Sustainable, Responsible &/or ESG Policy:

The fund / strategy focuses on the management of climate related risks. The fund / strategy aims to favour issuers with the lowest carbon profiles within their sectors, encouraging a transition towards a greener environment through the selection of issuers on an improving carbon transition path, and investing in carefully selected green bond issuers. The fund / strategy aims to be proactive in dealing with climate change through continual engagement with global corporate bond issuers. Controversies involving environmental characteristics are regularly monitored. Environmental characteristics are analysed by our fundamental analysts and rated through Fidelity ESG Ratings. The fund / strategy seeks to promote these characteristics by adhering to the Fidelity Sustainable Family Framework.

The fund will aim to have a lower carbon footprint compared to that of the broader market.

Fidelity’s Sustainable Climate Bond Fund aims to:

• Enable real world emissions reduction driven by research-led issuer selection.
• Enable decarbonisation and alpha generation - the fund has a dual focus on climate and financial return objectives.
• Be consistent with the Paris Agreement.
• Encourage decarbonisation through engagement with companies.
• Provide investors with access to a Fixed Income Team with strong credentials managing global investment grade credit.

Additionally, in line with the Fidelity Sustainable Fund Family, the fund applies broader ESG exclusions:

• The fund excludes companies involved in the production and/or distribution of controversial weapons, the use of which is prohibited by international treaties or conventions (including cluster munitions, landmines, biological weapons, chemical weapons, blinding laser weapons, incendiary weapons, non-detectable fragments) and nuclear weapons for non-signatories of the Treaty on the Non-Proliferation of Nuclear Weapons.
• The fund also excludes issuers which the Portfolio Managers consider having failed to conduct their business in accordance with accepted international norms, including as set out in the United Nations Global Compact (UNGC).
• The fund employs further exclusions for production and/or distribution of tobacco, weapons and thermal coal, arctic oil and gas and oil Sands, and may employ further exclusions at the discretion of the Portfolio Managers.

Process:

Our investment process draws on our long-standing experience managing fixed income portfolios combined with a proactive management of climate related risks. The Investment Grade (IG) investment process at Fidelity is designed to ensure that the best investment ideas are identified and incorporated efficiently within client portfolios. In order to successfully deliver performance, Fidelity adopts a team-based approach which combines the strengths and skills of four separate disciplines - portfolio management, credit research, quantitative research, and trading. The Fixed Income Team also draws upon the research of our Equity and Markets Research Team as well as our Sustainability Team. These professionals offer unique insight into companies, the economy and markets. The key steps in the investment process applicable to this fund are described below:

Idea generation

Our investment process is built on the strength of our research platform. We blend fundamental credit, quantitative and trading inputs to build a holistic view of any prospective holding. We have a collaborative team environment in which everyone is encouraged to express views and challenge ideas.

The three inputs into our idea generation process combine to give ideas a Relative Value (RV) which then feeds into the portfolio construction process.

i) Credit research

Our 36* global credit analysts each cover a sector across the ratings spectrum from investment grade through to high yield. They are ultimately responsible for the rating given to their securities and will incorporate views on an issuer’s climate credentials in their analysis. This enables the identification of sector trends at the earliest opportunity, and to also pinpoint potential 'rising stars' (companies likely to move from high yield to investment grade) and 'falling angels' (investment grade companies likely to be downgraded to high yield territory). The analysts collaborate with equity research, ESG analysts and macro research to develop a more holistic understanding across the capital structure.

Investment ideas from our Credit Team are communicated and prioritised using our RV scoring methodology. Each analyst screens their universe to determine which companies receive which level of coverage (alpha, beta, or credit bench).

The credits are analysed and compared across sectors and are each awarded a Fundamental Rating (a forward-looking assessment of credit fundamentals), a Fundamental Outlook, and an RV score (1 Buy - 5 Sell). ESG is also taken into account at this stage. ESG is embedded into our investment research process and is carried out at the fundamental research analyst level. Established in 2019, the Fidelity's proprietary ESG Ratings is designed to generate a forward-looking and holistic assessment of a company’s ESG risks and opportunities, based on sector-specific key performance indicators across approximately 130 subsectors (previously: 99) individual and unique sub-sectors.

