Sustainable, Responsible &/or ESG Policy:

The fund is part of the Fidelity Sustainable Family of Funds and adheres to the Fidelity Sustainable Family Framework under which at least 70% of the fund’s net assets will be invested in issuers deemed to maintain sustainable characteristics. The fund will also adhere to the Fidelity Sustainable Family Exclusion Policy. Investments with sustainable characteristics are those which the Portfolio Managers believe to have effective governance and management of environmental and social issues and deliver long term sustainable outcomes through positive societal impact. Such investments are identified through Fidelity’s Sustainable Investing process, which is built on three related elements: integrated Environmental, Social and Governance (ESG) analysis, engagement, and collaboration.

Sustainable characteristics based on ESG considerations are analysed by Fidelity and principally assessed based on various criteria such as, climate change mitigation and adaptation, water and waste management and biodiversity, product safety, supply chain, health and safety and human rights.

Process:

Fidelity utilises a three-step process:

• Idea generation
• Portfolio construction
• Risk management

Idea generation

Our investment process is built on the strength of our research platform. We blend fundamental credit and Environmental, Social and Governance (ESG), quantitative and trading inputs to build a holistic view of any prospective holding. We have a collaborative team environment in which everyone is encouraged to express views and challenge ideas.

The inputs into our idea generation process combine to give ideas a Relative Value (RV) which then feeds into the portfolio construction process.

• i) Credit and ESG research

Fundamental credit research forms the basis of the strategy’s investment process. The Credit Research Team consists of 42* individuals, based in London, Hong Kong, China and Toronto. Fidelity operates a career analyst model with the Credit Team consisting of a blend of home-grown talent (primarily through the graduate program) and experienced hires.

*Source: Fidelity International, as at 31 March 2023. Excludes investment graduates and includes Toronto-based analysts, who are part of Fidelity Canada Investment Management (FCIM). FCIM is an affiliated entity of FIL Limited.

Each analyst screens their universe to determine which companies receive which level of coverage (alpha, beta, or credit bench).

The credits are analysed and compared across sectors and are each awarded a Fundamental Rating (an independent view of credit fundamentals), a Fundamental Outlook (a forward-looking assessment of credit fundamentals), an RV score (1 Strong Buy - 5 Strong Sell) and an ESG Rating (both stand-alone and forward-looking) along with a sub-ESG score (on ‘Environmental’, ‘Social’ and ‘Governance’ from 0 to 3), which is jointly determined by the credit and equity research analysts. 

• ii) Macro Research

The Portfolio Managers draw on inputs from multiple expert teams to help inform duration views. The output of which tends to be no more than plus or minus 1 years around the index.

• Our Macro Research Team is a group of macro and market experts working on a cross-asset basis, and supporting fixed income, equities, solutions and multi asset, and real estate. They research and maintain macroeconomic models, generate inflation projections and opine on likely central bank outlook.
• Our Quantitative Research Team has developed and maintains a suite of quantitative models which allow portfolio managers to spot opportunities in the sovereign and credit space, including cross-country sovereign relative value opportunities and curve dislocations, directional and cross-market models based upon underlying macro and micro signals. The quant model recommendations are incorporated into Fidelity’s Tactical Rates Team view on duration across the three main markets (US Dollar, Euro and UK Sterling), and inform Portfolio Managers' views on credit beta.
• Our sovereign and credit traders engage with all Fixed Income Team members by providing market colour around positioning, consensus and technical conditions. They generate relative value and directional trade ideas that are incorporated into our portfolios at the discretion of the portfolio managers.
• Specialist Portfolio Managers on government bond and IG regional markets (US Dollar, Euro and UK Sterling) are focused on managing duration against a particular government bond curve. Thanks to their expertise, they inform the sovereign and duration view for the broader Fixed Income Team, both informally through engaging with other portfolio managers, and more formally through their vote in the Tactical Rates Team.
• Credit and equity research analysts also provide a unique perspective on the state of the economy through a bottom-up lens. The several thousand meetings held with the senior representatives of the companies that we invest into, not only give us a view on each company's overall health and creditworthiness, but also are a key indicator of the underlying state of the economy. The aggregate regional and sector views, from our bottom-up analysis, are a unique and highly valuable input into our macro, credit and sovereign positioning.

