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Federated Hermes Stewardship Report 2021

At Federated Hermes we believe the investment industry can be a powerful force for good, building a fairer, more equitable world for all – and that active ownership and engagement is the best way to achieve this. In this, our second annual Stewardship Report, we provide an update on our efforts towards effective and outcomes-driven stewardship.

Fast reading

  • Federated Hermes Limited is a leader among its global peers in the degree and transparency of its reporting on the stewardship imperative.
  • Monitoring engagement outcomes is crucial in ensuring our approach is effective and achieves the desired results.
  • This year’s report does exactly that – with expanded sections on our collaborative engagements, and on how we are responding to market-wide and systemic risks.

In our 2021 Stewardship Report, we outline our history, values and purpose, and engagement approach. The report includes highlights of our collaborative engagement activities, stewardship outcomes and impacts, and the policies underpinning what we do. It also demonstrates how we contribute to building a global financial system that delivers improved long-term returns for investors, as well as better, more sustainable outcomes for society.

Building on last year’s report, we provide more detail about our diversity, equity and inclusion strategy; the systemic and market-wide risks we monitor and seek to mitigate; the range of our involvement in industry initiatives; and the outcomes of our collaborative engagements.

In line with this, we take a deep dive into our approach to the Covid-19 pandemic and how we looked to counter its negative impact on economic sustainability, businesses and individual households.

Elsewhere, we consider our efforts to contribute to global efforts to tackle biodiversity loss, including through the Finance for Biodiversity Foundation which seeks to enable collaboration among financial institutions to reverse nature loss this decade.’

Finally, the human capital risks associated with intensive livestock production come under the spotlight – as do our efforts to engage with companies in the meat industry to mitigate those risks.

Risk profile
  • The views and opinions contained herein are those of the author and may not necessarily represent views expressed or reflected in other communications. This does not constitute a solicitation or offer to any person to buy or sell any related securities or financial instruments

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