*Source: Fidelity International, as at 31 March 2024. Excludes investment graduates and includes Toronto-based analysts, who are part of Fidelity Canada Investment Management (FCIM). FCIM is an affiliated entity of FIL Limited.

ii) Quantitative research

Our 6* strong quantitative research team has developed in-house models to generate relative value trade ideas, tools to help screen the universe, and automated emails to flag behavioural changes in company metrics or changes in bond valuations versus equity or Credit Default Swap (CDS) pricing.

iii) Trading

The 21* fixed income traders that make up the team are organised into groups of sector specialists. They ensure efficient and low-cost execution, in addition to providing idea generation based on their market knowledge and experience. The trader’s participation in any pre-trade discussion is vital, as they will know where to source (or find bids) for bonds and will offer alternative trade ideas if the proposed trade pricing becomes prohibitive. They also help the credit analyst determine the RV rating for each bond.

While the credit analysts, quantitative analysts and traders all have responsibility for their respective inputs into the stock selection process, they will discuss their ideas with the Global Investment Grade Team, who have ultimate responsibility for inclusion of any credit in the portfolio.

*Source: Fidelity International, as at 31 March 2024. Excludes investment graduates and includes Toronto-based analysts, who are part of Fidelity Canada Investment Management (FCIM). FCIM is an affiliated entity of FIL Limited.

Defining the investable universe

Our starting investable universe is the Global Corporate (investment grade) market, which represents 14,000+ bonds. A combination of our credit and equity research coverage and third-party data allows us to capture most of this investment universe. A representative Sustainable Climate bond portfolio would hold bonds from 100-160 issuers.

All the positions in the portfolio will be assessed based on the following criteria:

• Companies that are adopting decarbonisation practices and tools faster than their peers - We are looking for companies with leading climate practices within their sector and in approach to decarbonisation.
• Companies that are from sectors with high emissions impact that cannot be ignored - We are looking for companies with clear decarbonisation targets that are aligned with Net Zero ambitions and/or a clear strategy to pursue alternative low-carbon technologies.
• We also invest in Labelled Bonds from selected companies that fit the above two categories, where we believe the issuer of the labelled bond is credible in terms of carbon emissions profile and which we believe, add to a company’s overall transition story.

Example of assessment criteria - Climate leadership

• Leading climate practices/governance within their sector.
• Measurement and reporting of carbon emissions.
• Clear decarbonisation strategy.
• Emissions on a sector specific metric below average and ideally bottom quartile.
• Looking towards Scope 3 targets.

Example of assessment criteria - Climate transition 

• Companies from high emissions sectors with a clear climate strategy.
• Clear decarbonisation targets that are aligned with Net Zero ambitions.
• Ideally seeking externally validated targets such as by Science Based Target Initiative.
• Alignment of management incentives with sustainability goals.
• Ongoing engagement.

Example of assessment criteria - Green bonds/Social/Sustainable

• Alignment with the Green Bond Principles
  • Use of proceeds: Green Projects that provide clear environmental benefits, which will be assessed and, where feasible, quantified by the issuer.
  • Project evaluation: Objectives of the bond, the process and eligibility criteria by which the issuer determines the bond to be eligible as a green bond must be clear.
  • Management of proceeds: Financing from the bond should be credited to a specified sub-account and ear marked specifically for Green Projects.
  • Reporting: Issuers need to keep readily available and up to date information on the use of proceeds.
• We apply additional specific eligibility criteria for low-carbon and climate resilient projects and assets.
• Preference for Climate Bonds Initiative aligned issuance but not exclusively.

Example of assessment criteria - Sustainable linked bonds

• Alignment with broader corporate sustainability objectives.
• Materiality of coupon step.
• Appropriateness of time horizon.

Another important aspect of our process is to continuously engage with the companies we invest in. Our stock and credit analysts are the starting point of ESG engagement with the issuers, and they will flag if there is an area of required engagement. In addition, the Sustainability Team at Fidelity International (Fidelity) will also have separate engagement calls and meetings, focusing on our current engagement themes (transition to a low carbon economy, waste and the circular economy, human rights in supply chains, gender diversity on corporate board, data privacy and security, and remuneration). If a company we have selected on the basis of having a credible decarbonisation plan fails to meet its objectives, it will become a candidate for exclusion. This is an important element as we believe it is important to maintain high standards of all selected issuers meeting their impact targets.

