Sustainable, Responsible &/or ESG Policy:

The fund's investment philosophy is anchored in the belief that markets are often inefficient in discounting future returns. The further we look into the future, the greater the potential inefficiency. This is because there is a cost to doing rigorous analysis and processing information, and such analysis is subject to behavioural bias. For this fund, the team focuses on areas where these inefficiencies are greatest, to find companies where the market is underestimating the longevity (duration) of company’s pricing power and where three-to five-year expectations are too low. The team also believes that consideration of ESG factors while analysing investment opportunities results in better financial and ESG outcomes, which aids the delivery of sustainable growth and high returns on capital over time.

At Fidelity, we use the term ‘sustainable investing’ to encompass ESG issues and related topics in this continually evolving area as we believe that Sustainable Investing better articulates what we aspire to as asset managers and stewards of our clients’ capital, which is to aim to enhance returns and promote responsible capital allocation.

Environmental: On the environmental side, this means the impact that companies have on their surroundings and anticipating how global themes such as climate change, water scarcity and the transition to a circular economy may impact their business models over the long-term. This is referred to as ‘dual materiality’ between the company and environment as they impact each other.

Social: Social issues are hugely important if companies are to ensure they are insulated against business risks. For example, companies must understand that their business relationships with suppliers and employees carry reputational and regulatory consequences. It is important that they comprehend the importance of having full oversight of their supply chain.

Governance: While governance issues have long been a focus of investors, today’s clients expect investment managers to play a key role in ensuring that investee companies operate to the highest standards. This is achieved by educating organisations on the benefits of strict and transparent accounting practices, diverse and inclusive leadership teams, and remuneration and incentive plans that align the goals of the company with those of the board.

The fund is subject to a firm-wide exclusion list, which includes, but is not limited to, companies involved in the production and/or distribution of cluster munitions and anti-personnel landmines. Besides our firm-wide Exclusion Policy, norms-based screening is performed and includes issuers which the Portfolio Managers consider have failed to conduct their business in accordance with accepted international norms, including as set out in the United Nations Global Compact. The fund also excludes civilian firearms, adult entertainment and gamily of issuers that derive more than 5% of their revenue threshold from those businesses.

Process:

The investment process of the fund can be broken down into following six different stages:

• Exclusions and screens
• Sustainable Investment (SI) assessment
• Idea generation
• Research and selection
• Portfolio construction and risk management
• Active ownership

Exclusions and screens

The starting investable universe of the fund consists of approximately 3,000 global companies in the fund’s index. For the fund, we aim to exclude companies whose activities or failures cause environmental or social harm. 

The exclusions which are applied to the strategy include:

Firm wide exclusions: The firm wide exclusion framework screens for issuers with involvement in the various categories of controversial weapons, the use of which is prohibited by international treaties or conventions. These include cluster munitions, landmines, biological weapons, chemical weapons, blinding laser weapons, incendiary weapons, non-detectable fragments. We also screen for nuclear weapons for non-signatories of the Treaty on the Non-Proliferation of Nuclear-Weapons, specifically manufacturers of nuclear weapons, warheads, whole nuclear missiles, and/or nuclear fissile materials; manufacturers of components and delivery platforms developed and/or significantly modified for exclusive use in nuclear weapons; and issuers that provide support services related to nuclear weapons.

Fund exclusions: These apply to issuers who fail the Ten Principles of the United Nations Global Compact (UNGC), the Organisation for Economic Co-operation and Development (OECD) Guidelines for Multinational Enterprises, the United Nations Guiding Principles for Business and Human Rights, Responsible Business Conduct and the International Labour Organization (ILO) Conventions as identified by ISS-Ethix and MSCI and reviewed by Fidelity. This research is complemented by Fidelity’s forward-looking assessment of a company and any changes to its practices.

The above DNSH activities are excluded in the Sustainable Global Equity Fund at the indicated revenue threshold, along with the controversies and principal adverse impacts: For more details on Fidelity’s Sustainable Investing Framework please see: https://fidelityinternational.com/sustainable-investing-framework/ . *Qualifying criteria apply.

Companies that meet these criteria are then eligible for further consideration and sustainable investment assessment. 

