Every Federated Hermes employee is committed to conducting business in accordance with the highest legal and ethical standards. At the highest levels of the firm a commitment has been made to make responsible investing an integral part of our corporate culture. Our firm has introduced a corporate pledge which is intended as a clear signal of what we aspire to embody and is the foundation of our commitment to always put clients and beneficiaries first and to act responsibly and transparently (https://www.federatedhermes.com/about/). Because we are an investment management firm and investment products are our key output, the firm's focus has been to ensure that our investment teams have the best ESG tools and resources available to them for integrating ESG considerations, as appropriate, into their investment decision-making and valuation processes.
Federated's Director of Responsible Investing, working in tandem with the Director of ESG Integration International, has as his primary responsibility the continuing education of investment teams about ESG issues and building those factors into the framework of their investment processes. Together with Federated Hermes International, Federated has implemented a program of continuing education with a focus on sectors, industries, themes and investment analyses which enhance the portfolio manager's ability to identify material factors that may influence the risk assessment of a company and provide forward looking views of its sustainability. Investment teams are also provided with training on ESG integration tools such as the Carbon Tool, corporate governance tool and EOS engagement analytics, our ESG Dashboard as well as materials available from SASB, MSCI and Sustainlytics. The CIOs now have ESG integration progress in their performance appraisal goals and are encouraged to identify specific opportunities within their asset classes that can be improved through the addition of material ESG factors. This is considered part of the performance management process and is a factor in their variable incentive plan.
Federated Hermes has also undertaken responsible investing initiatives in other areas of the company reflecting a commitment to educating all of our employees and the public more broadly about ESG issues. We rolled out a Responsible Investing Center on our website which provides information about ESG investing, case study examples, and thought leadership on stewardship and ESG integration. For our employees, Federated offers online training materials, of which an ESG Academy is the centerpiece. The Academy is accessible to all employees and educates employees about the fundamentals and evolution of ESG investing. Federated leveraged that information to create and implement an online ESG training module for one of our largest clients.