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

PRI reporting framework 2020

You are in Strategy and Governance » ESG issues in asset allocation

資産配分におけるESG問題

SG 13. ESG issues in strategic asset allocation

13.1. 貴社組織がシナリオ分析および/またはモデリングを実施するか記述してください。実施する場合、 シナリオ分析について説明してください(資産クラス別、セクター別、戦略的資産配分等)。

13.3. 補足情報 [任意]


SG 13 CC.


SG 14. Long term investment risks and opportunity

14.1. 一部の投資リスクと機会は長期トレンドの結果として発生します。貴社では、以下のどの項目について考慮するか明示してください。

その他(具体的に記入してください)(1)

          EOS at Federated Hermes engagement themes include pollution, biodiversity and sustainable agriculture.
        

14.2. 気候に関するリスクと機会に対応して組織で実施されている活動を選択してください。

具体的に記入してください

          Our Proxy Voting Committee has regularly voted for increased disclosure of climate change risk among investee companies.
        

14.3. 次のツールの中から気候関連リスクと機会の管理に組織が用いているものを選択してください。

14.4. 排出量リスクの開示を選択した場合、採用している開示方法またはそのフレームワークの中で気候関連のものを挙げてください。

Our Carbon Tool allows fund managers to assess their fund's carbon performance, carbon risk, and corresponding engagements with investee companies in a comprehensive manner.  The tool also facilitates enhanced reporting to clients to demonstrate how ESG and engagement is being credibly integrated into the firm's fund and stewardship offerings.

14.5. 補足情報 [任意]

We decided to develop the tool in-house because we realized that most commercially available portfolio tools were focused on reporting, as opposed to investment decision-making and delivering progress in climate-related engagements.  We also wanted to combine carbon data from Trucost with our own internal carbon model, QESG score, financial and engagement data.  Our proprietary public markets carbon analytics tool goes beyond portfolio-level aggregate statistics and focuses on identifying patterns and outliers.  In particular, we look at data with various lenses to identify companies better or worse placed to deal with client change.  In particularly, the carbon tool assesses and integrates the following four key elements, making it a cutting-edge approach in evaluating the impact that investment funds have on the environment:

  1. Measuring carbon risk of an investment fund relative to its benchmark and of listed companies relative to its peers, including Scope 1, 2, and 3 emissions.
  2. Calculating the value at risk for an investment fund for different carbon pricing and policy scenarios.
  3. Identifying companies with which carbon-focused engagement should be initiated or intensified.
  4. Gauging the level of carbon risk being engaged on within portfolios and the progress achieved.

The tool helps our fund managers to more effectively take into account information about specific carbone risk and thereby enhance their investment decisions.  This helps them identify investment opportunities and threats to value, and to begin or intensify engagements that can reduce the risk of holding exposed companies.

We track carbon footprint and weighted average carbon intensity (carbon emissions divided by AUM) of our equity and credit portfolios.  In addition, we compare our WACI with the MSCI world index.  The analysis includes scope 1 and 2 emission.  Despite being backward looking data, this provides a good proxy for assessing the exposure of our assets to carbon risk.  We use the market capitalization ownership and enterprise value method for calculating the carbon footprint of our equity and credit assets under management.

Our carbon tool reveals, most importantly, that the concentration of emissions in a small number of companies makes engagement potentially very powerful.  This gives a lot of leverage to push companies for better carbon performance, and more generally a coherent climate change strategy.


SG 14 CC.


SG 15. Allocation of assets to environmental and social themed areas

15.1. 貴社にて、特定の環境および社会をテーマとする分野に基づいてファンドに資産を配分したり、ファンドを運用しているかどうかについて明示してください。

15.2. 環境および社会をテーマとする分野に投資された合計運用資産(AUM)の割合を明示してください。

.01 %

15.3. 貴社が投資しているテーマ分野を明示のうえ、AUMに対する特定の資産クラスの割合を記載し、その内容を簡潔に説明してください。

分野

          UN Sustainable Development Goals
        

投資している資産クラス

1 % (AUMの)
.05 % (AUMの)
.05 % (AUMの)

簡潔な説明および投資尺度

Federated has sponsored and launched two SDG funds: Federated Hermes SDG Engagement Equity Fund. The Equity Fund seeks to invest in companies that provide the potential for long term capital appreciation while also contributing to positive societal impact aligned to the United Nations Sustainable Development Goals. In addition to fundamental financial indicator criteria, the Fund considers engagement criteria such as assessment of company management competence, integrity, and vision, as well as exposure to one or multiple UN Sustainable Development Goals. 

The SDG Engagement High Yield Credit Fund is a high conviction strategy that invests in high yield companies that demonstrate willingness and ability to create positive change in society and/or environment while improving their credit profiles.  The strategy aims to generate long-term, risk-adjusted outperformance by investing in attractive high yield credit instruments and engaging with the underlying companies to generate positive impacts that support the SDGs.  Portfolio companies must meet specific investment and engagement criteria.  Each should have supportive fundamentals and their business lines, supply chains, product or service offerings must provide a foundation to create SDG-aligned impact and their executive teams must be willing to enter the long-term transformative process of engagement.

 

 

 

15.4. 含めたい補足情報があれば、添付してください。 [任意] 



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