SI assessment

The investible universe is defined using our SI assessment based on below criteria:

• Enabling environmental or social objectives. There are three possible routes to achieve this. The first is to have over 50% of revenues aligned to the EU Taxonomy. The second is to have over 50% of revenues aligned to UN Sustainable Development Goals, as determined by Fidelity’s SDG tool. The third is to have a validated Science Based Target Initiative (SBTi) target consistent with a 1.5 degree or lower scenario.
• Do No Significant Harm. We have a set of screens that identify issuers assessed to be causing harm. These are based on revenues from certain activities, controversies, and the worst performers on sustainability screens. (See exclusions section above).
• Minimum safeguards and good governance. This is covered by setting a minimum ESG rating threshold, fundamental analysis as well as the measures above.

Our Sustainability Team has built a proprietary SDG tool that is used to measure a company's Sustainable Development Goal (SDG) alignment.  It works by taking FactSet’s Revere Business Industry Classification System (RBICS) dataset, which breaks down an issuer's revenues across approximately 1,800 different categories, and then maps these different revenue streams to SDGs, looking at the underlying targets and indicators to determine whether or not a specific business activity is making a contribution to any of the SDGs.

Idea generation

The Portfolio Managers have a pluralistic approach to idea generation, relying on a combination of our research inputs from 118* analysts across the globe including approximately 38* dedicated ESG specialists), our proprietary SDG tool (to identify companies making a meaningful impact to United Nations Sustainable Development Goals), company meetings and conferences and third-party research (sector and thematic research, consultants/industry experts meetings), and quantitative screens to help narrow the universe. 

Only stocks which meet the required sustainability criteria and are consistent with the investment philosophy are considered for further analysis. 

In practical terms, the Portfolio Managers reference the investment recommendations of the Sustainability Team as well as other global diversified and global sector portfolio managers which provides them with an overall perspective and highlights the most promising investment themes and their best stock ideas. 

*Source: Fidelity International, as at 31 March 2024.

Research and selection 

The research and selection process consists of three stages: (1) Sustainability – finding companies that enable a more sustainable economy, (2) Fundamentals – rigorous bottom-up financial analysis and (3) Valuation – selecting underappreciated stocks with attractive risk-rewards. 

Stage 1 – Sustainability. The Portfolio Management Team works in collaboration with our fundamental and ESG analysts to understand and analyse a company’s ESG profile and SDG alignment. This involves a thorough assessment of ESG risks and opportunities at the stock (ESG factors) and sector levels to select companies having best practices, sustainable development, high ESG scores and low controversy risks. At a stock level, the focus is on identifying the companies best positioned to drive positive change and also those that are poised to benefit from multi decade megatrends. This is informed by an in-depth assessment of the company’s products and services to assess contribution to the United Nations SDGs. We also believe investing in businesses contributing to the SDGs is a way of accessing several powerful economic themes such as decarbonisation, financial inclusion, and health and wellbeing. These themes (among others) are aligned to sustainable development and provide a rich source of investment opportunity. 

This is an iterative process conducted alongside fundamental/financial analysis, with the two aspects informing one another. This approach also serves as a tool to highlight areas for further engagement with companies.

Stage 2 – Fundamentals. Detailed financial model and industry analysis is carried out in conjunction with the relevant Fidelity analyst to build a deep understanding of industry structure and how this may evolve in the future. This includes analysis of the company’s financial model, industry structure, capital allocation and risk profile. 

Throughout the research process, the Portfolio Managers use company meetings not only to build conviction in ideas, but also to draw broader conclusions and identify implications for other industries and businesses within that specific industry value chain. 

The Portfolio Managers are looking for companies which fit the following profiles:

Duration – companies with the durable competitive advantages or underappreciated growth tailwinds, where the market overlooks the compounding potential of these businesses. 

Change

• Structural change – Companies which are changing for the better, and the market has failed to recognise this.
• Transitory change – Companies where a short-term event is weighing on the perception and valuation, and masking a higher quality business.

Stage 3 – Valuation. For selecting underappreciated stocks with attractive risk-rewards, the Portfolio Managers use a combination of absolute and relative valuation metrics for both existing holdings and new potential candidates.

They derive an intrinsic value range using a range of valuation tools; returns based multiples 3+ years out, multiples versus history, versus peers and long-term Discounted Cash Flows (DCF) to build an expectation of Total Shareholder Return (TSR), to be used as a guide not a rule. ESG considerations and SDG profile are integrated through the Portfolio Managers' views on future growth, returns on capital, and warranted multiple of the company.