Additional information on Fidelity’s engagement approach can be found at - https://eumultisitev4prod-live-eb461540d2184169bb77db2b062d9318-f268f99.s3-eu-west-1.amazonaws.com/PI%20UK/pdf/legal/fidelity-engagement-policy.pdf

Portfolio construction

Position sizing

A combination of climate profile and fundamental credit analysis views are used to build the portfolios. We size positions with reference to their credit rating band and their RV rating assigned by our credit analysts, as well as the companies’ carbon profile. We also take into account issuance size, maturity and currency. Positions in different bonds issued by the same entity are aggregated together, to give a genuine view of risk to one company.

Execution

Transactions are directed by the investment team through a global trading platform.

Buy/sell discipline

Buy trades require a rating of RV1, 2 or 3. Trades must also meet climate leadership or transition leaders’ criteria and labelled bonds must meet additional requirements. Bonds rated RV4 or 5 should be considered for sale as no longer hold value. There are two possible reasons why the rating could be downgraded and in turn sold:

• The credit has deteriorated, and the investment case changed
• The bond has performed well, and is no longer attractive relative to the opportunity set, with better value found elsewhere

In addition, candidates for sale include issuers whose carbon transition profiles are not satisfactory. For instance, if an issuer has committed to carbon reduction targets but fails to meet or commit to these targets, we would review their eligibility into the fund.

Risk management

The Portfolio Construction and Risk (PCR) Team is an integral part of the Fixed Income Investment Team and its members report into the Chief Investment Officer (CIO) of fixed income. PCR is represented at all investment strategy meetings and play an active role in every aspect of the process. Our risk processes follow a three lines of defence model in adherence with a robust risk management framework.

First level

Investment team: Portfolio Managers use desktop risk management systems on a daily basis to analyse risk within portfolios. Reports typically include measures of tracking error, volatility, concentration, credit quality and other relevant measures.

Portfolio Managers are responsible for building portfolios that are consistent with the risk expectations and investment guidelines of our clients.

Portfolio Construction and Risk Team: This team helps Portfolio Managers understand and manage the risks associated with their portfolios through the provision of reporting and expertise.

Quarterly Fund Review (QFR): The CIO/head of asset class meets with portfolio managers to discuss their respective portfolios in detail. During the meeting, factors such as the portfolio’s structure, turnover, trading activity, risk profile, performance, and level of active money are analysed.

Quarterly Sustainability Review (QSR): The QSR is designed to place additional scrutiny on the way that sustainability factors are being integrated and monitored at the fund level. A wider and deeper review of environmental, social and governance factors, as well as our stewardship activities (including engagement and voting) will thus be formally performed on a quarterly basis.

Second level

Investment risk team: This team ensures that material investment risks are adequately covered and understood by senior management and the board. The team provides risk metrics to support Compliance, senior management and other stakeholders.

Compliance: This function reviews all trades daily for asset eligibility and to ensure portfolios stay within their investment parameters. It also monitors trades to ensure best execution in the market, including appropriate pricing and timeliness.

Furthermore, Fidelity operates a network of shared first and second line Investment Risk Committees (IRCs) across the firm to support each asset class and specific Investment Management Teams.

Fund Counterparty Risk Committee (FCRC): The FCRC is responsible for ensuring all risks associated with derivatives and counterparty exposures are continuously assessed and that an appropriate control environment is implemented by line management.

Fund Liquidity Risk Committee (FLRC): The FLRC is responsible for reviewing appropriateness of risk mitigations when Fidelity’s funds exceed agreed internal liquidity thresholds as well as reviewing and approving the Fund Liquidity Risk Framework.

Third level

The Internal Audit function provides an independent review of all risk functions as per regulatory requirements.

Resources, Affiliations & Corporate Strategies:

At Fidelity, we are dedicated to achieving the best possible risk-adjusted returns for our investors. We believe that high standards of corporate responsibility generally make good business sense and have the potential to protect and enhance investment returns. Consequently, we integrate ESG issues into our research and investment decision-making process; we believe it has the potential to affect the long-term value of the investment.

Our integrated ESG approach is relevant across all asset classes, sectors and markets in which we invest.

