As a responsible investor and steward of our clients’ capital, it is part of Herman Capital’s fiduciary mission to invest responsibly. We continually seek meaningful understanding on how our investment decisions and activities could generate good financial returns for our clients while paying heed to the wider needs of society through considering the material impacts of ESG factors to the economy, society and the environment as a whole.

Herman Capital’s investments are guided by our core values and our ESG Principles and Priorities. We are cognizant of the complexity in identifying and addressing ESG drivers - many vary across sectors and geographies, and some are inherently subjective and available data may not be of high quality. In such cases we adopt a pragmatic approach, balancing the implications for the economy, society and the environment where available information is not objective or reliable.

We have identified climate change, diversity and inclusion as our ESG priorities, given their importance for the long-term sustainability of all businesses and society as a whole. We have also identified risk factors associated with our ESG priorities and incorporate them into our investment qualification, investment and risk management processes. We believe constructive dialogue and addressing material ESG issues with the companies we intend to invest or we have invested into would bring about positive social, environmental and/or governance changes and developments in these companies. Where we believe engagement has been or will be ineffective in influencing positive change, we may exclude the company from our investments or portfolios.

We review our ESG approach regularly in order to align with changes in the global economy, and the evolution of good practice, sustainability and ethics.