• iii) Quantitative research

The Tactical Quantitative Research Team's approach to trade idea generation is to aim to create ideas, models, scorecards and overlays that are back tested, uncorrelated, timely, automated, and unbiased:

• Back-testing: By rigorously testing against historical data, the team aims to;
• Rapidly distinguish trading strategies with potential from those that don’t add value.
• Set position sizes based on historical data and worst-case drawdown scenarios.
• Identify strategies that continue working in diverse environments - both in Quantitative Easing (QE)-and non-QE environments or different parts of the macroeconomic cycle.

Diversification: Quants identify, recommend and monitor multiple signals across many different asset classes and from many different sources for a large number of instruments. Combining uncorrelated strategies from areas as different as momentum, mean-reversion, seasonality and yield curve slope reduces risk for a given alpha.

Data: Quants can take advantage of massive data sets. We take into account a wider range of data inputs on every bond in our universe and unearth less-obvious relationship than manual analysis can.

Automation: With increased automation of data processing and analyses, quants can update the analysis of every asset every day. Missed opportunities from delayed analysis as well as mistakes from human error can be reduced using quantitative strategies, and quantitative screens can funnel pre-screened high-potential opportunities to specialists in the Credit Analyst Team for deeper review.

Reduction of behavioural biases: Quantitative strategies can mitigate or eliminate the behavioural biases of manual investing by making the assumptions in our investment process more explicit and by imposing structure on the investment process – and they can help us exploit the biases of other market participants.

• iv) Specialised traders

A key distinction of our fixed income approach is that traders provide portfolio managers with market intelligence, flow information and trade recommendations. Traders are dedicated by asset class which is especially important for markets affected by seasonal liquidity and influenced by technical trends. Ideas generated by the team tend to be either short-term tactical trades, typically where the idea is flow-driven based on a pricing anomaly, or longer-term and strategic trades, gained through insight from meetings with official institutions such as central banks and issuing agencies. Ideas may also be based on shifting demand trends.

Traders are also integral to the new issue process, forming opinions on new issue demand, premium and success of a deal. In doing so, traders work in close collaboration with portfolio managers, credit and quantitative analysts to formulate an investment thesis.

Portfolio construction

There are three elements to portfolio construction:

• i) Position sizing

The highest conviction RV rated ideas are used to build portfolios. We size positions with reference to their credit rating band and their RV rating assigned by our credit analysts. Higher conviction credits from higher quality issues are held in larger size than those of lower quality credits where we have less conviction. We also take into account issuance size, maturity and currency. Positions in different bonds issued by the same entity are aggregated together, to give a genuine view of risk to one company.

RV ratings are constantly reviewed for example, an RV rating could move down as a result of a company’s credit profile deteriorating or if the bond performs well and therefore looks less attractive on a valuation basis. The downgrading of an RV rating below 3 is a clear signal to consider selling.

• ii) Execution

Transactions are directed by the Portfolio Managers through a global trading platform and implemented by a group of specialist traders in conjunction with the Portfolio Services Group (PSG). There is continuous dialogue between the Portfolio Managers, the traders and PSG as execution is often contingent on market levels. This structure has been established to enable traders to build strong external counterparty relationships, which is crucial for assessing market liquidity and ensuring best execution. PSG further supports the risk management and implementation process by actively monitoring fund investment guidelines and other requirements, such as pre-trade compliance reviews. In addition, the team has different reporting lines, which contributes to the reduction in the overall operational and execution risk by providing an additional and independent layer of control.

Overseeing every transaction is Compliance. The team is responsible for ensuring compliance rules are appropriately maintained and adhered to. They act as a second line of defence against portfolio breaches via rigorous end-of-day testing. Their expertise provides a framework within which the investment team can manage complex and bespoke portfolio requirements

Buy trades require a rating of RV1, 2 or 3 and bonds rated RV4 or 5 should be considered for sale as no longer hold value. There are two possible reasons why the rating could be downgraded and in turn sold:

• The credit has deteriorated, and the investment case changed.
• The bond has performed well, and is no longer attractive relative to the opportunity set, with better value found elsewhere.

