Federated Hermes Global Equity ESG Pathway Fund
SRI Style:
ESG Plus
SDR Labelling:
Not eligible to use label
Product:
SICAV/Offshore
Fund Region:
Global
Fund Asset Type:
Equity
Launch Date:
01/05/2014
Last Amended:
Jul 2025
Dialshifter (
):
Fund Size:
£1679.26m
(as at: 31/03/2025)
Total Screened Themed SRI Assets:
£181.94m
(as at: 31/03/2025)
Total Responsible Ownership Assets:
£29509.31m
(as at: 31/03/2025)
Total Assets Under Management:
£38523.15m
(as at: 31/03/2025)
ISIN:
IE00BKRCPS19
Contact Us:
Objectives:
The investment philosophy can be encapsulated in four words: pragmatism, sustainability, responsibility and longevity. Companies with a competitive advantage and a sustainable business model are sought after as they are more likely to offer visibility of earnings growth. In addition it is important that companies behave responsibly, which tends to lead us to companies that are well governed as they are likely to avoid unforeseeable negative surprises. Choosing stocks that demonstrate a combination of these characteristics allows the team to hold stocks over the long-term, as it is only by doing this that a company can fulfil its true potential.
The strategy is agnostic towards investment style. It uses criteria from a range of styles and is biased towards companies with favourable environmental, social and governance (ESG) attributes.
Sustainable, Responsible
&/or ESG Overview:
Companies that have managed their ESG risk have historically outperformed over the long term. Furthermore, the team believes that companies that are improving their ESG profile can unlock significant shareholder value.
The investment philosophy is implemented through the team’s proprietary stock selection model. The ESG characteristics of companies are reflected in the team’s proprietary assessment of ESG performance, the QESG Score. These scores reflect the current behaviour of companies and, crucially, how the former are improving.
Selected stocks are then subjected to a disciplined subjective analysis, which seeks to validate the models results and assess macro and ESG risks, and includes valuable insights from EOS, our in-house stewardship team.
The result is a portfolio with exposure across the style spectrum that favours best-in-class companies alongside those whose ESG profile is improving, which aims to consistently produce excess risk-adjusted returns over the long term.
Primary fund last amended:
Jul 2025
Information directly from fund manager.
Fund Filters
Sustainability - General
Funds that have policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See fund information.
A core element of these funds aim to encourage higher sustainability standards across business practices through responsible ownership / stewardship / engagement / voting activity
Find funds that use the UN Global Compact to inform or help direct where they can or cannot invest and will typically not invest in companies with significant breaches (low standards) - although strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/
Nature & Biodiversity
Find funds that have policies in place designed to ensure they do not invest in companies that are significantly involved in deforestation. This typically relates to palm oil plantations where biodiversity loss is a major concern (as well as other issues). Strategies vary. See fund information for further detail.
Climate Change & Energy
Funds that have policies (documented strategies that explain their position on) climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary. Read fund details for further information.
A core element of these funds will aim to encourage the transition to lower carbon activities through responsible ownership / stewardship / engagement / voting activity
Funds that hold companies in the clean energy and renewable energy sectors (at the time research was supplied). Fund strategies vary, in particular the proportion of investment in these areas may vary significantly. Check fund literature for details.
The fund manager excludes companies with direct involvement in fossil fuel exploration (eg coal, oil and gas companies)
Ethical Values Led Exclusions
Find funds that exclude companies which make controversial weapons such as landmines, cluster munitions and chemical weapons. See fund literature for further information.
Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details.
Human Rights
Find funds that have policies relating to human rights issues. Funds of this kind typically require companies to demonstrate higher standards, although some fund managers work to encourage improvements. Investee companies are often judged against internationally agreed norms or standards. Strategies vary. See fund information for further detail.
The fund has a policy which excludes assets with involvement in Modern Slavery
Gilts & Sovereigns
Find funds that do not invest in / exclude 'sovereigns' - debt issued by governments. See eg https://www.investopedia.com/terms/s/sovereign-debt.asp
Banking & Financials
Find funds that include banks as part of their holdings / portfolio.
Funds that do or may invest in insurance companies.
Governance & Management
Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary. See fund literature for further information.
Find funds that aim to avoid investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards. See fund literature for further information.
Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list
Fund managers encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Find fund managers that encourage the banks and insurance companies they invest in to publish climate change related financial information - as set out by the Task Force on Climate Related Financial Disclosures (with the aim of helping investors measure and respond to climate risk).
A core element of these funds will aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
Fund Governance
Find funds that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature.
Environmental, social and governance issues are part of this fund’s reporting of their ‘value’ to clients. AoV reporting is a statutory requirement. Including ESG factors in its calculation is not.
Asset Size
Find funds that have SRI strategies and focus their investment stock selection on larger companies. (e.g. over circa £5-£10bn)
Targeted Positive Investments
Find funds that have calculated the proportion of fund asset that meet the new EU Taxonomy requirements and that they total 5-25% of assets. This will typically require adding up the proportion of each individual company's activity that is regarded as 'green' so that the fund manager can produce an overall total for the whole fund / portfolio.
How The Fund Works
Find funds that focus on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.
Find funds with few exclusions - typically for example exclude tobacco or companies that breach commonly adopted standards or norms such as the UN Global Compact.
Find funds that invest more heavily in those that have higher ESG ratings/standards or scores and less heavily in companies with lower ESG ratings. Where this is central to a fund's strategy you should expect it to invest in most sectors. Strategies vary.
Find funds that make stock selection (and ongoing fund management) decisions based on ESG data or company ratings (normally supplied by third parties) rather than focusing on what individual companies do, how they operate or their plans for the future
Aims to avoid companies that do significant harm. This originates from the EU’s sustainable finance ‘DNSH’ (do no significant harm) work, which is not necessarily used by UK investors.
Find funds that have 'mapped' (reviewed) their investment selection and management strategies to identify which of the UN Sustainable Development Goals (SDGs) the fund is helping to address.
Find funds that make significant use of internationally agreed 'norms' (e.g. United Nations Global Compact - UNGC - or the UN Sustainable Development Goals - SDGs) as part of their investment selection process alongside additional SRI criteria such as positive or negative stock selection policies and/or stewardship strategies.
Find funds that have an ESG strategy (which is typically focused on avoiding companies that pose environmental, social or governance related risks) with additional criteria such as positive and/or negative screens, themes and stewardship strategies.
Find funds that consider both the 'positive' and 'negative' aspects of company behaviour and make balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas.
A major focus of these funds is the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).
Find funds that have published explanations of their ethical, social and/or environmental policies online (i.e. fund decision making strategies/ buy/sell &/or asset management strategies).