Portfolio construction and risk management 

The portfolio typically consists of 40–60 stocks. Position sizes typically range between 1.0%-5.0% of the portfolio. Position sizes are a function of the Portfolio Managers’ perceived assessment of the range of outcomes, valuation versus intrinsic value range and versus other positions within the portfolio, stock characteristics (for example, volatility) and portfolio fit (for example, contribution to common factor tracking error). The Portfolio Managers have developed a tool in conjunction with the Risk function building on these inputs; they will use this tool to support the management of existing position sizes (providing nudges as a position evolves from its appropriate position size) and to help size new positions appropriately in the context of the broader portfolio.

The holding period of any stock is impacted by the speed at which market consensus adjusts and the longevity of market cycles. Stocks are exited when the investment thesis breaks or is altered materially, or has played out and the company’s value consistently exceeds our intrinsic value range or in favour of better opportunities elsewhere and for portfolio risk management purposes. Also, the holding is revaluated when the company no longer qualifies as sustainable investment under our framework, a change in business mix undermines sustainability / SDG thesis, there’s an adverse change in ESG characteristics / controversy without adequate remediation, or if the company fails to address ESG issues following engagement on material issues. 

In a stable market environment, the expected turnover of the portfolio will be approximately 30 - 40%. An average holding period of around three years allows for deep and constructive engagement with companies held in the portfolio, driving better sustainability outcomes. 

Risk management: At the stock level, the Portfolio Managers undertake a thorough analysis of the fundamental and ESG risk profile of the company and the investment thesis. They also monitor all ongoing developments with the help of our analysts. 

At the total portfolio level, the Portfolio Managers assess intra-stock correlations and focus on calibrating position sizes in order to avoid unintended factor exposures or concentration risks. They also manage the portfolio’s style exposure with a view to delivering strong relative returns across a range of market environments. 

The Portfolio Managers participate in a Quarterly Fund Review (QFR) chaired by the relevant Head of Equities, which is also attended by a member of the Portfolio Construction and Risk Team. This review covers portfolio construction, liquidity, positions, trading activity, characteristics, style and risk in considerable detail.

Our risk oversight process also includes a Quarterly Sustainability Review (QSR) for sustainable funds. This review is supported an approximately 20-page data pack covering a range of ESG datapoints, including rating profiles and disparities (Fidelity and MSCI), engagement, voting, exclusions, carbon and climate data and Principle Adverse Impacts (PAIs). The QSR discussion is currently led by the Sustainability Team, in active dialogue with the Portfolio Managers, our Chief Investment Officer, the Investment Director, and data analysts. 

The QSR is designed to further strengthen the authentic integration of sustainability throughout our range of strategies, by providing a regular and structured forum for each fund to thoughtfully discuss and debate key sustainability aspects of the portfolio and its holdings, including whether the fund is meeting its sustainability objectives and how the strategy may seek to improve and monitor its outcomes. 

Although not the primary point of compliance or regulatory monitoring, the QSR provides an avenue for additional checks on and discussion of these issues. The QSR works as part of our established QFR process. 

The risk management processes described above are further bolstered by independent risk oversight checks and controls. These include daily monitoring of portfolio guidelines and constraints (considering regulatory requirements) by the Compliance function, and monthly Investment Risk Committees’ (IRCs’) evaluations of portfolio risk exposures and their alignment with expectations. 

Active ownership

The Portfolio Managers aim for sustainability focused meetings with all companies held within the fund at least once annually, to deliver improved ‘real world’ sustainability outcomes as well as improved long-term outcomes for shareholders. The Portfolio Managers along with the analyst and sustainable investing analyst will engage with the companies where needed to monitor and encourage improvement in a company’s ESG performance (including any shortcomings identified during the research process). These interactions also help us identify best practices that can inform other engagements and our investment process. As part of our active ownership, we communicate our voting practices and discuss areas of divergence with our holding companies. Failed engagements on material issues will also result in divestment. 

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 Environmental, Social and Governance (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.

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 influence 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:

Sustainable Investing Principles (Published 2013, Updated 12/2022)

Our Sustainable Investing Principles sets out the guiding principles and minimum requirements for Fidelity’s sustainable investing activities across all asset classes and geographies.

