Hermes Investment Management is to assess and audit the company valuation methodology developed by Oxford, UK-based financial technology company Util, which is intended to provide away to measure companies on social and environmental performance alongside financial performance.
Hermes, which has some £33bn (€37bn) of assets under management and through its EOS business advises on some £336bn (€382bn) of assets, has agreed to assess Util’s methodology which it said would help “identify and steward investments to deliver superior financial and non-financial performance”. The methodology is based on existing globally accepted practices, such as the UN PRI, Integrated Reporting and UN Sustainable Development Goals.
The year-long assessment will see the methodology applied to specific Hermes’ listed equity funds. Also, Leon Kamhi, head of Responsibility at Hermes will join Util’s Advisory Committee.
Kamhi said that effective measurements of social and environmental returns will be key to enabling the investment industry to deliver on, for example, the UN SDGs.
For its part, Stephen Barnett, Util CEO, said the deal with Hermes would enable it to strengthen the methodology.