Fund invests in assets that have not passed its usual sustainability criteria or screening standards in order to help manage investment risk. This may be limited or significant. See literature.
This fund does not use stock lending for performance or risk purposes.
Unscreened Assets & Cash
All assets held in the fund - except cash - meet the sustainability criteria published in fund documentation.
Intended Clients & Product Options
Finds funds designed to meet the needs of individual investors with an interest in sustainability issues.
Finds funds designed to meet the needs of individual investors with an interest in ‘Impact investment funds’ which help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies they regard as beneficial to people and / or the planet. Strategies vary. See fund literature for further information.
Only applicable for DFM’s & portfolio providers. Finds those that offer an SRI / ESG portfolio option
Only applicable for DFM’s & portfolio providers. Find service providers who offer multiple SRI / ESG portfolio options
Only applicable for DFM’s & portfolio providers. Find service providers who offer bespoke ('personalised') SRI / ESG portfolio options
Labels & Accreditations
Finds funds classified under Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 8 of the SFDR is a set of requirements that apply to financial products that 'promote' environmental or social characteristics with high governance also. These rules do not currently apply to UK funds so many managers may leave this field blank.
A voluntary corporate culture standard for investment managers, see https://www.investorsact.com/ - City Hive
Fund Management Company Information
About The Business
Finds fund management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
Find fund management companies that actively encourage higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Find fund managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)
Find fund managers that consider responsible ownership and ESG to be a key differentiator for their business.
The leadership team of this asset manager have performance targets linked to environmental goals.
Find fund management companies that aim to align all their investments (across all funds) to help meet the aims of the UN Sustainable Development Goals.
Find funds run by fund managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies they invest in across funds (not normally limited to ethical or SRI options.) Read fund literature for further information.
Find fund management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Find fund management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).
Asset manager has information on their website that explains how they treat 'vulnerable clients' (as set out in FCA regulation)
This asset management company invests in companies which have recently listed on a stock exchange (which is important as it can help grow new businesses).
Asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See fund manager website for details.
Fund management entity offers unstructured intermediary training on sustainable investment (ie for financial advisers and wealth managers)
Fund management entity offers unstructured intermediary training on sustainable investment (ie for financial advisers and wealth managers)
Collaborations & Affiliations
Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Find fund management companies that are members of UKSIF - the UK Sustainable Investment and Finance association
A member of the Taskforce for Nature Related Financial Disclosures group which aims to aid risk management and shift money towards nature-positive outcomes.
Fund management entity is a member of the Investment Association https://www.theia.org/
Resources
Find fund management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Find a fund management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Find fund management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types)
Accreditations
Finds organisations / fund managers that have an A+ PRI rating - meaning they are highly rated according to the 'Principles of Responsible Investment'
Find fund managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where fund managers are encouraged to behave like responsible, typically longer term 'company owners'.
Engagement Approach
Find fund management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
Find fund management companies that are working with the companies they invest in to encourage more responsible corporate taxation.
Fund manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.
Asset manager has stewardship /responsible ownership strategy with involves encouraging investee asset to reduce plastic waste and pollution.
Asset manager has a stewardship / responsible ownership policy that means they are working to encourage more responsible mining practices - where environmental and social issues are properly dealt with by the companies they invest in.
The asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global
Asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/
Asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards
Asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)
Asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets
working with the assets they hold to help stamp out modern slavery - where direct or indirect company employees are exploited for business benefits.
Fund managers have stewardship strategies in place that focus on improving governance standards across investee assets
Asset manager has stewardship strategy in place which involves discussing mental health issues with investee companies - with the aim of raising standards
Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards
Working to address sustainability, ESG and related concerns around artificial intelligence.
Escalation policies describe how a manager will proceed if stewardship / engagement activity is not successful in the short term.
Company Wide Exclusions
Find fund management companies (not funds) that avoid investment in 'controversial weapons' across all of their funds and other investment vehicles.
Find funds / fund managers that are reviewing, or have reviewed, their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. (Typically with reference to climate change.)
Climate & Net Zero Transition
Fund management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
Fund manager AGM / EGM voting strategy has processes in place that mean they will normally be expected to vote in a way that will encourage the transition to net zero greenhouse gas emissions.
Find fund management companies that have published a Climate Risk policy or statement that is signed / owned by their Chief Executive.
This asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
Find fund management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
Finds organisations / fund managers that have a company wide carbon transition plan - meaning that they have plotted a path to how they will move away from activities that produce or use carbon based energy sources (that emit greenhouse gases) towards clean, alternative, renewable energy sources.
Finds organisations / fund managers that have published ‘forward looking climate metrics’ e.g. 'implied temperature rise' data that are a total of the asset management company's share (% owned) of all the investee company emissions of the assets they manage, as well as their own direct and other indirect emissions.
This asset management company plans to achieve net zero greenhouse gas (CO2e) emissions with the help of a scheme that will lock away an amount of carbon that is equivalent to the company’s own emissions – so that the end result is ‘net zero’. Calculations and scope vary.
Find fund management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to'zero'.
Transparency
Find fund management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Find companies that publish information about their sustainable and responsible investment strategies on their company website.
Find fund management companies that will supply information about their sustainable and responsible investment activity on request.
Fund management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.
This asset management company has published a plan that explains how they are to become a sustainable business - without significant negative environmental or social impacts.
This asset management company has published a plan that explains how they will align to the climate change commitments made at the Paris Climate Talks, COP21.
This asset management company has published a plan that explains how they are going to achieve net zero greenhouse gas / CO2e emissions.
Find fund management companies that have supplied Dialshifter information. See Dialshifter tab within record for more information.
Sustainable, Responsible &/or ESG Policy:
The Global Equity ESG strategy seeks best-in-class companies within their specific industry or those that are showing positive ESG momentum, but does not explicitly exclude any companies. Rather than exclude specific sectors or industries, the team avoids certain behaviours. These behaviours include the manufacture of harmful and unsustainable products, e.g. tobacco, and exposure to severe ESG risks that may prompt material fines or regulatory consequences, e.g. companies deemed to be in breach of the UN Global Compact.
Exclusions:
Outside of the firm-wide exclusions list on controversial weapons, the Global Equity ESG strategy does not exclude a predefined list of companies. Instead, the team takes into account negative signals, including certain products or behaviours that are considered unsustainable. This can lead to exclusion of certain business lines and practices including:
- Companies involved in the production and/or manufacture of tobacco products.
- Companies which have been deemed to have breached the UN Global Compact Principles.