Engagement Policy (Published 02/2021)

Our Engagement Policy sets out how we undertake stewardship and shareholder engagement across our listed equity and fixed income holdings.

Exclusion Framework (Published 12/2021)

Our Exclusion Framework forms part of our Sustainable Investment Policy and defines the main requirements for an effective exclusion framework applicable throughout the organisation.

Voting Principles and Guidelines (Published 07/2021, updated 03/2023)

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

Climate Investing Policy (Published 10/2021)

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.

Nature Roadmap  (Published 11/2023)

Our Nature Roadmap details how we are enhancing the integration of nature into our investment platform to help create a world where both people and the planet can thrive.

Deforestation Framework (Published 12/2022)

Our Deforestation Framework outlines how we engage with stakeholders to address agricultural commodity-driven deforestation risks across our investment strategies, aligned to our active, bottom-up investment approach.

All our sustainable investing related policies and reports are available on our website:

https://professionals.fidelity.co.uk/sustainable-investing/our-policies-and-reports

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 aim to integrate ESG and other factors into a comprehensive perspective. They are supported by our team of 34* sustainable investing specialists who engage with companies on various issues including:

• Corporate governance (for example, board structure, executive remuneration);
• Shareholder rights (for example, election of directors, capital amendments);
• Changes to regulation (for example, greenhouse gas emissions restrictions, governance codes); and 
• Physical threats (for example, extreme weather, climate change, water shortages).

Our sustainable investing specialists engage with senior management of investee companies as well as their Socially Responsible Investment/ESG professionals. 

Proprietary ratings and tools sit at the heart of Fidelity’s sustainable investing approach, facilitating the integration of sustainability in our fundamental research and ensuring a consistent approach. Our suite of proprietary tools include:

• ESG ratings: An assessment 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).
• Climate ratings: An assessment that 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.
• SDG tool: An assessment which provides the percentage of an entities 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.

External

Fidelity is a signatory to many industry initiatives such as the Principles for Responsible Investing, 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 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 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), Glass Lewis and ZD Proxy Shareholder Services. In addition to these, we leverage information from these providers:

• MSCI: ESG data and indicators, exclusions, non-carbon PAIs, ratings, controversies.
• FactSet: RBICS/GeoRev in portfolio analysis.
• Moody's: EU Taxonomy Data.
• ICE Data Services: avoided emissions.

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

*Source: Fidelity International, as at 30 September 2024. Excludes China AMC resources. 

Sustainability Team

Fidelity's Sustainability Team, part of Fidelity’s broader investment team, comprises sustainability and stewardship professionals with expertise in various subject areas. Consisting of 34* professionals, based in locations across Europe and the Asia Pacific region, the team’s scope now encompasses a wide range of activities related to ESG integration, engagement, policy, product development, sales and marketing, proxy voting as well as corporate sustainability.

The Sustainability Team functions across Fidelity in several ways:

• Collaborates closely with the broader investment team, supporting analysts in producing ESG research and conducting company-specific engagements, driving thematic engagement outcomes with sector analysts' input, and assisting portfolio managers in integrating ESG into their investment processes through proprietary tools, training, and frameworks.
• Works in tandem with the product team to develop sustainable investing frameworks and strategies in compliance with ESG regulations and tailored to diverse investor needs.
• Assists client-facing teams and clients with sustainable investing requirements and needs, including client communications, questionnaires, reporting, and training.

*Source: Fidelity International, as at 30 September 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 known as Fidelity International) are responsible for overseeing and being accountable for sustainable investing. The Sustainability Team provides regular reports to the board on its activities, at least once a year. Any changes or amendments to our Sustainable Investing Principles, including our voting guidelines, are approved by the board.
• In 2017, the company established a Sustainable Investing Operating Committee (SIOC) with the aim of providing thorough oversight of all ESG matters across the company's various jurisdictions and business areas. The committee consists of senior management team members representing all asset classes and convenes monthly to review ESG company policy changes, industry developments, client requirements, new product innovations, and regulatory updates. It also ensures the alignment of all active ESG initiatives across the company. Additionally, ad-hoc meetings may be called to address urgent issues that arise before the next scheduled meeting.
• Andrew Wells - Interim Co-Chief Investment Officer, Fixed Income, Multi Asset and Private Assets and Head of Canada and Niamh Brodie-Machura - Co-Chief Investment Officer, Equities (both members of our Global Operating Committee) have 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 Sustainability Team that is comprised of 34* 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 directors of research are directly involved in the implementation of sustainable investing principles and procedures in the company. 
• 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 30 September 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:

Gender Diversity:

• 30% Club Australia (2021)
• 30% Club Hong Kong (2022)
• 30% Club Japan (2019)
• 30% Club Investors Group (2019)
• 40:40 Vision (2020)
• Bright Network Women in Leadership
• Lord Mayor's Appeal - We Can Be
• Women in Finance Charter (2017)
• Women on Boards (2018)

Social Inclusion and Diversity:

• #10000 Black Interns (2020)
• BBBA Talent Accelerator (2020)
• Black North Initiative
• Black Young Professionals
• Catalyst After School Programme
• Disability:IN (2022)
• Diversity Project
• LGBT Great (2019)
• Lord Mayor's Appeal (2019)
• Minority Supplier Development UK (2020)
• OutBritain (2022)
• President’s Challenge Enabling Employment Pledge and Enabling Mark (2023)
• Race at Work Charter
• Social Enterprise UK (2021)
• Social Mobility Foundation (2021)
• Stonewall (2016)
• Trans in the City (2021)
• Valuable 500 (2019)
• Veteran Owned UK (2021)
• WeConnect International (2021)

Climate Change:

• Asia Investor Group on Climate Change (2020)
• CDP - formerly Carbon Disclosure Project (2019)
• Climate Bonds Initiative (2019)
• Climate Investment Summit (2022)
• Coalition for Climate Resilient Investment
• Global Standard on Responsible Corporate Climate Lobbying (2022)
• Green Finance Industry Taskforce Singapore (2020)
• Glasgow Financial Alliance for Net Zero (2021)
• Institutional Investors Group on Climate Change (2020)
• Investor Agenda (2021)
• Investor Group on Climate Change (2021)
• Net Zero Asset Managers Initiative (2020)
• One Planet Asset Manager Initiative (2021)
• Partnership for Carbon Accounting Financials (2022)
• Point Zero Carbon Programme (2022)
• Powering Past Coal Alliance (2021)
• Transition Pathway Initiative (2021)
• UN Climate Change Conference (2021)

Responsible Investment and Finance:

• Asia Securities Industry and Financial Markets Association (2015)
• Asia Research & Engagement (2023)
• European Sustainable Investment Forum (2017)
• European Public Real Estate Association (2023)
• Hong Kong Green Finance Association (2020)
• International Regulatory Strategy Group
• Investment Association (2010)
• Investor Forum - UK (2014)
• Principles for Responsible Investing (2012)
• The Purposeful Company Task Force
• Responsible Investment Association Australasia (2020)
• Sustainable Trading (2005)
• UK Sustainable Investment and Finance Association (2010)
• World Benchmarking Alliance (2020)

Governance and Corporate Accountability:

• Asian Corporate Governance Association (2004)
• Assogestioni (2007)
• Corporate Governance Forum (2009)
• Hong Kong Principles of Responsible Ownership (2017)
• International Corporate Governance Network (2005)
• Japanese Stewardship Code (2014)
• Taiwan Stock Exchange’s Stewardship Principles for Institutional Investors (2016)
• UK Stewardship Code (2010)

Biodiversity:

• Finance for Biodiversity (2021)
• Finance for Biodiversity Pledge (2021)
• Green Praxis Biodiversity (2022)
• Natural Capital Investment Alliance (2021)
• Taskforce on Nature-related Financial Disclosures Forum (2021)
• The Finance Sector Deforestation Action Initiative (2023)

Other Initiatives and Collaborations:

• Council for Sustainable Business
• Edinburgh Airport Sustainability Pledge
• Environment management system standard ISO 14001 (2023)
• Farm Animal Investment Risk and Return (2020)
• Inspiring More Sustainability (2019)
• Investors Against Slavery and Trafficking Asia-Pacific (2020)
• Maastricht University & GRESB (2021)
• Mental Health First Aid Training (2017)
• WEF Stakeholder Capitalism Metrics (2019)
• WorkWell Leaders (2023)

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:

Sustainability Focus label

SDR Literature:

• Consumer Facing Disclosure