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

PRI reporting framework 2020

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes » (C) Implementation: Integration of ESG factors

C) 実施: 統合

LEI 08. Review ESG issues while researching companies/sectors

08.1. E・S・Gの各要因が投資分析の一環として体系的に調査されている、アクティブ運用の上場株式ポートフォリオの割合を記載してください。








08.2. 補足情報 [任意]

Equity investment teams utilize proprietary data, in-house assessments, and EOS active engagements to incorporate relevant and material ESG factors in their due diligence process.  Federated Hermes has developed a full suite of company-specific and portfolio-level ESG analytical tools which serve as a cornerstone of ESG integration in our equity strategies.

  • ESG Dashboard gives all investment teams access to material E,S, and G information for covered companies through the lens of a proprietary QESG score.  The score uses 10 leading ESG data sources to identify stocks with positive ESG characteristics and flags ESG momentum.
  • Portfolio Snapshot tool allows Portfolio Managers to view portfolio Engagement analytics including percent of fund holdings engaged by EOS, ESG themes engaged on and progress made over time.
  • Carbon Tool measures the carbon footprint of an investment fund relative to its benchmark and flags portfolio holdings with an outsized Scope 1, 2, and 3 emissions profile.
  • Governance tool is multidimensional, assessing a company across measurable governance metrics and flagging outliers and discrepancies and is highly complementary to the company ESG due diligence.

All of the these ESG tools are housed in our ESG hub, a centralized database for all ESG resources and proprietary analytics for investment teams.


LEI 09. Processes to ensure integration is based on robust analysis

09.1. ESG統合が徹底した分析に基づいていることを確実にするために、組織が使用しているプロセスを記載してください。

          The Responsible Investing Office holds formal monthly thematic deep dive webinars broadcast firmwide with presentation by various EOS engagers and SASB lead analysts.

09.2. 組織の統合戦略の一環で包括的ESG調査の対象になるアクティブ運用上場株式の割合を記載してください。

09.3. ESG統合戦略に使われる第三者のESG評価が更新される頻度を示してください。

09.4. ESG統合戦略に使われる組織内調査を見直す頻度を示してください。

09.5. ポートフォリオ・マネージャーがどのようにしてESG情報を保有し、使っているのか説明してください。

          Our Director of Responsible Investing, Director of ESG Integration and EOS Engagers meet regularly with investment teams to provide relevant data and integration updates.

09.6. 補足情報 [任意]

Federated assures that all of its investment teams have access to best-in-class ESG resources and analytics through a centralized ESG information hub.  Investment teams can access multiple sources of ESG ratings and research, both third-party as well as Federated Hermes' proprietary data, research and portfolio level tools. These  proprietary tools include our ESG Dashboard, QESG score, Portfolio Snapshot, Carbon Tool, Governance Tool and EOS Engagement Analytics.

The importance of materiality of ESG factors and identifying sector KPIs is a key focus of continuous education for all our investment teams across asset classes.  We hold formal monthly thematic deep dive webinars broadcast to investment teams firm-wide with presentations by various EOS engagers and SASB lead analysts.

Ultimately each investment team is responsible for understanding and incorporating relevant and material ESG information into their investment processes.  While some teams are more advanced than others in their application of the full suite of proprietary data, materiality and engagement resources, all active fundamental equity teams are incorporating at least one dimension of our ESG toolkit within their investment framework.

LEI 10. Aspects of analysis ESG information is integrated into


10.1. 投資分析のどの側面にESG情報を統合しているかを記載してください。






10.3. ESG情報をポートフォリオの加重にどう統合しているかを説明してください。

 Our investment teams are equipped with multiple portfolio-level ESG analytics which help our investment teams combine the best of fundamental and ESG research to help identify sectors and companies with the greatest exposure or ESG momentum.  

Our suite of proprietary portfolio tools includes a Portfolio Snapshot, Carbon Tool and Engagement Measurement, all of which help expose leaders and laggards on dimensions of engagement, carbon emission, and governance.  For example, our Carbon Tool measures the carbon risk of an investment fund relative to its benchmark and of listed companies relative to their peers, including Scope 1, 2, and 3 emissions.  By identifying outlier companies versus industry peers and benchmark, portfolio managers can identify sectors and individual companies that may not be responding to larger secular trends versus their peers, or conversely identify a company which is pivoting their business model to a more sustainable model. Investment teams can then take appropriate action such as changing the status of a holding, resulting in adjusted or altered portfolio level exposures.


10.6. 補足情報 [任意]

As part of its commitment to intensive, bottom-up fundamental research, Federated investment teams' comprehensive security analysis process considers macro factors as well as industry and company specific concerns.  Within that context, financially material ESG factors are used as an additional information set to help support the investment thesis for a specific security and sector allocation.  Each of our teams makes use of ESG information in a manner that is most appropriate for their investment strategy.