• iii) Risk budgeting

Our Portfolio Construction and Risk (PCR) Team collaborated with portfolio managers to develop a suite of proprietary tests to ensure portfolios have appropriate levels of risk. Our starting point is the expected alpha the client wishes to achieve and the opportunity set within the guidelines. The model then generates an expected tracking error range by asset class, which is monitored over time. Continual monitoring and formal reviews at weekly franchise meetings ensure that sufficient (and efficiently diverse) levels of risk are taken to achieve the return target, and vice versa that risk levels have not exceeded the expected range on a persistent basis. Temporary breaches outside of either the top or bottom of the tracking error range are discussed and documented, but are not remedied unless they persist. This recognises that certain market environments encourage a “risk on” attitude to investing for periods of time, whilst on occasion when conviction is low, managers may dial down the risk they are running and we feel both are acceptable if transient.

Portfolio monitoring and oversight

Our risk processes follow three lines of defence model in adherence with a robust risk management framework.

First level

Investment team: Portfolio Managers use desktop risk management systems on a daily basis to analyse risk within portfolios. Reports typically include measures of tracking error, volatility, concentration, credit quality and other relevant measures.

Portfolio Managers are responsible for building portfolios that are consistent with the risk expectations and investment guidelines of our clients.

Portfolio Construction and Risk Team: This team helps Portfolio Managers understand and manage the risks associated with their portfolios through the provision of reporting and expertise.

Quarterly Fund Review (QFR): The Chief Investment Officer (CIO) / head of asset class meets with Portfolio Managers to discuss their respective portfolios in detail. During the meeting, factors such as the portfolio’s structure, turnover, trading activity, risk profile, performance, and level of active money are analysed.

Quarterly Sustainability Review (QSR): The QSR is designed to place additional scrutiny on the way that sustainability factors are being integrated and monitored at the fund level. A wider and deeper review of Environmental, Social and Governance (ESG) factors, as well as our stewardship activities (including engagement and voting) will thus be formally performed on a quarterly basis.

Second level

Investment Risk Team: This team ensures that material investment risks are adequately covered and understood by senior management and the board. The team provides risk metrics to support Compliance, senior management and other stakeholders.

Compliance: This function reviews all trades daily for asset eligibility and to ensure portfolios stay within their investment parameters. It also monitors trades to ensure best execution in the market, including appropriate pricing and timeliness.

Furthermore, Fidelity operates a network of shared first- and second-line Investment Risk Committees (IRCs) across the firm to support each asset class and specific investment management teams.

Fund Counterparty Risk Committee (FCRC): The FCRC is responsible for ensuring all risks associated with derivatives and counterparty exposures are continuously assessed and that an appropriate control environment is implemented by line management.

Fund Liquidity Risk Committee (FLRC): The FLRC is responsible for reviewing appropriateness of risk mitigations when Fidelity’s funds exceed agreed internal liquidity thresholds as well as reviewing and approving the Fund Liquidity Risk Framework.

Third level

The Internal Audit function provides an independent review of all risk functions as per regulatory requirements.

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 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. Please refer to our response to question B6 for detailed information on Fidelity’s proprietary ESG Rating and other proprietary tools that support our internal research process.

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 have an effect on 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, with all documents accessible via the following website: https://professionals.fidelity.co.uk/sustainable-investing/our-policies-and-reports:

Sustainable Investing Principles: The document sets out the guiding principles and minimum requirements for Fidelity’s sustainable investing activities across asset classes and geographies. The Sustainable Investing Principles build on our beliefs to set out our sustainable investing frameworks, our approach to sustainable client solutions, exclusions, investment stewardship and engagement, the integration of ESG risks and opportunities across our investment management process, and an overview of compliance with regional sustainability regulations.

Exclusion Framework: Our Exclusion Policy forms part of our sustainable investment policy and defines the main requirements for an effective exclusion framework applicable throughout the organisation.

Engagement Policy: Our Engagement Policy sets out how Fidelity undertakes stewardship and shareholder engagement across our listed equity and fixed income holdings.

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

Climate Investing Policy: 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.

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 look to incorporate ESG and other factors into a measured viewpoint. They are supported by our team of 38* sustainable investing specialists who engage with companies on issues like corporate governance (for example, board structure, executive remuneration), shareholder rights (for example, election of directors, capital amendments), changes to regulation (for example, green house gas emissions restrictions, governance codes), physical threats (for example, extreme weather, climate change, water shortages), and so on. Our sustainable investing specialists engage with senior management of investee companies as well as their Socially Responsible Investment (SRI) / ESG professionals. They access external ESG-themed research as well as the company ratings based on ESG factors that an external vendor produces.

