Our commitment to active ownership

Stewardship is an integral part of responsible investment management. Being a good steward means being a responsible owner of companies and other assets.

Video Transcript

Time Transcript
0:02 Amy D’Eugenio, Head of Client Service and Business Development EOS: “Our clients are investors from all over the world, many of whom are pension funds from different countries. We engage systematically with over a thousand companies per year on strategic, financial, material, environmental, social and governance risks and opportunities. What we're really trying to do is look at companies and engage with them so they can be long-term and sustainable for the future.”
0:10 [GRAPHIC ON SCREEN]: $877B assets under advice 12.31.19
0:19 [GRAPHIC ON SCREEN]: Over 1000 companies a year
0:24 Hans Hirt, Head of EOS: “Research suggests that improved ESG performance of companies can lead to enhanced investor returns. We also seek to align the behaviors of companies with the long-term interests of clients and beneficiaries.”
0:39 Amy D’Eugenio: “Stewardship ultimately is good for investors. It's good for society. It's good for the environment. We've intentionally built a really skilled team of international professionals.”
0:46 [GRAPHIC ON SCREEN]: 50 team members
0:48 Hans Hirt: “Former corporate executives, sustainability and strategy consultants, accountants and bankers, lawyers, climate change experts and scientists. So we literally speak the same language. We are able to identify and address the most material risks and opportunities companies are facing, for we're excited about the growth of EOS and the opportunity to increase our influence and impact globally.”
1:15 Amy D’Eugenio: “We're really proud of where EOS has come from, but actually the potential and the future is where we're really excited.”
1:28 [GRAPHIC ON SCREEN]: Federated Hermes copyright 2020 Federated Hermes, Inc. G85051-04

A pioneer in engagement and advocacy

1043
Number of companies engaged
(during 2019)
877 Billion Dollars
Assets under advice
As of December 31st, 2019

Founded in 2004, Hermes EOS became a leader in the evolving field of responsible investing, engaging with company leaders on environmental, social and governance concerns, as well as business strategy and purpose, risk mitigation and company disclosure.

EOS at Federated Hermes will continue these efforts on a global level, helping institutional investors be more active owners of their assets with the goal of increasing the long-term viability and value of their holdings while potentially reducing risk.

A knowledgeable and experienced team

Our engagement specialists have extensive experience, key connections and deep knowledge and understanding of their industries. They engage in face-to-face dialogues and other interactions at the executive and board level of investee companies wherever possible, and vote at annual meetings.

The aim is to improve company governance and align company behaviors with the long-term interests of our clients and their beneficiaries by addressing the most material strategic, financial and environmental, social and governance (ESG) risks and opportunities the company may be facing.

Unlike many in-house engagement teams, our stewardship services are provided separately from investment mandates.

The EOS advantage

Access

Companies understand that EOS is working on behalf of pension funds and institutional investors representing substantial assets. The background of the team’s specialists equips them with the gravitas and credibility to access and maintain constructive relationships with company boards.

Client Centric

EOS surveys the priorities of like-minded investors through consultation to assist EOS in determining the companies and themes of its Engagement Objectives and Plan.

Material Engagement

EOS’ engagement strategies are company-specific and informed by deep understanding across sectors, themes and markets. It seeks to address the most material ESG risks and opportunities through a long-term, constructive, objectives-driven and continuous dialogue at the board and senior executive level. This approach has proven to be effective over time.

The EOS timeline

  • 2004 Hermes EOS established

  • 2006 Hermes leads drafting of UN Principles for Responsible Investment

  • 2010 Hermes Responsible Ownership Principles relaunched

  • 2013 First Remuneration Principles published

  • 2018 Lead & co-lead of the most companies in the Climate Action 100+ Initiative*

*An investor initiative with the goal of ensuring that the world’s largest greenhouse gas emitters take necessary action on climate change.