Federated Hermes

Federated Hermes is a signatory of the Principles for Responsible Investment, incorporating ESG issues into investment analysis, decision-making, and other business practices (1)(2). According to the firm, “[Its] strategy for incorporating ESG factors into our investment process is primarily through integration – an approach in which material ESG factors are complementary and additive to the fundamental research and analysis process” (3). However, the company has not publicly canceled customers, suppliers, or vendors based on political views or religious beliefs (4).

Federated Hermes does not appear to discriminate against charitable organizations based on views or beliefs (1).

Federated Hermes appears to prioritize diversity over merit in its hiring and leadership composition by establishing gender targets. Federated Hermes is aiming for at least 50% women in its employment composition, board composition, and senior management (1). The company also “set a goal to at least double the actual number of permanent black employees in our workforce by the end of 2022, and with the most senior levels of management to be held accountable to deliver on these metrics.” The company also pledged to launch an inclusion program for its leaders and managers that covers unconscious bias (2). The company does not provide viewpoint protections for its employees (3).

Federated Hermes Limited was part of the Net Zero Asset Managers initiative, committed to carbon neutrality with its investments by 2050 (1)(2)(3)(4)(5)(6). The company is a member of multiple networks that advocate for diversity and inclusion in the Asset Management industry (7). The company supports DEI within its business practices, employing a DEI Business Partner and describing DEI as “an ethical and business imperative (8)(9). The company is a signatory of the Race at Work Charter and the Change the Race Ratio. The company also released a statement in condemnation of “systemic racism” (10). It advocates for the prioritization of diversity over merit in the board composition of other corporations. From its Public Engagement Report: “We will challenge companies with an aspirational target of 50% overall diversity and consider recommending voting against the chair of the nomination and governance committee where there is not at least 40% overall diversity on the board, with a minimum of 30% women and at least one person of a racially or ethnically diverse background.” The firm also pushed for an independent racial equity audit at Apple in 2022 (11). The company actively encourages shareholders to vote for ESG and DEI proposals (12).

Federated Hermes has not used corporate funds to advance ideological causes, organizations, or policies (1)(2).

Federated Hermes has not used its PAC donations or lobbying for ideological purposes (1)(2)(3).