Fidelity has developed a proprietary ESG Rating Framework, leveraging our internal research and interactions with issuers. The rating is 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). The ESG ratings and full company reports are accessible on our centralised research management system, Fidelity Insight, so that each analyst has a first-hand view of how each company under their coverage is rated according to ESG factors. In addition, ESG ratings are included on our analyst research notes. These notes are published internally on Fidelity Insight and form an important part of our investment decision.

Fidelity has also developed an SDG mapping tool, which provides the percentage of an entity’s 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.

Additionally, we have been developing our proprietary Climate Rating which 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.

Climate Ratings have been assigned to over 2,000 issuers so far, with the objective to further scale up this coverage over time. We will use various approaches, including the Climate Rating, to set individual fund decarbonisation targets appropriate to each fund’s investment strategy and universe. We will gradually increase targets to reach 100% alignment with the Paris Agreement in every fund by 2050.

Carbon emissions data is available via Insight and is accessible to all analysts and portfolio managers. This data includes (but is not limited to) portfolio carbon emissions and intensity, weighted average carbon intensity, top emitting holdings, emissions attribution analysis, scenario analysis, physical risk assessment, fossil fuel reserves and green/brown share of electricity generation (from held utilities).

*Source: Fidelity International, as at 31 March 2024. Excludes China AMC resources.

External

Fidelity is a signatory to many industry initiatives such as the Principles for Responsible Investing (PRI), 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 globally 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 (UNGC) 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) and Glass Lewis, to MSCI for ESG data and to ISS for carbon footprint metrics.

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

Sustainable Investing Team

Fidelity has a Sustainable Investing Team, which includes sustainability and stewardship professionals covering various subject matter areas and competencies. The Sustainable Investing Team is part of Fidelity’s Investment Team and it supports Fidelity’s investment analysts and portfolio managers to monitor, analyse, and engage with investee companies.

Fidelity’s Sustainable Investing Team has expanded to 38* members (2020: 13 members) to meet the growing demands for sustainable research, thought leadership and support for analysts and portfolio managers. The scope of the team’s work now covers a broad array of activities related to ESG integration, engagement, policy, product development and sales and marketing, as well as proxy voting.

Located in seven locations across Europe and the Asia Pacific region the Sustainable Investing Team covers a broad range of skills, including research, policy, climate science and governance. The team has a broad range of professional experience and diversity of tenure. Some specialists of the team have worked in similar roles throughout their career, while others have transitioned to sustainability over the course of their career development. The team is also diverse in terms of gender and national origin. When adding new members to the team, we have prioritised improving the team’s skillset to support our organisational stewardship objectives, as well as supporting the development of young talent in the firm, through our graduate intake.

The continued build out of our Sustainable Investing Team ensures that we remain able to meet the evolving needs of our clients and other stakeholders. New members have brought skills to complement and add to the existing capabilities of the team, including legal expertise, thematic expertise (for example, climate), client and distribution expertise and additional governance expertise.

The team will continue to evolve based on our sustainable investing strategy and aim to service all areas of the business. For example, we are planning to hire experienced asset class leads, growing the breadth and depth of our sustainable investing process and product offering. Fidelity’s investment analysts are responsible for researching companies under their coverage, leveraging the expertise of the Sustainable Investing Team as appropriate. Under this approach, ESG is fully integrated in the investment process. This collaboration has improved quality and outcomes of engagement across asset classes.

*Source: Fidelity International, as at 31 March 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 that trades as Fidelity International) have oversight and accountability for sustainable investing. The Sustainable Investing Team reports to the board on its activities at least once per year. The board approves any changes or amendments to our Sustainable Investing Principles, including our voting guidelines.
• A Sustainable Investing Operating Committee (SIOC) was formed in 2017. The purpose of the group is to ensure a comprehensive oversight of all ESG matters within the company across all jurisdictions and business areas. The group is comprised of members of our senior management team representing all asset classes. The SIOC meets monthly to review any ESG company policy changes, industry developments, client requirements, new product innovations and regulatory updates, and will ensure the alignment of all active ESG initiatives across the company. Ad-hoc meetings may be called to address pressing issues that may arise that need addressing in advance of the next scheduled meeting.
• Andrew McCaffery, our Global Co-Chief Investment Officer Fixed Income, Multi Asset and Private Assets (and a member of our Global Operating Committee (GOC)) also has 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 Sustainable Investing Team that is comprised of 38* 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 heads of research are also directly involved in the implementation of sustainable investing principles and procedures in the company. Specifically, our global head of research has final approval on which external ESG research vendors we engage.
• 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 31 March 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:

• #10000 Black Interns
• 30% Club Australia
• 30% Club Hong Kong
• 30% Club Investors Group
• 30% Club Japan
• 40:40 Vision
• Asia Investor Group on Climate Change (AIGCC)
• Asia Securities Industry and Financial Markets Association (ASIFMA)
• Asia Research & Engagement (ARE)
• Asian Corporate Governance Association (ACGA)
• Assogestioni
• BBBA Talent Accelerator
• Black North Initiative
• Black Young Professionals
• Bright Network Women in Leadership
• Catalyst After School Programme (CASP)
• CDP (formerly Carbon Disclosure Project)
• Climate Bonds Initiative (CBI)
• Climate Investment Summit (CIS)
• Coalition for Climate Resilient Investment (CCRI)
• Corporate Governance Forum (CGF)
• Council for Sustainable Business (CSB)
• Disability:IN
• Diversity Project
• Edinburgh Airport Sustainability Pledge
• Environment management system standard ISO 14001
• European Public Real Estate Association (EPRA)
• European Sustainable Investment Forum (EUROSIF)
• Farm Animal Investment Risk and Return (FAIRR)
• Finance for Biodiversity
• Finance for Biodiversity Pledge
• Glasgow Financial Alliance for Net Zero (GFANZ)
• Global Standard on Responsible Corporate Climate Lobbying
• Green Finance Industry Taskforce Singapore
• Green Praxis biodiversity
• Hong Kong Green Finance Association (HKGFA)
• Hong Kong Principles of Responsible Ownership (Stewardship code)
• Inspiring More Sustainability (IMS)
• Institutional Investors Group on Climate Change (IIGCC)
• International Corporate Governance Network (ICGN)
• International Regulatory Strategy Group (IRSG)
• Investment Association (IA)
• Investor Agenda
• Investor Forum (in the UK)
• Investor Group on Climate Change (IGCC)
• Investors Against Slavery and Trafficking Asia-Pacific (IAST Asia Pacific)
• Japanese Stewardship Code
• LGBT Great
• Lord Mayor's Appeal
• Lord Mayor's Appeal - We Can Be (Previously 'She Can Be')
• Maastricht University & (GRESB)
• Mental Health First Aid Training (MHFA)
• MSDUK
• (Minority Supplier Development UK)
• Natural Capital Investment Alliance (NCIA - part of Sustainable Markets Initiative)
• Net Zero Asset Managers Initiative (NZAMI) (led by IIGCC)
• One Planet Asset Manager initiative (OPAM) [One Planet Sovereign Wealth Fund (OPSWF)]
• OutBritain
• Partnership for Carbon Accounting Financials (PCAF)
• Point Zero Carbon Programme
• Powering Past Coal Alliance (PPCA)
• President’s Challenge Enabling Employment Pledge and Enabling Mark
• Principles for Responsible Investing (PRI)
• Purposeful Company
• Race at Work Charter
• Responsible Investment Association Australasia (RIAA)
• Social Enterprise UK (SEUK)
• Social Mobility Foundation (SMF)
• Stonewall
• Sustainable Trading
• Taiwan Stock Exchange’s Stewardship Principles for Institutional Investors
• Taskforce on Nature-related Financial Disclosures (TNFD) Forum
• Trans in the City - Campaign Trans Rights are Human Rights
• Transition Pathway Initiative (TPI)
• World Benchmarking Alliance (WBA)
• UK Stewardship Code
• (Financial Reporting Council (FRC))
• UK Sustainable Investment and Finance Association (UKSIF)
• European Sustainable Investment Forum (EUROSIF)
• UN Climate Change Conference (COP26)
• UNFCCC - Signatory to COP26 Financial Sector Commitment on Eliminating Agricultural Commodity-Driven Deforestation
• (Initiative re-named to Forest Sector Deforestation Action FSDA)
• Valuable 500
• Veteran Owned UK
• WeConnect International (Social Enterprise UK)
• WEF Stakeholder Capitalism Metrics
• Women in Finance Charter
• Women on Boards
• WorkWell Leaders

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: Unlabelled with sustainable characteristics