Engagement case study: ANTA Sports Products – Federated Hermes Limited

How Federated Hermes Limited engaged with a China-based sportswear company.

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... ANTA Sports Products Ltd (Anta) is a sportswear company principally engaged in design, R&D, manufacturing, marketing and sales of professional sports products including footwear, apparel and accessories. The company is based in China, and has a diversified portfolio of brands, including ANTA, Fila, Descente, Kolon Sport and recently acquired Jack Wolfskin.

In 2022, the ANTA's supply chain rating was downgraded following accusations of employment in its supply chain associated with labour rights risks, which could threaten the company’s reputation and sales. Meanwhile, the company’s climate change strategy appeared limited, exposing the company to financial and reputational risks. In addition, a range of indicators suggested the board might need more diversity and independence to best address its business challenges.

Federated Hermes Limited suggested the company set science-based targets for Scope one, two and three emissions in alignment with the Paris Agreement goals, ideally accredited by the science-based targets initiative. In addition, they discussed how the company could develop its decarbonisation strategy under the national carbon neutrality target commitment.

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