ESG integration is carried out at the fundamental research analyst level within our investment teams, primarily through the implementation of Fidelity's proprietary ESG Rating. This rating leverages our internal research capabilities and our engagement with companies to inform our view on a company’s sustainability credentials. Please refer to our response to question B6 for detailed information on Fidelity’s proprietary ESG Rating and other proprietary tools that support our internal research process.

The cornerstone of our investment approach is bottom-up research. As well as studying financial results, our portfolio managers and analysts are dedicated to carrying out additional qualitative analysis of potential investments. They visit companies in person, examining everything that could have an effect on its business, from the shop floor to the boardroom. Customers and suppliers also come in for scrutiny. In this way we can develop a 360-degree view of every company in which we invest and ESG factors are regularly considered in this research process.

Our approach to integrating ESG aspects into our investment processes is detailed in the following policies, with all documents accessible via the following website: https://professionals.fidelity.co.uk/sustainable-investing/our-policies-and-reports:

Sustainable Investing Principles: The document sets out the guiding principles and minimum requirements for Fidelity’s sustainable investing activities across asset classes and geographies. The Sustainable Investing Principles build on our beliefs to set out our sustainable investing frameworks, our approach to sustainable client solutions, exclusions, investment stewardship and engagement, the integration of ESG risks and opportunities across our investment management process, and an overview of compliance with regional sustainability regulations.

Exclusion Framework: Our Exclusion Policy forms part of our sustainable investment policy and defines the main requirements for an effective exclusion framework applicable throughout the organisation.

Engagement Policy: Our Engagement Policy sets out how Fidelity undertakes stewardship and shareholder engagement across our listed equity and fixed income holdings.

Voting Policy: Our sustainable investing voting principles and guidelines document provides information on how we exercise ownership rights through voting to improve sustainable business behaviour and client returns.

Climate Investing Policy: Our Climate Investing Policy details how we plan to work with stakeholders to reduce climate risk across all investment strategies in a way that aligns with our foundation in active, bottom-up research.

We use a combination of internal and external resources.

Internal

The bulk of the engagement and analysis is carried out by our research analysts who strive to go beyond studying just financial results and look to incorporate ESG and other factors into a measured viewpoint. They are supported by our team of 38* sustainable investing specialists who engage with companies on issues like corporate governance (for example, board structure, executive remuneration), shareholder rights (for example, election of directors, capital amendments), changes to regulation (for example, green house gas emissions restrictions, governance codes), physical threats (for example, extreme weather, climate change, water shortages), and so on. Our sustainable investing specialists engage with senior management of investee companies as well as their Socially Responsible Investment (SRI) / ESG professionals. They access external ESG-themed research as well as the company ratings based on ESG factors that an external vendor produces.

Fidelity has developed a proprietary ESG Rating Framework, leveraging our internal research and interactions with issuers. The rating is designed to generate a forward-looking and holistic assessment of ESG risks and opportunities. Analysts qualify the direction of change of companies’ ESG performance (positive, neutral or negative trajectory). The ESG ratings and full company reports are accessible on our centralised research management system, Fidelity Insight, so that each analyst has a first-hand view of how each company under their coverage is rated according to ESG factors. In addition, ESG ratings are included on our analyst research notes. These notes are published internally on Fidelity Insight and form an important part of our investment decision.

Fidelity has also developed an SDG mapping tool, which provides the percentage of an entity’s or portfolio’s alignment with each SDG, and where relevant the underlying targets and indicators. This provides a quantitative, transparent, and consistent approach to measuring the alignment of portfolios against the underlying targets and indicators behind the SDGs.

Additionally, we have been developing our proprietary Climate Rating which utilises our fundamental research capabilities to identify climate risks, net zero investments and targets for transition engagement within the Fidelity investment universe. It assesses which companies are in the best position to transition to net zero, or have a positive trajectory towards transition.

The Climate Rating is designed to complement our broader ESG Ratings, which already incorporate climate change factors.

Climate Ratings have been assigned to over 2,000 issuers so far, with the objective to further scale up this coverage over time. We will use various approaches, including the Climate Rating, to set individual fund decarbonisation targets appropriate to each fund’s investment strategy and universe. We will gradually increase targets to reach 100% alignment with the Paris Agreement in every fund by 2050.

