We believe that by investing in companies which operate with high standards of corporate responsibility we can protect and enhance investment returns for our clients.

Through our rigorous bottom-up research process we gain an in-depth understanding of ESG issues at a company level before they escalate and potentially threaten the value of our clients’ investments.

We have been a signatory to the UN Principles for Responsible Investment (UNPRI) since 2012.

We are proud of our ratings - in 2017 we scored A+ in Strategy & Governance and for our fixed income strategies and maintained our A rating for both equity strategies.

Source: UN Principles for Responsible Investment - ‘Overall Strategy &Governance 2017’

 

Our ESG Scorecard (from A+ rating above)

Module2017 Fidelity Score2017 Median2016 Fidelity Score2016 Median

Strategy & Governance

A+

A

A

B

Listed Equity - Incorporation

A

A

A

A

Listed Equity - Active Ownership

A

B

A

B

Fixed Income - Corporate Non-Financial

A+

B

A+

C

Fixed Income - SSA

A+

B

A+

C

Fixed Income - Corporate Financial

A+

B

A+

C

Fixed Income - Securitised

A+

E

A+

E

Source: UNPRI

ESG is part of our investment process

There are four important inputs into how we analyse ESG for each company that we research - our analysts, our specialist ESG team, external research and our portfolio managers who actively consider ESG in their investment decisions.

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An evolution of ESG at Fidelity

We are continually striving for enhanced ESG integration into our investment process.

In 2016

 

We included controversy data such as environmental disasters, product safety recalls and bribery scandals in our ESG rating methodology.

 

Our analysts continued their extensive research on climate change and electric vehicles and their impact on industry and the environment.

 

We launched a new feature on our research management database to more systematically track ESG engagement and analysis.

 

We developed a diagnostic tool to identify the key drivers behind the MorningStar sustainability ratings and used this for portfolio analysis on ESG matters.

Contributing to global standards

We participate in the debate over the development of appropriate standards for responsible investment through our membership in these forums:

 International Corporate Governance Network
 Asian Corporate Governance Association
 Asia Securities Industry and Financial Markets
 Hong Kong Investment Funds Association
 The Association of British Insurers the Corporate Governance Forum, Investment Association and UK Sustainable
      Investment and Finance Association in the UK
 The Dutch Association of Investors for Sustainable Development

In addition, we are signatories to the UK Stewardship Code and the Japanese Stewardship Code.

Want to know more?

FAQs

  • What is responsible investing?

    The UNPRI defines responsible investment as an approach that aims to incorporate environmental, social and governance (ESG) factors into investment decisions, to better manage risk and generate sustainable, long-term returns. At Fidelity, responsible investment is an integral part of our investment process.

  • What does ESG stand for?

  • What were Fidelity’s main activities in ESG over 2016?

  • Who are the UNPRI?

  • What are the UNPRI’s six Principles?

  • What is active ownership?

  • What external governance-related bodies does Fidelity participate in?

  • How does Fidelity integrate ESG factors into their investment decision?

  • Does Fidelity have an Exclusion List and if so what does it cover?

  • How many companies are on the Exclusion List?

  • How often is the Exclusion List reviewed?

  • What is your policy on carbon emissions?

  • Does Fidelity offer funds specifically tailored for ESG? (for CE & UK only )

  • Can Fidelity offer an ESG solution to institutional clients?

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