Home » Podcast » Delta: the rationale and rigour of ESG analysis and engagement (part 1)

Delta: the rationale and rigour of ESG analysis and engagement (part 1)

4 ^th December 2019

Why should fixed-income investors factor sustainability into their investment decisions, and what are the approaches available to them? What drives an impactful engagement with a credit issuer?

This two-part episode of Delta explores home territory for Hermes that is of keen interest for many investors that we speak with: the purpose and practice of environmental, social and governance (ESG) analysis and corporate engagement in fixed-income markets.

In part I, Andrew ‘Jacko’ Jackson, Head of Fixed Income, and Mitch Reznick, Head of Research and Sustainable Fixed Income, discuss how ESG-investment strategies ranging from integration to impact apply to fixed-income markets. Aaron Hay, an engager in the fixed-income team, then explains what is required for an engagement with a company to be successful.

For Reznick, ESG investing enables credit investors to enhance performance while benefitting society and the environment. “When you invest, you are a financial stakeholder. And when you’re a financial stakeholder, you have a voice,” he says. “You can encourage a company to create positive change.”

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Andrew Jackson

Head of Fixed Income and Lead Portfolio Manager

Andrew joined the international business of Federated Hermes in April 2017 as Head of Fixed Income. He is responsible for leading the strategic development of the Credit and Direct Lending investment teams, and developing a multi-asset credit offering capable of accessing all areas of the global credit markets for pension funds and other long-term institutional investors.

Andrew joined from Cairn Capital, where he was Chief Investment Officer. In this role, Andrew was responsible for the development of the asset management business, which included designing new products and managing the investment teams, including strategy, portfolio management and research. He has managed assets across the spectrum of global credit and fixed income. He was previously vice president within the European credit structuring team at Bank of America and has held roles with Fitch Ratings and PricewaterhouseCoopers. Andrew holds a BSc degree in Mathematics & Theoretical Physics from Kings College London.

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