Carbon emissions data is available via Insight and is accessible to all analysts and portfolio managers. This data includes (but is not limited to) portfolio carbon emissions and intensity, weighted average carbon intensity, top emitting holdings, emissions attribution analysis, scenario analysis, physical risk assessment, fossil fuel reserves and green/brown share of electricity generation (from held utilities).

*Source: Fidelity International, as at 31 March 2024. Excludes China AMC resources.

External

Fidelity is a signatory to many industry initiatives such as the Principles for Responsible Investing (PRI), UK Stewardship Code and the Japanese Stewardship Code. We are also active members of the Asian Corporate Governance Association, Assogestioni, the UK Sustainable Investment and Finance Association, the UK Investor Forum and many other trade and industry bodies around the world.

Fidelity uses a number of external research sources globally that provide ESG-themed reports, research, ratings and data on themes such as corporate involvement in verified or alleged failures to respect international norms, for example the Ten Principles of the United Nations Global Compact (UNGC) as well as on carbon emission, fossil fuel and power generation. The coverage of companies varies by provider and the providers currently cover more than 10,000 companies globally.

We also subscribe to a number of corporate governance and voting advisory services, including products supported by Institutional Shareholder Services (ISS) and Glass Lewis, to MSCI for ESG data and to ISS for carbon footprint metrics.

We constantly explore new data sets and approaches that can provide enhanced insights into companies.

Sustainable Investing Team

Fidelity has a Sustainable Investing Team, which includes sustainability and stewardship professionals covering various subject matter areas and competencies. The Sustainable Investing Team is part of Fidelity’s Investment Team and it supports Fidelity’s investment analysts and portfolio managers to monitor, analyse, and engage with investee companies.

Fidelity’s Sustainable Investing Team has expanded to 38* members (2020: 13 members) to meet the growing demands for sustainable research, thought leadership and support for analysts and portfolio managers. The scope of the team’s work now covers a broad array of activities related to ESG integration, engagement, policy, product development and sales and marketing, as well as proxy voting.

Located in seven locations across Europe and the Asia Pacific region the Sustainable Investing Team covers a broad range of skills, including research, policy, climate science and governance. The team has a broad range of professional experience and diversity of tenure. Some specialists of the team have worked in similar roles throughout their career, while others have transitioned to sustainability over the course of their career development. The team is also diverse in terms of gender and national origin. When adding new members to the team, we have prioritised improving the team’s skillset to support our organisational stewardship objectives, as well as supporting the development of young talent in the firm, through our graduate intake.

The continued build out of our Sustainable Investing Team ensures that we remain able to meet the evolving needs of our clients and other stakeholders. New members have brought skills to complement and add to the existing capabilities of the team, including legal expertise, thematic expertise (for example, climate), client and distribution expertise and additional governance expertise.

The team will continue to evolve based on our sustainable investing strategy and aim to service all areas of the business. For example, we are planning to hire experienced asset class leads, growing the breadth and depth of our sustainable investing process and product offering. Fidelity’s investment analysts are responsible for researching companies under their coverage, leveraging the expertise of the Sustainable Investing Team as appropriate. Under this approach, ESG is fully integrated in the investment process. This collaboration has improved quality and outcomes of engagement across asset classes.

*Source: Fidelity International, as at 31 March 2024. Excludes China AMC resources.

Oversight of ESG at Fidelity

The following individuals and teams are responsible for maintaining and integrating Fidelity’s ESG policies:

• The board members of FIL Limited (the ultimate holding company of the group that trades as Fidelity International) have oversight and accountability for sustainable investing. The Sustainable Investing Team reports to the board on its activities at least once per year. The board approves any changes or amendments to our Sustainable Investing Principles, including our voting guidelines.
• A Sustainable Investing Operating Committee (SIOC) was formed in 2017. The purpose of the group is to ensure a comprehensive oversight of all ESG matters within the company across all jurisdictions and business areas. The group is comprised of members of our senior management team representing all asset classes. The SIOC meets monthly to review any ESG company policy changes, industry developments, client requirements, new product innovations and regulatory updates, and will ensure the alignment of all active ESG initiatives across the company. Ad-hoc meetings may be called to address pressing issues that may arise that need addressing in advance of the next scheduled meeting.
• Andrew McCaffery, our Global Co-Chief Investment Officer Fixed Income, Multi Asset and Private Assets (and a member of our Global Operating Committee (GOC)) also has oversight and accountability for our sustainable investing strategy and activities globally.
• Jenn-Hui Tan, our Chief Sustainability Officer, oversees Fidelity’s strategy and policies on engagement, voting and ESG integration across our active product range. He manages our dedicated Sustainable Investing Team that is comprised of 38* sustainable investing specialists, based in London, Singapore, Hong Kong, Shanghai, Melbourne, Sydney and Tokyo, who work closely with the investment management teams globally across all asset classes. They are responsible for consolidating our approach to ESG integration, engagement and voting.
• Our heads of research are also directly involved in the implementation of sustainable investing principles and procedures in the company. Specifically, our global head of research has final approval on which external ESG research vendors we engage.
• Fidelity’s research analysts have overall responsibility for analysing and rating the ESG performance of the companies and buildings in which we invest. Our portfolio managers are also active in analysing the potential effects of these factors when making investment decisions, ensuring that each stock in the final portfolio adheres to the strategy’s and clients’ ESG requirements.
• The Compliance Monitoring Team monitors the portfolios with screening criteria systematically through hard-coded restrictions in the investment guidelines.

*Source: Fidelity International, as at 31 March 2024. Excludes China AMC resources.

Industry collaboration

Fidelity recognises the importance of networks and information platforms to share tools, pool resources, and make use of investor reporting as a source of learning. Fidelity is a member or signatory to the following:

• #10000 Black Interns
• 30% Club Australia
• 30% Club Hong Kong
• 30% Club Investors Group
• 30% Club Japan
• 40:40 Vision
• Asia Investor Group on Climate Change (AIGCC)
• Asia Securities Industry and Financial Markets Association (ASIFMA)
• Asia Research & Engagement (ARE)
• Asian Corporate Governance Association (ACGA)
• Assogestioni
• BBBA Talent Accelerator
• Black North Initiative
• Black Young Professionals
• Bright Network Women in Leadership
• Catalyst After School Programme (CASP)
• CDP (formerly Carbon Disclosure Project)
• Climate Bonds Initiative (CBI)
• Climate Investment Summit (CIS)
• Coalition for Climate Resilient Investment (CCRI)
• Corporate Governance Forum (CGF)
• Council for Sustainable Business (CSB)
• Disability:IN
• Diversity Project
• Edinburgh Airport Sustainability Pledge
• Environment management system standard ISO 14001
• European Public Real Estate Association (EPRA)
• European Sustainable Investment Forum (EUROSIF)
• Farm Animal Investment Risk and Return (FAIRR)
• Finance for Biodiversity
• Finance for Biodiversity Pledge
• Glasgow Financial Alliance for Net Zero (GFANZ)
• Global Standard on Responsible Corporate Climate Lobbying
• Green Finance Industry Taskforce Singapore
• Green Praxis biodiversity
• Hong Kong Green Finance Association (HKGFA)
• Hong Kong Principles of Responsible Ownership (Stewardship code)
• Inspiring More Sustainability (IMS)
• Institutional Investors Group on Climate Change (IIGCC)
• International Corporate Governance Network (ICGN)
• International Regulatory Strategy Group (IRSG)
• Investment Association (IA)
• Investor Agenda
• Investor Forum (in the UK)
• Investor Group on Climate Change (IGCC)
• Investors Against Slavery and Trafficking Asia-Pacific (IAST Asia Pacific)
• Japanese Stewardship Code
• LGBT Great
• Lord Mayor's Appeal
• Lord Mayor's Appeal - We Can Be (Previously 'She Can Be')
• Maastricht University & (GRESB)
• Mental Health First Aid Training (MHFA)
• MSDUK
• (Minority Supplier Development UK)
• Natural Capital Investment Alliance (NCIA - part of Sustainable Markets Initiative)
• Net Zero Asset Managers Initiative (NZAMI) (led by IIGCC)
• One Planet Asset Manager initiative (OPAM) [One Planet Sovereign Wealth Fund (OPSWF)]
• OutBritain
• Partnership for Carbon Accounting Financials (PCAF)
• Point Zero Carbon Programme
• Powering Past Coal Alliance (PPCA)
• President’s Challenge Enabling Employment Pledge and Enabling Mark
• Principles for Responsible Investing (PRI)
• Purposeful Company
• Race at Work Charter
• Responsible Investment Association Australasia (RIAA)
• Social Enterprise UK (SEUK)
• Social Mobility Foundation (SMF)
• Stonewall
• Sustainable Trading
• Taiwan Stock Exchange’s Stewardship Principles for Institutional Investors
• Taskforce on Nature-related Financial Disclosures (TNFD) Forum
• Trans in the City - Campaign Trans Rights are Human Rights
• Transition Pathway Initiative (TPI)
• World Benchmarking Alliance (WBA)
• UK Stewardship Code
• (Financial Reporting Council (FRC))
• UK Sustainable Investment and Finance Association (UKSIF)
• European Sustainable Investment Forum (EUROSIF)
• UN Climate Change Conference (COP26)
• UNFCCC - Signatory to COP26 Financial Sector Commitment on Eliminating Agricultural Commodity-Driven Deforestation
• (Initiative re-named to Forest Sector Deforestation Action FSDA)
• Valuable 500
• Veteran Owned UK
• WeConnect International (Social Enterprise UK)
• WEF Stakeholder Capitalism Metrics
• Women in Finance Charter
• Women on Boards
• WorkWell Leaders

