Commitment to responsible investing

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 Environmental, Social and Governance (ESG) issues at a company level before they escalate and potentially threaten the value of our clients’ investments.

A+ rated by UNPRI
760+ companies actively engaged in 2017
Voted at 3,700+ shareholder meetings

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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Related insights

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ESG in real estate - how green is your castle?

Unlike investments in stocks and bonds, real estate represents a tangible, physical ownership of land or property and as such fund managers have more control over the ESG aspects of their investments.

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Pulling away: Inequality as an ESG risk

This essay examines the current state of wealth distribution, its causes and the emerging threats to the status quo, to show why inequality is turning into an important sustainability risk.

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Avoiding ‘cybergeddon’: ESG risk in an interconnected world

Cybersecurity and data protection are rapidly emerging as some of the biggest environmental, social and governance (ESG) risks for companies to manage.

An evolution of ESG at Fidelity

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

In 2017:
 

  • Further progress was made in promoting Fidelity’s long-term incentive plans share retention guidelines with most UK companies now having a minimum share retention period of 5 years for shares granted to top executives.
  • Our analysts continued their research on climate change and the impact of future increase in carbon price on certain industries.
  • Fidelity became a named supporter of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
  • Analysts are explicitly required to comment on ESG issues when a company has a poor ESG rating or when it has faced a severe controversy.

Contributing to global standards

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

  • Asian Corporate Governance Association (ACGA)
  • Corporate Governance Forum
  • Global Real Estate Sustainability Benchmark (GRESB)
  • International Corporate Governance Network (ICGN)
  • The Investor Forums (in both Japan and the UK)
  • UK Sustainable Investment and Finance Association (UKSIF)
  • Dutch Association of Investors for Sustainable Development (VBDO)

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

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FAQs

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The UK Stewardship Code

We are a signatory of the UK Stewardship Code and we have received an independent assurance opinion on our stewardship & voting processes.

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Our Voting record

We update our voting record on a quarterly basis setting out how we cast our vote at each company meeting.

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