- Companies involved in controversial weapons in accordance with the guidelines of the Ottawa Convention on landmines, the Oslo Convention on Cluster Munitions, the Biological Weapons Convention, the Chemical Weapons Convention and involvement in nuclear weapons.
- Companies deriving a material proportion of revenue from coal mining or coal fired electricity production
- Companies deriving a material proportion of revenue from the gambling industry
- Companies deriving a material proportion of revenue from pornography
Consideration is also given to the engagement activity that is carried out by the EOS team around key issues to encourage better management of material environmental, social and governance risks
Process:
Assessment of the ESG characteristics of a company is a vital part of the team’s investment approach and the team uses ESG research in both proprietary models and in discussion with our in-house ESG experts, EOS.
The team has built a bespoke quantitative assessment of the most important ESG issues, the QESG Score, which evaluates a company’s ESG characteristics and identifies positive ESG change. The team believes that companies less exposed to ESG risks than peers will outperform over the long term. Further, it believes that companies that are improving their ESG profile through positive change can unlock significant shareholder value.
The QESG Score is designed to capture a company’s behaviour on various ESG issues, as well as observed change in its ESG behaviour. The score combines data from EOS, Sustainalytics, MSCI, CDP, ISS, Trucost, FactSet and Bloomberg and is weighted 50% governance factors, 25% environmental factors and 25% social factors; the score is shown in the ESG Dashboard. The weightings used are based on the expertise of the EOS team. Following research into the growing impact of ESG factors, the team found a significant correlation between governance and stock performance.
The QESG Score is a valuable component of the ESG Dashboard, which is used in the subjective part of the process, and provides a concise digest of the ever-increasing amount of data on ESG risks. As such, all of the team’s investments are analysed from an ESG perspective.
The expertise of EOS has also helped define the key performance indicators or risk factors on which each company is measured. These are either generic, such as board structure, or sector specific, focusing on the major risks by industry – such as CO2 emissions and fleet consumption for the automobiles industry, paper sourcing for media and energy efficiency for airlines. The team uses it to identify ESG risks within companies and determine the materiality of these risks. Any change in the level of ESG risk and progress on current engagements are key factors that could influence an investment decision.
The ESG Dashboard has helped the team further integrate ESG research into investment decisions and foster dialogue with EOS, with whom the team have formal monthly meetings, as well as numerous ad hoc conversations. The Dashboard is accessible through Bloomberg and, as well as its assessment of a company’s ESG characteristics, is further bolstered by the voting and engagement activities of EOS. This collaboration with our stewardship experts ensures the team remains active owners of the companies held in the portfolio.
The Portfolio Snapshot offers a portfolio perspective on ESG exposures. This tool reports on ESG characteristics of portfolio holdings (both in absolute and benchmark-relative terms) including voting and engagement data from EOS. The Snapshot also highlights companies with potential controversies and ESG concerns. The tool acts to promote discussion on thematic ESG risks, as well as to identify the best and the worst companies according to various ESG metrics.
By thoroughly rating companies on these extra-financial criteria, businesses (and investment managers) can be steered towards greater consideration of the ESG issues. This assessment of ESG factors helps the team reinforce its view of the sustainability of a company and is consistent with their long-term approach and helps ensure that turnover remains low.
The ESG integration approach adopted by the team is complemented by direct dialogue with businesses that is made possible through EOS, which ensures the team remains active owners of the companies held in the portfolio.
The team also has access to a range of proprietary tools, including the Corporate Governance Tool, the Carbon Tool and the Environmental Tool.
In addition, our investment teams make use of data related to ESG analysis from several providers, such as MSCI, Sustainalytics, Bloomberg, CDP, ISS, Trucost and Planetrics.
Resources, Affiliations & Corporate Strategies:
ESG Resources, EOS, Responsibility Office and ESG Specialists:
In terms of our ESG-dedicated personnel, Federated Hermes Limited has 75 staff members that are directly involved in ESG integration, as at 31 March 2025. We also have dedicated ESG personnel embedded within our investment teams. The teams are outlined below:
- Within the Responsibility Office, our dedicated Responsibility team is tasked with coordinating and supporting the development of our policies and their subsequent integration across our funds and stewardship services. Leon Kamhi, our Head of Responsibility, reports directly to our CEO. Each of our investment teams meet formally with Leon and his team on a quarterly basis to discuss their ESG integration activities.
- Our 37-person stewardship team, EOS, includes industry executives, senior strategists, corporate governance, sustainability consultants, climate change experts, accountants, ex-fund managers, former bankers and lawyers. The depth and breadth of this resource reflects our philosophy that stewardship activities require an integrated and skilled approach. Through EOS we engage with companies on strategic and material ESG concerns to promote investors long-term performance and fiduciary interests - this represents over $2.1 trillion in assets as at 31 March 2025.
- Within our Fixed Income team we have a Sustainable Fixed Income (SFI) team, led by Mitch Reznick, Head of Sustainable Fixed Income (and London managed Fixed Income strategies). The SFI team is responsible for the sustainability integration within our credit portfolios and has a dedicated engagement resource.
- We manage some focused responsible investing equity strategies: a Global Sustainable Equity strategy and an SDG Engagement Equity Engagement strategy.[1] The former is managed by Martin Todd (lead portfolio manager) and Henry Biddle (co-portfolio manager), and the latter is managed by Hamish Galpin. We also have a Head of Engagement - Equities, Will Pomroy, who oversees and leads the engagement programme for our sustainable equity strategies, which includes providing ESG analysis and formulating engagement strategies for the portfolios. Will Pomroy sits with the investment teams in London.
- The Global Equities team also has its own ESG specialist in portfolio manager Louise Dudley, who has been with the company since 2009, initially working in EOS. The team manage various ESG related strategies eg, the ESG Pathway Fund, a Low Carbon and an ESG Screened strategy.
- The Global Emerging Markets team includes two dedicated Responsible Investing & Sustainability personnel, Olivia Lankester and Hayley McGuiness. The investment team manage a Global Emerging Markets Equity ESG strategy. The Asia ex Japan team includes Seyoung Serena Ko who is a dedicated ESG Analyst.
Membership Lists:
Federated Hermes is supportive of the development of codes and standards relating to responsible business conduct and responsible investment to aid transparency and accountability. We adhere to a number of responsible business conduct codes and internationally recognised standards for due diligence and reporting:
- We were founding signatories of the UN Principles of Responsible Investment (UN PRI) in 2006 and committed to embedding the six Principles as a responsible investor and owner. We report annually using the PRI Reporting Framework. We also work with the PRI through a number of its working groups and initiatives.
