Climate Resilience Strategy for Real Estate Investment

This document is a technical report detailing Federated Hermes' approach to climate resilience within its real estate investments. It outlines the company's commitment to achieving net zero carbon emissions by 2035 and describes the strategies for mitigating climate change impacts through adaptation and disclosure. The report defines climate resilience in the context of real estate and discusses the implementation of a Climate Adaptation Plan that assesses physical risks associated with climate change, such as flooding and extreme weather events. It highlights the use of tools like the MSCI CVAR and Climate X for risk assessment and management. The document also presents progress on decarbonization efforts, including metrics on greenhouse gas emissions and the performance of the portfolio against net zero targets. The report emphasizes the importance of transparency in disclosing climate-related information to stakeholders, ensuring that the company's strategies align with best practices in sustainable investment.