Dialshifter

Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by…

We take a pro-active approach to minimising our own environmental footprint. We are committed to achieving net zero emissions by 2030 for Fidelity International’s operational emissions (including all Scope 1, 2 and 3 emissions we have direct control over). Our focus will be on the reduction of emissions through operational changes and investment in operational efficiencies, on-site renewals and purchasing of renewable energy whilst offsetting those we are unable to eradicate.

The goal at Fidelity is to conduct current and future business operations in a sustainable manner which helps create a better future for the environment. Fidelity ensures Environmental Sustainability is managed as any other critical business activity in an integrated, systematic way. The framework is designed to ensure Pollution Prevention, Carbon Reduction, Waste minimisation, responsible use of resources and compliance with legislation through good practice and continuous improvement.

Fidelity’s Commitment: 

• Manage Environmental Sustainability requirements in a systematic way aligned to the environmental management system standard ISO 14001;
• Develop carbon, Natural Resources and Waste data systems to effectively monitor and analyse performance; 
• Continuous improvement through setting realistic objectives to ensure sustainability management is improved in line with resources;
• Complying with legal and other mandatory requirements in relation to sustainability issues;
• Providing adequate control of environmental risks arising from our work activities and operations, including Pollution Prevention;
• Develop an environmentally sustainable culture where every employee can contribute towards Fidelity International goal to create a better future for the environment;
• Ensure effective communication and consultation on Environmental Sustainability with employees keeping them informed, motivated, and suitably trained;
• Ensure that business strategies, via the Environmental Sustainability Group, integrate Environmental Sustainability requirements;
• Reduce our consumption of resources (energy, water, materials, packaging), where feasible;
• Minimise Waste through a commitment to the Waste hierarchy to reduce, re-use, recover or recycle Waste, where feasible;
• To pursue Energy Efficiency in the design, maintenance, management and operation of our owned/operated buildings;
• Seek to use products that have the least possible environmental impact; and
• Reviewing and revising this policy, as necessary, at regular intervals.

Reports on environmental performance are produced covering a range of areas including energy management, carbon footprint, waste reduction, water usage and recycling. This data is collated on a monthly basis and communicated to Senior Management on a regular basis.

Our environmental management policy is based around our ability to obtain regular, accurate information on our environmental performance, not only in energy use and waste management, but also areas such as monitoring our carbon emissions in (for instance) air travel.

We receive regular reports from our incumbent service providers, and collate these for review. We then hold regular meetings with them to investigate areas for improvement. Where the meetings produce ideas which may help reduce the environmental impact of our operations, they are implemented and monitored. Where successful, they are incorporated into our procedures.

Fidelity’s corporate sustainability team have initiated carbon footprinting for a number of offices in recent years and are consolidating that in 2020 to produce global carbon emissions for Fidelity’s activities.

SDR Labelling: Not eligible to use label