- We are a signatory of a number of stewardship codes, including the Financial Reporting Council’s UK Stewardship Code since 2010. As part of our signatory status to the UK Stewardship Code we produce an annual Stewardship Report. Our stewardship business unit, EOS is a signatory of the Best Practice Principles for Providers of Shareholder Voting Research & Analysis and reports annually on implementation of these principles.
- Signatories of the UN Global Compact (UNGC) since 2017 and report annually on our implementation of the UNGC Principles across the themes of Environment. Human Rights, Labour Rights and Anti-Corruption. We implement the Principles across our operations, and the themes are reflected in our ESG integration and engagement processes as described in our Sustainability Risks Policy. We engage with the UNGC UK Network to support the continued growth of the network and the impact of its engagement with businesses.
- We joined Climate Action 100+ in 2015 and play an active role in this investor-led initiative with the support of over 360 investors, representing more than $34 trillion of assets under management that aims to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change.
- We were a founder of the 300 Club in 2011 and was the Chair until 2014.
- We have been members of the Net Zero Asset Managers Initiative since 2021 through which we have committed to support the goal of net zero greenhouse gas emissions by 2050, in line with global efforts to limit warming to 1.5°C as stated in the Paris Agreement. We publish an annual climate-related financial disclosures report in line with the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). Furthermore, we are proud to have become an inaugural TNFD Early Adopter, which was announced at the World Economic Forum event at Davos in 2023. We have already begun trialling elements of the TNFD disclosure recommendations in our reporting.
- In 2020 we signed the Finance for Biodiversity Pledge and the Eliminating Commodity Driven Deforestation Commitment, through which we have committed to assess and disclose our exposure to deforestation and to protect and restore biodiversity through our investment and engagement activities.
- We have been a member of the International Integrated Reporting Council (IIRC) since 2011 and the Sustainability Accounting Standards Board (SASB) since 2019.
- In line with international treaties, we are currently excluding companies that are manufacturing and/or are providing either an essential and/or tailor-made product or service to the manufacturers of relevant controversial weapons.
- We ensure our sustainable investments are aligned with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights.
- We comply with all relevant regulatory disclosures, including the requirements of the UK Modern Slavery Act (2015) as set out in our Modern Slavery Statement and the EU Shareholder Rights Directive II.
We are also members of a wide range of industry initiatives through which we seek to advance industry best practice, collaborate with other investors to achieve shared engagement and advocacy outcomes and ensure we remain at the forefront of best practice. We provide an annual update of our external memberships in our Stewardship Report, available via the link: https://www.hermes-investment.com/uploads/2025/05/a4e349bde8a792ace67777de1b554221/federated-hermes-limited-stewardship-report-2025.pdf
[1] Note: The SDG Engagement Equity Strategy includes the Federated Hermes Global SMID Equity Engagement Fund.
Dialshifter
This fund is helping to ‘shift the dial from brown to green’ by…
The ESG characteristics of companies are reflected in the team’s proprietary assessment of ESG performance, the QESG Score. These scores reflect the current behaviour of companies and how the former are improving.
Selected stocks are then subjected to a disciplined subjective analysis, which seeks to validate the models results and assess macro and ESG risks.
The result is a portfolio with exposure across the style spectrum that favours best-in-class companies alongside those whose ESG profile is improving.
SDR Labelling:
Not eligible to use label
Fund Holdings
Voting Record
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. Any investments overseas may be affected by currency exchange rates. Past performance is not a reliable indicator of future results and targets are not guaranteed.
For professional investors only. This is a marketing communication. It does not constitute a solicitation or offer to any person to buy or sell any related securities, financial instruments or financial products. No action should be taken or omitted to be taken based on this document. Tax treatment depends on personal circumstances and may change. This document is not advice on legal, taxation or investment matters so investors must rely on their own examination of such matters or seek advice. Before making any investment (new or continuous), please consult a professional and/or investment adviser as to its suitability. Any opinions expressed may change. All figures, unless otherwise indicated, are sourced from Federated Hermes. Whilst Federated Hermes has attempted to ensure the accuracy of the data it is reporting, it makes no representations or warranties, expressed or implied, as to the accuracy or completeness of the information reported. The data contained in this document is for informational purposes only, and should not be relied upon to make investment decisions. Federated Hermes shall not be liable for any loss or damage resulting from the use of any information contained on these pages. All performance includes reinvestment of dividends and other earnings. Please consider all strategy characteristics when investing and not just ESG characteristics.
Federated Hermes refers to Federated Hermes Limited (“Federated Hermes”). The main entities operating under Federated Hermes are: Hermes Investment Management Limited (“HIML”); Hermes Fund Managers Ireland Limited (“HFMIL”); Hermes Alternative Investment Management Limited (“HAIML”); Hermes Real Estate Investment Management Limited (“HREIML”); Hermes Equity Ownership Services Limited (“EOS”); Hermes Stewardship North America Inc. (“HSNA”); Hermes GPE LLP (“Hermes GPE”); Hermes GPE (USA) Inc. (“Hermes GPE USA”); Hermes GPE (Singapore) Pte. Ltd (“HGPE Singapore”); Federated Investors Australia Services Pty Ltd. (“FIAS”); Federated Hermes Japan Ltd (“FHJL”); Federated Hermes (UK) LLP (“FHUK”) and Rivington Energy (Management) Limited (“REML”). FHL is the majority shareholder in REML. FHUK, HIML, HAIML and Hermes GPE are each authorised and regulated by the Financial Conduct Authority. HAIML and HIML carry out regulated activities associated with HREIML. FHUK, HIML, Hermes GPE and Hermes GPE USA are each a registered investment adviser with the United States Securities and Exchange Commission (“SEC”) and HAIML and HFMIL are each an exempt reporting adviser. HGPE Singapore is regulated by the Monetary Authority of Singapore. FHJL is regulated by Japan Financial Services Agency. FIAS holds an Australian Financial Services Licence. HFMIL is authorised and regulated by the Central Bank of Ireland. REML, HREIML, EOS and HSNA are unregulated and do not engage in regulated activity.
In the European Economic Area (“EAA”) this document is distributed by HFMIL. Contracts with potential investors based in the EEA for a segregated account will be contracted with HFMIL.
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. Telephone calls may be recorded for training and monitoring purposes. Potential investors in the United Kingdom are advised that compensation may not be available under the United Kingdom Financial Services Compensation Scheme.
