Hermes debuts fund manager climate risk tool

System will be rolled out to all its fund managers

Hermes Investment Management has launched a new data analysis tool that will calculate a fund's carbon performance and climate risk exposure, in the latest sign of a more climate-friendly mindset taking hold of the industry.

Late last year, Hermes declared that climate change presents a "game-changing opportunity" for the global investment community and promised to play a leading role in the low-carbon transition. Building on this, the asset manager has revealed a new carbon tool that will be rolled out to all its fund managers to help them assess their fund's carbon performance and carbon risk. The tool, which has been a year in development, uses greenhouse gas emissions data from TruCost to assess the carbon impact and associated climate risk of a portfolio, taking into account direct and indirect carbo...