For pension funds and long term investors, it is important to look beyond the short term focus of the financial markets, which are entirely concentrated on the next quarter's earnings and other immediate financial measures. Hermes believes that good stewardship contributes to superior long−term performance of companies.
As a global pioneer in the field of responsible investment Hermes was the first major institutional investor to establish shareholder engagement programmes. Hermes is unique as a fund manager for its rich heritage in responsible ownership and corporate governance, which is woven into the fabric of its business. Hermes involvement in corporate governance spans over two decades and was inspired by some of the earliest business leaders in the field.
Hermes is the only institutional investor to have a business oriented dialogue which empowers companies to develop their focus on long term growth. HEOS' engagements help businesses to understand and mitigate against the costs of poor social and environmental practices by highlighting the business case for an integrated approach to the management of risks. By framing social, environmental and ethical risk within the wider context of sustainable, long term business performance, HEOS is able to achieve real change for the better through its engagements with investee companies.
All discussions with companies are conducted in complete confidence, this approach has not only proved to be most effective to bring about change, but it also protects pension funds and other long term investors we are working with.
