusion matters
Martin Todd, Portfolio Manager, European Equities and EOS
Social inclusion is the foundation for shared prosperity. In its absence, inequality thrives and poverty gains a foothold.
With a world subject to massive social transformation, rising urbanisation, climate change, seismic shifts in technology and transformative demographics, the question of inclusion sits at the heart of everything we do as responsible investors.
Learning outcomes:
- Understand how social exclusion undermines prosperity
- Explore how social inclusion has the potential to transform global GDP
- Learn what investors can do to bring about change.
28/09/2022
09.00 BST / 10.00 CEST / 16.00 SGT
A design for life: Building better through sustainable real estate
Kirsty Wilman, Real Estate Finance
According to the World Economic Forum, the real estate sector consumes over 40% of global energy each year, buildings are responsible for 20% of global greenhouse gas emissions, and the construction industry consumes c.40% of the world’s raw materials annually.¹
Against this backdrop, it’s little wonder that sustainable real estate is considered a critical element in achieving momentum towards the world’s net zero ambitions.
Learning outcomes:
- Understand the carbon challenge facing the real estate sector
- Explore paths to remediating the industry’s carbon footprint
- Learn how investors in real estate can engage with stakeholders and advocate for more sustainable approaches
¹ World Economic Forum: ‘Environmental Sustainability Principles for the Real Estate Industry’.
30/11/2022
09.00 GMT / 10.00 CET / 17.00 SGT
Understanding the basics of sustainability and investment
What does ESG stand for?
- Environmental: climate change, natural resource stewardship, pollution, waste and the circular economy.
- Social: human rights, indigenous people’s rights, child and slave labour, bribery and corruption, inclusion and diversity, health and safety, ethics, conduct and culture.
- Governance: board composition, succession planning, executive remuneration, minority shareholder rights and protections, and investor stewardship.
Please note, the items listed above for each factor are not exhaustive. They are examples of each factor that are included solely for illustrative purposes.
What is active ownership?
Using the rights of influence as financial stakeholders to actively engage companies or assets and other stakeholders to further the long-term interests of end investors. This consists of objective-driven dialogue seeking positive and sustainable change in the purpose, governance, strategy operations and in the impact on the environment and society.
What is Stewardship?
The role in which investment managers use the rights – if not the obligation – of financial stakeholders to engage with companies or assets to pursue the objective of sustainable wealth creation for investors.
The motivations for stewardship
- Top-down pressure: global principles; regulations and codes
- Bottom-up pressure: risk and return evidence; sustainability and positive societal impact; and client/beneficiary investment beliefs
Why integrate ESG and stewardship?
- Reputation
- Risk
- Return
- Wider impact
It provides the industry’s social licence to operate
ESG: more than a feel-good factor?
Research shows:
- Sound ESG standards lower the cost of capital
- Solid ESG practices result in better operational performance
- Stock price performance, credit spreads and real estate is positively influenced by good ESG and CSR practices
What is advocacy?
Actively seeking to influence change in public policy in the interests of investors and the wider society by engaging with policymakers, regulators and industry bodies on a range of issues. These include: the financial system and investment industry, corporate governance, business purpose, climate change, inequality and inclusion.
What are the Sustainable Development Goals (SDGs)?
A blueprint for significantly changing the world – by ending global poverty, safeguarding the planet and aiming for prosperity for all – by 2030.
There are 17 SDGs, and within these goals there are 169 targets and 230 indicators.
Through investing and engagements, we can support the attainment of the SDGs.
What is impact investing?
Purposefully targeting companies which can generate positive social or environmental outcomes in addition to financial gains. Impact investors mainly target investments that are able to provide solutions which make a positive contribution towards the attainment of the 17 SDGs.
Sustained thinking: our ESG knowledge hub
Our knowledge hub brings together the latest insights from our experts and thought leaders on sustainable investing.
The Circular
Keeping you in the sustainability loop
From thought leadership to press features, we capture our recent sustainability-related insights in our quarterly newsletter The Circular.
Our definitions
What do we mean by ESG leaders, active ownership and SDG investing? We provide definitions that we stand by.