Fund Name | SRI Style | SDR Labelling | Product | Region | Asset Type | Launch Date | Last Amended |
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Federated Hermes Global Equity ESG Pathway Fund |
ESG Plus | Not eligible to use label | SICAV/Offshore | Global | Equity | 01/05/2014 | Jul 2025 | |
ObjectivesThe investment philosophy can be encapsulated in four words: pragmatism, sustainability, responsibility and longevity. Companies with a competitive advantage and a sustainable business model are sought after as they are more likely to offer visibility of earnings growth. In addition it is important that companies behave responsibly, which tends to lead us to companies that are well governed as they are likely to avoid unforeseeable negative surprises. Choosing stocks that demonstrate a combination of these characteristics allows the team to hold stocks over the long-term, as it is only by doing this that a company can fulfil its true potential. The strategy is agnostic towards investment style. It uses criteria from a range of styles and is biased towards companies with favourable environmental, social and governance (ESG) attributes. |
Fund Size: £1679.26m (as at: 31/03/2025) Total Screened Themed SRI Assets: £181.94m (as at: 31/03/2025) Total Responsible Ownership Assets: £29509.31m (as at: 31/03/2025) Total Assets Under Management: £38523.15m (as at: 31/03/2025) ISIN: IE00BKRCPS19 Contact Us: oscar.ayling@hermes-investment.com |
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Sustainable, Responsible &/or ESG Overview
Companies that have managed their ESG risk have historically outperformed over the long term. Furthermore, the team believes that companies that are improving their ESG profile can unlock significant shareholder value. The investment philosophy is implemented through the team’s proprietary stock selection model. The ESG characteristics of companies are reflected in the team’s proprietary assessment of ESG performance, the QESG Score. These scores reflect the current behaviour of companies and, crucially, how the former are improving. Selected stocks are then subjected to a disciplined subjective analysis, which seeks to validate the models results and assess macro and ESG risks, and includes valuable insights from EOS, our in-house stewardship team. The result is a portfolio with exposure across the style spectrum that favours best-in-class companies alongside those whose ESG profile is improving, which aims to consistently produce excess risk-adjusted returns over the long term. |
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Primary fund last amended: Jul 2025 |
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Information received directly from Fund Manager |
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Fund FiltersSustainability - General
Sustainability policy
Funds that have policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See fund information.
Encourage more sustainable practices through stewardship
A core element of these funds aim to encourage higher sustainability standards across business practices through responsible ownership / stewardship / engagement / voting activity
UN Global Compact linked exclusion policy
Find funds that use the UN Global Compact to inform or help direct where they can or cannot invest and will typically not invest in companies with significant breaches (low standards) - although strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/ Nature & Biodiversity
Deforestation / palm oil policy
Find funds that have policies in place designed to ensure they do not invest in companies that are significantly involved in deforestation. This typically relates to palm oil plantations where biodiversity loss is a major concern (as well as other issues). Strategies vary. See fund information for further detail. Climate Change & Energy
Climate change / greenhouse gas emissions policy
Funds that have policies (documented strategies that explain their position on) climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary. Read fund details for further information.
Encourage transition to low carbon through stewardship activity
A core element of these funds will aim to encourage the transition to lower carbon activities through responsible ownership / stewardship / engagement / voting activity
Invests in clean energy / renewables
Funds that hold companies in the clean energy and renewable energy sectors (at the time research was supplied). Fund strategies vary, in particular the proportion of investment in these areas may vary significantly. Check fund literature for details.
Fossil fuel exploration exclusion - direct involvement
The fund manager excludes companies with direct involvement in fossil fuel exploration (eg coal, oil and gas companies) Ethical Values Led Exclusions
Controversial weapons exclusion
Find funds that exclude companies which make controversial weapons such as landmines, cluster munitions and chemical weapons. See fund literature for further information.
Armaments manufacturers avoided
Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details. Human Rights
Human rights policy
Find funds that have policies relating to human rights issues. Funds of this kind typically require companies to demonstrate higher standards, although some fund managers work to encourage improvements. Investee companies are often judged against internationally agreed norms or standards. Strategies vary. See fund information for further detail.
Modern slavery exclusion policy
The fund has a policy which excludes assets with involvement in Modern Slavery Gilts & Sovereigns
Does not invest in sovereigns
Find funds that do not invest in / exclude 'sovereigns' - debt issued by governments. See eg https://www.investopedia.com/terms/s/sovereign-debt.asp Banking & Financials
Invests in banks
Find funds that include banks as part of their holdings / portfolio.
Invests in insurers
Funds that do or may invest in insurance companies. Governance & Management
Governance policy
Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary. See fund literature for further information.
Avoids companies with poor governance
Find funds that aim to avoid investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards. See fund literature for further information.
UN sanctions exclusion
Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list
Encourage board diversity e.g. gender
Fund managers encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Encourage TCFD alignment for banks & insurance companies
Find fund managers that encourage the banks and insurance companies they invest in to publish climate change related financial information - as set out by the Task Force on Climate Related Financial Disclosures (with the aim of helping investors measure and respond to climate risk).
Encourage higher ESG standards through stewardship activity
A core element of these funds will aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity Fund Governance
ESG integration strategy
Find funds that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature.
ESG factors included in Assessment of Value (AoV) report
Environmental, social and governance issues are part of this fund’s reporting of their ‘value’ to clients. AoV reporting is a statutory requirement. Including ESG factors in its calculation is not. Asset Size
Invests mostly in large cap companies / assets
Find funds that have SRI strategies and focus their investment stock selection on larger companies. (e.g. over circa £5-£10bn) Targeted Positive Investments
EU Sustainable Finance Taxonomy holdings 5-25% of fund assets
Find funds that have calculated the proportion of fund asset that meet the new EU Taxonomy requirements and that they total 5-25% of assets. This will typically require adding up the proportion of each individual company's activity that is regarded as 'green' so that the fund manager can produce an overall total for the whole fund / portfolio. How The Fund Works
Positive selection bias
Find funds that focus on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.
Limited / few ethical exclusions
Find funds with few exclusions - typically for example exclude tobacco or companies that breach commonly adopted standards or norms such as the UN Global Compact.
ESG weighted / tilt
Find funds that invest more heavily in those that have higher ESG ratings/standards or scores and less heavily in companies with lower ESG ratings. Where this is central to a fund's strategy you should expect it to invest in most sectors. Strategies vary.
Data led strategy
Find funds that make stock selection (and ongoing fund management) decisions based on ESG data or company ratings (normally supplied by third parties) rather than focusing on what individual companies do, how they operate or their plans for the future
Significant harm exclusion
Aims to avoid companies that do significant harm. This originates from the EU’s sustainable finance ‘DNSH’ (do no significant harm) work, which is not necessarily used by UK investors.
