Sustainable Investing

At Fidelity, our purpose is to build better financial futures for our clients. We integrate environmental, social and governance (ESG) factors across FutureWise as we believe these risks will be financially material over the long term.

Setting clear and ambitious sustainability objectives is both a responsible and economically sound way to invest members’ savings. These considerations enhance capital allocation, strengthen risk management and support more resilient portfolio construction.

FutureWise applies this approach on a sector-neutral basis. This means that, rather than tilting towards or away from sectors based on how ‘green’ they appear, we focus on identifying sustainability-driven companies within each sector. This helps maintain diversification while capturing long-term structural opportunities.

Private markets are a tangible opportunity to positively impact our environment and communities, but have historically been an area of the market with less stringent regulatory reporting requirements. As a result, within the Fidelity Diversified Private Assets LTAF we seek to select private asset managers that deeply embed ESG risks within their investment strategy, rather than require certain ESG reporting standards that we are used to in public markets, which could inadvertently limit the private opportunities we are able to consider.

A proprietary ESG framework forms part of due diligence and ongoing monitoring, enabling structured assessment of sustainability factors and associated risks for each investment. Fidelity also engages actively with our private asset partners to encourage enhanced transparency and the continued development of ESG practices across the portfolio.