Hermes Equity Ownership Services Limited (EOS at Federated Hermes) is a dedicated specialist engagement provider for the UKRF’s DB assets. The UKRF benefits from the stewardship expertise and resource of EOS at Federated Hermes. With the help of EOS at Federated Hermes, the Trustee is engaging with investee entities, regulators and markets on a more proactive basis.
EOS’s engagement strategy is guided by three core principles:
Relationship and influence
EOS advises on more than $2 trillion in assets, representing pension funds and large institutional investors, providing significant leverage in corporate engagement, with advisory oversight on substantial global assets. The engagement team builds long-term relationships with company boards and executive teams to drive meaningful change.
Client-centred stewardship
EOS prioritises the needs of its clients, aligning its stewardship activities with their investment strategies. This ensures that engagement efforts contribute to financial resilience, corporate responsibility and risk mitigation.
Tailored, impact-driven engagement
Each engagement is tailored to the specific company, sector and market context. EOS takes a long-term approach addressing the most material ESG risks and opportunities through constructive, objectives-driven dialogue at the highest corporate level.
Key engagement themes
EOS focuses on a range of ESG priorities that are fundamental to responsible investing. Engagement efforts are structured around the following key themes:
- Climate and environmental responsibility – EOS works with companies to promote ambitious climate transition strategies including emissions reduction targets aligned with international sustainability commitments. The engagement team engages with companies to ensure they adopt best practices in decarbonisation, renewable energy and responsible resource management.
- Human and labour rights – by advocating for ethical labour practices, fair wages, and supply chain accountability, EOS supports companies in fostering equitable working environments and upholding global human rights standards.
- Corporate governance and board effectiveness – strong leadership and governance structures are pivotal for long-term growth. EOS engages with companies’ board diversity, executive accountability, and governance best practices to enhance corporate oversight and resilience.
Sustainable resources stewardship
More recently, EOS has expanded its engagement themes, focusing on natural resource stewardship, including biodiversity. Depending on the company specific context, engagement will cover issues such as deforestation, water stress, regenerative agriculture, antimicrobial resistance and sustainable proteins and chemical runoff management.
Public policy engagement
Alongside direct engagement, EOS continues to undertake public policy work on behalf of the UKRF through its collaborative work with legislators, regulators, industry bodies and other standard-setters to shape capital markets and ensure a sustainable environment in which companies and investors can operate.