Every investment decision has potential long-term financial and societal consequences. At Fidelity we are committed to using our position to steer companies towards the right business decisions on both matters.
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. Fidelity believes that high standards of corporate responsibility will generally make good business sense and have the potential to protect and enhance investment returns.
ESG stands for Environmental, Social and Governance. Analysing these factors can be a key way to assess the sustainability and social impact of an investment in a company or a business.
Companies need to manage the impact that they have on their surroundings and anticipate how global themes such as climate change and nature-loss may impact their businesses over the long term.
Companies need to ensure good oversight of their supply chains and manage their relationship with employees to insulate against operational, legal and regulatory business risks.
Good governance ensures that companies operate to the highest standards, for example through transparent accounting practices, diverse and inclusive leadership teams and well-designed incentive plans.
At Fidelity, our purpose is to work together to build better financial futures for our clients. Considering and integrating sustainability risks and opportunities is of increasing importance to achieving these goals.
Our sustainable investing approach is built on three components, integration, stewardship and solutions, and aims to meet our clients’ financial and non-financial objectives, as well as an evolving regulatory environment across global markets.
Find out more about our approach and access to policies and reports here.
Our default investment strategy for workplace investing pension schemes, FutureWise, has sustainability built in. The funds it invests in are currently managed by Fidelity and BlackRock.
We carefully monitor the funds we offer your employees through our Workplace pensions, and we expect all the fund managers we work with to outline how they engage with companies on ESG issues. As well as this, we ask them to measure the effectiveness of their strategy for engaging with companies in terms of how it benefits members of pension schemes and other investors. We also encourage fund management companies to become signatories of the Principles for Responsible Investing (PRI) and the UK Stewardship Code.
We apply the same lens used to evaluate investee companies to our own operations, with sustainability fully incorporated into our business. We are committed to reducing our environmental footprint, adhering to the highest standards of governance, encouraging a positive workplace culture and embracing diversity and inclusion at all levels.
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