Assets mapped to SDGs
Find funds that have 'mapped' (reviewed) their investment selection and management strategies to identify which of the UN Sustainable Development Goals (SDGs) the fund is helping to address.
Combines norms based exclusions with other SRI criteria
Find funds that make significant use of internationally agreed 'norms' (e.g. United Nations Global Compact - UNGC - or the UN Sustainable Development Goals - SDGs) as part of their investment selection process alongside additional SRI criteria such as positive or negative stock selection policies and/or stewardship strategies.
Combines ESG strategy with other SRI criteria
Find funds that have an ESG strategy (which is typically focused on avoiding companies that pose environmental, social or governance related risks) with additional criteria such as positive and/or negative screens, themes and stewardship strategies.
Balances company 'pros and cons' / best in sector
Find funds that consider both the 'positive' and 'negative' aspects of company behaviour and make balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas.
Focus on ESG risk mitigation
A major focus of these funds is the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).
SRI / ESG / Ethical policies explained on website
Find funds that have published explanations of their ethical, social and/or environmental policies online (i.e. fund decision making strategies/ buy/sell &/or asset management strategies).
Fund uses unscreened ‘diversifiers’ to help manage risk
Fund invests in assets that have not passed its usual sustainability criteria or screening standards in order to help manage investment risk. This may be limited or significant. See literature.
Do not use stock / securities lending
This fund does not use stock lending for performance or risk purposes. Unscreened Assets & Cash
All assets (except cash) meet published sustainability criteria
All assets held in the fund - except cash - meet the sustainability criteria published in fund documentation. Intended Clients & Product Options
Intended for investors interested in sustainability
Finds funds designed to meet the needs of individual investors with an interest in sustainability issues.
Intended for clients who want to have a positive impact
Finds funds designed to meet the needs of individual investors with an interest in ‘Impact investment funds’ which help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies they regard as beneficial to people and / or the planet. Strategies vary. See fund literature for further information.
Portfolio SRI / ESG options available (DFMs)
Only applicable for DFM’s & portfolio providers. Finds those that offer an SRI / ESG portfolio option
Multiple SRI / ESG portfolio options available (DFMs)
Only applicable for DFM’s & portfolio providers. Find service providers who offer multiple SRI / ESG portfolio options
Bespoke SRI / ESG portfolios available (DFMs)
Only applicable for DFM’s & portfolio providers. Find service providers who offer bespoke ('personalised') SRI / ESG portfolio options Labels & Accreditations
SFDR Article 8 fund / product (EU)
Finds funds classified under Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 8 of the SFDR is a set of requirements that apply to financial products that 'promote' environmental or social characteristics with high governance also. These rules do not currently apply to UK funds so many managers may leave this field blank.
ACT signatory
A voluntary corporate culture standard for investment managers, see https://www.investorsact.com/ - City Hive Fund Management Company InformationAbout The Business
Responsible ownership / stewardship policy or strategy (AFM company wide)
Finds fund management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
ESG / SRI engagement (AFM company wide)
Find fund management companies that actively encourage higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Vote all* shares at AGMs / EGMs (AFM company wide)
Find fund managers that vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' demonstrating their support for or disagreement with management policy. (*situations can legitimately, occasionally occur where voting proves impossible, but in principle all shares should be voted.)
Responsible ownership / ESG a key differentiator (AFM company wide)
Find fund managers that consider responsible ownership and ESG to be a key differentiator for their business.
Senior management KPIs include environmental goals (AFM company wide)
The leadership team of this asset manager have performance targets linked to environmental goals.
SDG aligned aims / objectives (AFM company wide)
Find fund management companies that aim to align all their investments (across all funds) to help meet the aims of the UN Sustainable Development Goals.
Responsible ownership policy for non SRI funds (AFM company wide)
Find funds run by fund managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies they invest in across funds (not normally limited to ethical or SRI options.) Read fund literature for further information.
Integrates ESG factors into all / most (AFM) fund research
Find fund management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
In-house diversity improvement programme (AFM company wide)
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Diversity, equality & inclusion engagement policy (AFM company wide)
Find fund management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).
Vulnerable client policy on website (AFM company wide)
Asset manager has information on their website that explains how they treat 'vulnerable clients' (as set out in FCA regulation)
Invests in newly listed companies (AFM company wide)
This asset management company invests in companies which have recently listed on a stock exchange (which is important as it can help grow new businesses).
Invests in new sustainability linked bond issuances (AFM company wide)
Asset management company has investments in bonds designed to meet sustainability requirements - however these assets may not be 'ringfenced' for this purpose. See fund manager website for details.
Offer structured intermediary training on sustainable investment
Fund management entity offers unstructured intermediary training on sustainable investment (ie for financial advisers and wealth managers)
Offer unstructured intermediary sustainable investment training
Fund management entity offers unstructured intermediary training on sustainable investment (ie for financial advisers and wealth managers) Collaborations & Affiliations
PRI signatory
Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
UKSIF member
Find fund management companies that are members of UKSIF - the UK Sustainable Investment and Finance association
TNFD forum member (AFM company wide)
A member of the Taskforce for Nature Related Financial Disclosures group which aims to aid risk management and shift money towards nature-positive outcomes.
Investment Association (IA) member
Fund management entity is a member of the Investment Association https://www.theia.org/ Resources
In-house responsible ownership / voting expertise
Find fund management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Employ specialist ESG / SRI / sustainability researchers
Find a fund management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Use specialist ESG / SRI / sustainability research companies
Find fund management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
ESG specialists on all investment desks (AFM company wide)
Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types) Accreditations
PRI A+ rated (AFM company wide)
Finds organisations / fund managers that have an A+ PRI rating - meaning they are highly rated according to the 'Principles of Responsible Investment'
UK Stewardship Code signatory (AFM company wide)
Find fund managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where fund managers are encouraged to behave like responsible, typically longer term 'company owners'. Engagement Approach
Regularly lead collaborative ESG initiatives (AFM company wide)
Find fund management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
Encourage responsible corporate taxation (AFM company wide)
Find fund management companies that are working with the companies they invest in to encourage more responsible corporate taxation.
Engaging on climate change issues
Fund manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Engaging with fossil fuel companies on climate change
Asset manager has a stewardship /responsible ownership strategy that involves working with fossil fuel companies on climate change related issues. See fund manager website for details.
Engaging to reduce plastics pollution / waste
Asset manager has stewardship /responsible ownership strategy with involves encouraging investee asset to reduce plastic waste and pollution.
Engaging to encourage responsible mining practices
Asset manager has a stewardship / responsible ownership policy that means they are working to encourage more responsible mining practices - where environmental and social issues are properly dealt with by the companies they invest in.
