Initially, the program will be available to UK investors, but it could eventually expand to all fund shareholders.
The prospect of providing clients with a custom portfolio that meets their guidelines is something advisers see as adding value to their services.
The firm's president says sustainable investing is a long-term approach: 'We try to invest in the next economy rather than the last economy.'
Some view it as a political issue, but demand is strong, and asset managers appear undeterred.
Products that have high sustainability scores but aren't necessarily labeled as ESG are cheaper, according to a YCharts report.
Federated Hermes has indicated that it will end membership of the State Financial Officers Foundation.
The ESG product would seek to expand disaster coverage and provide pricing transparency.
The unit, Transition Capital, is part of BlackRock Alternatives and will be led by Dickon Pinner, former head of McKinsey Sustainability.
The asset management firm is doing better on disclosure but has a long way to go, activist group says.
The final rule is coming out at a time when sustainable investing has become a political flashpoint.
