Hermes Investment Management and its stewardship and engagement team, EOS, have welcomed the launch of the Brazilian Stewardship Code, which they see as a significant step towards the development of a culture of stewardship among institutional investors in Brazil.
The code was drafted by a working group including members of AMEC, the Brazilian capital markets association, and a representative of EOS.
The process began in January 2016 and included a benchmarking of international stewardship codes, interviews with local and international asset managers and owners, and a public consultation.
EOS was the only non-resident member of the working group drafting the code.
Saker Nusseibeh, chief executive, Hermes Investment Management, says: “Hermes continues to be an industry leader in stewardship and responsible investment. The launch of a stewardship code in Brazil demonstrates that momentum for stewardship continues to grow globally. Moreover, they will move responsible investment up the agenda of investors, enhance the relationship between local companies and their shareholders and thus ensure adequate accountability along the investment chain, while improving corporate governance and behaviours.”
Dr Hans-Christoph Hirt, co-head of EOS, Hermes Investment Management, says: “Hermes continues to support the development and implementation of stewardship guidelines globally. Over time, such guidance will make an important contribution to the development of stewardship activities of institutional investors around the world, which is a key factor in enhancing the corporate governance of companies they invest in. We believe that better governed companies produce superior and more sustainable returns for investors and benefit all stakeholders.”
Assisting in the development of global stewardship guidance for institutional investors complements the company-specific voting and engagement work EOS undertakes on behalf of a group of 42 clients globally.
