Managers Are Losing Europe Mandates Over ESG, FHI CEO Says (1)

Money managers that retreat from sustainable investment pledges are increasingly being turned away when they pitch themselves to major asset owners in Europe, according to the chief executive of Federated Hermes Inc.

“What we’ve noticed is that in the request-for-proposal stage and in the final stage, some people get knocked down for having shifted how they think about things,” Federated Hermes CEO Chris Donahue said in an interview.

Europe’s investment market has been rocked this year by news of major mandates being shifted away from asset managers due to concerns they’re not sufficiently incorporating environmental, social and governance goals.

Chris Donahue.

Source: Federated Hermes