Federated Hermes

No leading practices identified for the financial institution.

The financial institution could disclose how it determines a living wage for the regions where it operates and include anti-bribery and anti-corruption clauses in its contracts with business partners. It is also recommended that the institution provide third-party assurance or verification for its target reporting. Other recommendations include linking senior executive remuneration to specific sustainability targets and disclosing a complete list of trade associations of which it is a member.

While the financial institution monitors emissions for its headquarters, there is no evidence that it tracks scope 1-2 emissions at the group level, nor does it disclose the monitoring of other scope 3 categories by type. Transparency around its footprint calculation methodology is also recommended. Additionally, it could disclose its transition plan covering operations, supply chains, and portfolios, ensuring that emissions reduction targets align with interim goals. It is suggested that it break down its clients by income group and outline processes to prevent divestment from low-income countries as a side effect of sustainability targets.

Further recommendations include integrating risks related to ILO fundamental rights at work into its risk assessments, disclosing mitigation processes for these risks, and identifying social risks tied to the net-zero transition. Lastly, it could provide concrete examples of actions taken based on assessments of salient human rights issues related to its products, services, and capital over the past three years.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.