Introducing the new QESG 3.0: the next generation – Federated Hermes Limited

The Global Equity ESG Pathway team’s assessment of ESG – the QESG Score – is embedded directly within Federated Hermes Limited's stock selection model and is a crucial part of how they determine the expected return of investments. In this paper, the company provide a rundown of what has changed in the next iteration of QESG.

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... Fast reading:
  • The broader philosophy of the score remains the same, in that it remains vital to avoid the worst companies and identify those that are changing for the better.
  • However, the availability of better and more granular data sources has enabled improvements in several key areas.
  • QESG 3.0 builds on Federated Hermes Limited's pioneering ESG research over the past 15 years and demonstrates their continued desire to improve and enhance the company's models and investment process.

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