Engaging on biodiversity / nature issues
The asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global
Engaging to encourage a Just Transition
Asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/
Engaging on human rights issues
Asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards
Engaging on labour / employment issues
Asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)
Engaging on diversity, equality and / or inclusion issues
Asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets
Engaging to stop modern slavery
working with the assets they hold to help stamp out modern slavery - where direct or indirect company employees are exploited for business benefits.
Engaging on governance issues
Fund managers have stewardship strategies in place that focus on improving governance standards across investee assets
Engaging on mental health issues
Asset manager has stewardship strategy in place which involves discussing mental health issues with investee companies - with the aim of raising standards
Engaging on responsible supply chain issues
Has a stewardship / responsible ownership strategy that encourages responsible supply chain - ie the managers will discuss environmental, social and governance issues with investee companies with the aim of raising standards
Engaging on the responsible use of AI
Working to address sustainability, ESG and related concerns around artificial intelligence.
Stewardship escalation policy
Escalation policies describe how a manager will proceed if stewardship / engagement activity is not successful in the short term. Company Wide Exclusions
Controversial weapons avoidance policy (AFM company wide)
Find fund management companies (not funds) that avoid investment in 'controversial weapons' across all of their funds and other investment vehicles.
Review(ing) carbon / fossil fuel exposure for all funds (AFM company wide)
Find funds / fund managers that are reviewing, or have reviewed, their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. (Typically with reference to climate change.) Climate & Net Zero Transition
Net Zero commitment (AFM company wide)
Fund management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
Voting policy includes net zero targets (AFM company wide)
Fund manager AGM / EGM voting strategy has processes in place that mean they will normally be expected to vote in a way that will encourage the transition to net zero greenhouse gas emissions.
Publish 'CEO owned' Climate Risk policy (AFM company wide)
Find fund management companies that have published a Climate Risk policy or statement that is signed / owned by their Chief Executive.
Net Zero - have set a Net Zero target date (AFM company wide)
This asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
Encourage carbon / greenhouse gas reduction (AFM company wide)
Find fund management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
Carbon transition plan published (AFM company wide)
Finds organisations / fund managers that have a company wide carbon transition plan - meaning that they have plotted a path to how they will move away from activities that produce or use carbon based energy sources (that emit greenhouse gases) towards clean, alternative, renewable energy sources.
‘Forward Looking Climate Metrics’ published / ITR (AFM company wide)
Finds organisations / fund managers that have published ‘forward looking climate metrics’ e.g. 'implied temperature rise' data that are a total of the asset management company's share (% owned) of all the investee company emissions of the assets they manage, as well as their own direct and other indirect emissions.
Carbon offsetting - offset carbon as part of our net zero plan (AFM company wide)
This asset management company plans to achieve net zero greenhouse gas (CO2e) emissions with the help of a scheme that will lock away an amount of carbon that is equivalent to the company’s own emissions – so that the end result is ‘net zero’. Calculations and scope vary.
In-house carbon / GHG reduction policy (AFM company wide)
Find fund management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.
Working towards a ‘Net Zero’ commitment (AFM company wide)
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to'zero'. Transparency
Publish responsible ownership / stewardship report (AFM company wide)
Find fund management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Full SRI / responsible ownership policy information on company website
Find companies that publish information about their sustainable and responsible investment strategies on their company website.
Full SRI / responsible ownership policy information available on request
Find fund management companies that will supply information about their sustainable and responsible investment activity on request.
Publish full voting record (AFM company wide)
Fund management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.
Sustainability transition plan publicly available (AFM company wide)
This asset management company has published a plan that explains how they are to become a sustainable business - without significant negative environmental or social impacts.
Paris Alignment plan publicly available (AFM company wide)
This asset management company has published a plan that explains how they will align to the climate change commitments made at the Paris Climate Talks, COP21.
Net Zero transition plan publicly available (AFM company wide)
This asset management company has published a plan that explains how they are going to achieve net zero greenhouse gas / CO2e emissions.
Dialshifter statement
Find fund management companies that have supplied Dialshifter information. See Dialshifter tab within record for more information. Sustainable, Responsible &/or ESG Policy:The Global Equity ESG strategy seeks best-in-class companies within their specific industry or those that are showing positive ESG momentum, but does not explicitly exclude any companies. Rather than exclude specific sectors or industries, the team avoids certain behaviours. These behaviours include the manufacture of harmful and unsustainable products, e.g. tobacco, and exposure to severe ESG risks that may prompt material fines or regulatory consequences, e.g. companies deemed to be in breach of the UN Global Compact. Exclusions: Outside of the firm-wide exclusions list on controversial weapons, the Global Equity ESG strategy does not exclude a predefined list of companies. Instead, the team takes into account negative signals, including certain products or behaviours that are considered unsustainable. This can lead to exclusion of certain business lines and practices including:
Consideration is also given to the engagement activity that is carried out by the EOS team around key issues to encourage better management of material environmental, social and governance risks Process:Assessment of the ESG characteristics of a company is a vital part of the team’s investment approach and the team uses ESG research in both proprietary models and in discussion with our in-house ESG experts, EOS. The team has built a bespoke quantitative assessment of the most important ESG issues, the QESG Score, which evaluates a company’s ESG characteristics and identifies positive ESG change. The team believes that companies less exposed to ESG risks than peers will outperform over the long term. Further, it believes that companies that are improving their ESG profile through positive change can unlock significant shareholder value. The QESG Score is designed to capture a company’s behaviour on various ESG issues, as well as observed change in its ESG behaviour. The score combines data from EOS, Sustainalytics, MSCI, CDP, ISS, Trucost, FactSet and Bloomberg and is weighted 50% governance factors, 25% environmental factors and 25% social factors; the score is shown in the ESG Dashboard. The weightings used are based on the expertise of the EOS team. Following research into the growing impact of ESG factors, the team found a significant correlation between governance and stock performance. The QESG Score is a valuable component of the ESG Dashboard, which is used in the subjective part of the process, and provides a concise digest of the ever-increasing amount of data on ESG risks. As such, all of the team’s investments are analysed from an ESG perspective. The expertise of EOS has also helped define the key performance indicators or risk factors on which each company is measured. These are either generic, such as board structure, or sector