In addition to this, the team operates a minimum ESG threshold for investment. Using our proprietary and forward looking ESG scoring system, the lowest scoring issuers from an ESG perspective are excluded from portfolios. Finally, Federated Hermes has a firm-wide exclusions policy that is incorporated into the credit funds.
For investment solutions governed by a sustainable investment objective alongside a financial investment objective, the engagers takes the lead in the development and maintenance of sustainable investment processes and proprietary sustainability scores. For the purposes of these solutions, the sustainability scores act as a further lens to review and screen the investible universe to ensure the portfolio is constructed in a way that feeds into the sustainable objective of the strategy.
At Federated Hermes, we aim to go a step further in the integration of ESG factors into our investment processes. We avoid traditional, backward-looking box-ticking and, instead, consider ESG within our holistic investment process.
Read our full report to learn more.
Disclaimer: 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.
For professional investors only. 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. 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.
