Introducing the Federated Hermes Impact Database In our view, it is imperative that all investee companies generate a positive impact that can be measured quantitatively, as well as qualitatively. As such, we invested considerable time and resource in the second half of 2020 to create our proprietary Impact Database, which enables us to quantify the impact of companies held within our portfolio. The Database also provides a clear framework for us to assess companies on our watchlist. Why? After looking at the tools available in the market to analyse impact data, we did not believe that any one provider had the depth of understanding and granularity we required at a company level. Indeed, the majority of pre-existing tools used aggregate modelling and artificial intelligence (AI) insights that, while impressive, at times yielded inaccurate and incomplete results for individual companies.