specific, focusing on the major risks by industry – such as CO2 emissions and fleet consumption for the automobiles industry, paper sourcing for media and energy efficiency for airlines. The team uses it to identify ESG risks within companies and determine the materiality of these risks. Any change in the level of ESG risk and progress on current engagements are key factors that could influence an investment decision. The ESG Dashboard has helped the team further integrate ESG research into investment decisions and foster dialogue with EOS, with whom the team have formal monthly meetings, as well as numerous ad hoc conversations. The Dashboard is accessible through Bloomberg and, as well as its assessment of a company’s ESG characteristics, is further bolstered by the voting and engagement activities of EOS. This collaboration with our stewardship experts ensures the team remains active owners of the companies held in the portfolio. The Portfolio Snapshot offers a portfolio perspective on ESG exposures. This tool reports on ESG characteristics of portfolio holdings (both in absolute and benchmark-relative terms) including voting and engagement data from EOS. The Snapshot also highlights companies with potential controversies and ESG concerns. The tool acts to promote discussion on thematic ESG risks, as well as to identify the best and the worst companies according to various ESG metrics. By thoroughly rating companies on these extra-financial criteria, businesses (and investment managers) can be steered towards greater consideration of the ESG issues. This assessment of ESG factors helps the team reinforce its view of the sustainability of a company and is consistent with their long-term approach and helps ensure that turnover remains low. The ESG integration approach adopted by the team is complemented by direct dialogue with businesses that is made possible through EOS, which ensures the team remains active owners of the companies held in the portfolio. The team also has access to a range of proprietary tools, including the Corporate Governance Tool, the Carbon Tool and the Environmental Tool. In addition, our investment teams make use of data related to ESG analysis from several providers, such as MSCI, Sustainalytics, Bloomberg, CDP, ISS, Trucost and Planetrics. Resources, Affiliations & Corporate Strategies:ESG Resources, EOS, Responsibility Office and ESG Specialists: In terms of our ESG-dedicated personnel, Federated Hermes Limited has 75 staff members that are directly involved in ESG integration, as at 31 March 2025. We also have dedicated ESG personnel embedded within our investment teams. The teams are outlined below:
Membership Lists: Federated Hermes is supportive of the development of codes and standards relating to responsible business conduct and responsible investment to aid transparency and accountability. We adhere to a number of responsible business conduct codes and internationally recognised standards for due diligence and reporting:
We are also members of a wide range of industry initiatives through which we seek to advance industry best practice, collaborate with other investors to achieve shared engagement and advocacy outcomes and ensure we remain at the forefront of best practice. We provide an annual update of our external memberships in our Stewardship Report, available via the link: https://www.hermes-investment.com/uploads/2025/05/a4e349bde8a792ace67777de1b554221/federated-hermes-limited-stewardship-report-2025.pdf [1] Note: The SDG Engagement Equity Strategy includes the Federated Hermes Global SMID Equity Engagement Fund. Dialshifter (Fund)This fund is helping to ‘shift the dial from brown to green’ by… The ESG characteristics of companies are reflected in the team’s proprietary assessment of ESG performance, the QESG Score. These scores reflect the current behaviour of companies and how the former are improving. Selected stocks are then subjected to a disciplined subjective analysis, which seeks to validate the models results and assess macro and ESG risks. The result is a portfolio with exposure across the style spectrum that favours best-in-class companies alongside those whose ESG profile is improving. Dialshifter (Corporate)Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by… We trust companies have set their net-zero pledges in good faith and we look for interim targets and goals to better understand their pathways to net-zero. We acknowledge the challenge around the alignment of net-zero time-lines for commitments. To address this challenge, we look for explicit short- and medium-term targets that are sufficiently ambitious so that the company’s decarbonisation profile is aligned with the temperature degree rise goals of the Paris Agreement( ie 1.5 degrees,). We are signatories to the Net Zero Asset Managers initiative. We have committed to support the goal of net-zero greenhouse gas emissions by 2050. SDR Labelling:Not eligible to use label Fund HoldingsVoting RecordDisclaimerThe value of investments and income from them may go down as well as up, and you may not get back the original amount invested. Any investments overseas may be affected by currency exchange rates. Past performance is not a reliable indicator of future results and targets are not guaranteed. For professional investors only. This is a marketing communication. It does not constitute a solicitation or offer to any person to buy or sell any related securities, financial instruments or financial products. No action should be taken or omitted to be taken based on this document. Tax treatment depends on personal circumstances and may change. This document is not advice on legal, taxation or investment matters so investors must rely on their own examination of such matters or seek advice. Before making any investment (new or continuous), please consult a professional and/or investment adviser as to its suitability. Any opinions expressed may change. All figures, unless otherwise indicated, are sourced from Federated Hermes. Whilst Federated Hermes has attempted to ensure the accuracy of the data it is reporting, it makes no representations or warranties, expressed or implied, as to the accuracy or completeness of the information reported. The data contained in this document is for informational purposes only, and should not be relied upon to make investment decisions. Federated Hermes shall not be liable for any loss or damage resulting from the use of any information contained on these pages. All performance includes reinvestment of dividends and other earnings. Please consider all strategy characteristics when investing and not just ESG characteristics. Federated Hermes refers to Federated Hermes Limited (“Federated Hermes”). The main entities operating under Federated Hermes are: Hermes Investment Management Limited (“HIML”); Hermes Fund Managers Ireland Limited (“HFMIL”); Hermes Alternative Investment Management Limited (“HAIML”); Hermes Real Estate Investment Management Limited (“HREIML”); Hermes Equity Ownership Services Limited (“EOS”); Hermes Stewardship North America Inc. (“HSNA”); Hermes GPE LLP (“Hermes GPE”); Hermes GPE (USA) Inc. (“Hermes GPE USA”); Hermes GPE (Singapore) Pte. Ltd (“HGPE Singapore”); Federated Investors Australia Services Pty Ltd. (“FIAS”); Federated Hermes Japan Ltd (“FHJL”); Federated Hermes (UK) LLP (“FHUK”) and Rivington Energy (Management) Limited (“REML”). FHL is the majority shareholder in REML. FHUK, HIML, HAIML and Hermes GPE are each authorised and regulated by the Financial Conduct Authority. HAIML and HIML carry out regulated activities associated with HREIML. FHUK, HIML, Hermes GPE and Hermes GPE USA are each a registered investment adviser with the United States Securities and Exchange Commission (“SEC”) and HAIML and HFMIL are each an exempt reporting adviser. HGPE Singapore is regulated by the Monetary Authority of Singapore. FHJL is regulated by Japan Financial Services Agency. FIAS holds an Australian Financial Services Licence. HFMIL is authorised and regulated by the Central Bank of Ireland. REML, HREIML, EOS and HSNA are unregulated and do not engage in regulated activity. In the European Economic Area (“EAA”) this document is distributed by HFMIL. Contracts with potential investors based in the EEA for a segregated account will be contracted with HFMIL. 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. Telephone calls may be recorded for training and monitoring purposes. 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