As pioneers of ESG integration and stewardship, we have been at the forefront of responsible investing since 1983. We aim to deliver sustainable wealth creation that enriches investors, benefits society and preserves the environment – for current generations and those to come.

To achieve this, we integrate ESG (Environmental, Social and Governance) in our investment decisions and stewardship to deliver sustainable outcomes and further investment insights across our investments. We believe that one size does not fit all therefore, our ESG and stewardship integration is customised to each investment strategy, resulting in diverse approaches to regions, sectors and portfolio construction. However, we do believe that there are guiding principles to a good integration approach. Hence, our best practice responsible investing is achieved by undertaking four mutually reinforcing strands of activity: advocating in the beneficiaries’ interest,  active ownership via engagement, ESG integration, and behaving as a responsible firm.

EOS in-house stewardship team tracks progress and history via engagement portal

When researching investments, we only use third-party ratings at the initial research stage and, thereafter, carry out proprietary, transparent ESG analysis to conduct fundamental company research; this includes qualitative analysis of material ESG issues and also integration of any engagement insights from our in-house stewardship team. As part of our investment decision-making, we also benefit from stewardship insights to embed a forward-looking view in ESG analysis. Once we have invested in a company, we continue to monitor and engage on material issues including ESG, where relevant.

We do this by leveraging the engagement information that our in-house stewardship team, EOS at Federated Hermes, obtains in its engagement meetings with investee companies. As well as accessing EOS’ engagement portal – which includes the engagement history and progress against live objectives – portfolio managers attend engagement meetings with the engagers. The benefit of these joint meetings is substantial and results in more robust engagement that focuses on the relevant and material risks and opportunities including ESG.

Research is facilitated via tools for carbon, corporate governance, and environment

In addition to making use of third-party research which looks across a range of E, S and G factors, we also have a range of in-house proprietary tools which include:

Dedicated Responsibility Office evaluates level and quality of ESG integration by investment strategy using assessment matrix of 86 KPIs

Our dedicated Responsibility Office, led by the Head of Responsibility, reports to our CEO and hosts quarterly meetings with each of the investment teams to review and assesses their ESG integration approach using a matrix of 86 Key Performance Indicators across 28 sub-indicators, including:

The value of investments and income from them may go down as well as up, and you may not get back the original amount invested.


Issued and approved by Hermes Investment Management Limited which is authorised and regulated by the Financial Conduct Authority. Registered address: Sixth Floor, 150 Cheapside, London EC2V 6ET.