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Federated Hermes, Inc. (formerly Federated Investors, Inc.)

PRI reporting framework 2020

You are in Direct - Listed Equity Active Ownership » Overview

Overview

LEA 01. Description of approach to engagement

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate whether your organisation has an active ownership policy (includes engagement and/or voting).

01.2. Attach or provide a URL to your active ownership policy.

01.3. Indicate what your active engagement policy covers:

General approach to Active Ownership

Engagement

Voting

01.4. Do you outsource any of your active ownership activities to service providers?

01.6. Additional information [optional]

EOS at Federated Hermes (EOS) engages with companies on material environmental, social and ethical, governance, strategy, risk and communication issues with the goal of achieving beneficial change with respect to risk management, value creation and reputation. Engagements are objective-driven and follow a structured, milestone-driven approach to be able to track engagement process over time. Interactions are sought at the board, senior management and specialist level, which is complemented by collaborations with other investors where appropriate. The work is principally carried out by our multinational stewardship team, which has significant cumulative and diverse experiences and skills. All company engagements are sought to be complementary in goals to Federated Hermes' wider public policy and best practice work.

Our stewardship team boasts one of the largest stewardship resources globally composed of an effective group of highly and diversely skilled, multi-national professionals, all committed to influencing leading businesses on governance and sustainability matters. We take a collaborative, client-led approach to determine the companies and themes of our engagement on environmental, social, governance and strategic issues.  Our Client Advisory Board and Council provide our clients with unique forum to share their feedback and priorities to ensure that our service is developed in line with their needs and best practices.  Consistent issues tend to include those around minority shareholder rights, executive remuneration, corporate transparency, labour and human rights and environmental impacts. Our engagements with companies will normally focus on those matters which are relevant to the longer-term strategic success of the company and typically involves senior face-to-face interactions. Generally our engagement activity becomes more active where we believe engagement will lead, from a value or risk perspective, to a more sustainable and successful company. Our approach is complementary to and supportive of wider efforts to promote prosperity, while protecting the planet. In particular, the many environmental and social themes of our engagement plan are well aligned with the Sustainable Development Goals and support each of the goals either directly or indirectly.

EOS is responsible for our formal and structured engagement programs and brings a level of expertise and focus to the firm's interactions with investee companies regarding sustainable business practices. EOS engagement plans work harmoniously with the engagements and interactions conducted by the firm's investment teams and proxy voting specialist that are part of our fundamental research/due diligence process and active ownership practices. 


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