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Stewardship Report 2020: key takeaways

We outline the key takeaways of our Stewardship Report in which we present our purpose, our responsible investment and ownership approach and examine how the principles of the Stewardship Code are reflected in all areas of our firm.

Fast reading

  • The investment industry can be a powerful force in building a better world – and at the international
    business of Federated Hermes, we believe active stewardship is the best way to achieve this.
  • In this summary report, we outline how these core values and beliefs have informed our decisions and activities across the business.
  • Stewardship is “the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society” (UK Stewardship Code, 2020).

Since first engaging for stronger UK corporate governance in 1983, to chairing the development process of the Principles for Responsible Investment (PRI) in 2006 (and becoming a founding signatory), we have been at the vanguard of a movement that is now redefining the practice of investing. We seek to continue to drive improved standards industry wide.

This document outlines the key takeaways of our 2020 Stewardship Report, in which we present our purpose, our
responsible investment and ownership approach and examine how the principles of the Stewardship Code are reflected in all areas of our firm.

We have demonstrated through the almost 40-year history of our firm that responsible investment and stewardship often lead to better financial outcomes. As an active investment manager, we have concluded that successfully making money over the long term is much more sustainable than doing so over the short term.

We believe there are two mutually reinforcing strands of responsible investment management: responsible investment and responsible ownership. Together, these aim to generate sustainable wealth creation for the end beneficiary investor, encompassing investment returns and their social and environmental impact. Throughout this summary report, we seek to communicate how these core values and beliefs have informed our decisions and activities across the business.

To read our 2020 Stewardship Report, please click here. Or alternatively, to read the summary document, please click here. 

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