Fidelity International (Fidelity) has committed to reducing carbon emissions within FutureWise, its default investment strategy for UK-based pension schemes, to half by 2030, and to becoming net zero by 2050 or before.
These targets will align the strategy’s underlying investments with Fidelity’s commitment to support the goal of net zero greenhouse gas emissions by 2050 or sooner as part of the Net Zero Asset Managers initiative.
Fidelity will work closely with its investment partners to agree targets for the proportion of FutureWise Investments’ assets to be managed in-line with the achievement of net zero emissions by 2050 or earlier.
This latest step forms part of a series of initiatives established by Fidelity’s Workplace Investing business to mark its commitment towards sustainability. These include:
- Development of a sustainable investing policy focussing specifically on our Workplace Investing business and how we propose to address sustainability risks as a platform provider, which will be reviewed and expanded as the proposition evolves
- The incorporation of Fidelity’s proprietary Sustainability Ratings into the Diversified Markets Fund within the FutureWise strategy, with plans to expand this to its other funds
- Incorporating carbon metrics and ESG scores for funds on our platform within factsheets, using independent scoring provider MSCI
Keith Metters, Head of Global Workplace Investing at Fidelity International comments: “With more than 23 million people in the UK enrolled within defined contribution (DC) pension schemes*, it’s imperative that the industry provides solutions to allow plan sponsors, trustees and members to make a positive impact with retirement savings. Almost two-thirds (61%) of our members believe workplace pension schemes should automatically incorporate sustainability within their default investment strategy, and today’s announcement marks our latest step towards this**.
“Our pledge to reduce carbon emissions within FutureWise is one of several commitments we have made towards a more sustainable future – in both how we operate as a company, as well as in the products and services we offer our clients and their members.”
As a company, Fidelity has formally pledged to reduce its company-wide operational carbon emissions to net zero by 2040 through meaningful business transformation. In order to have the greatest impact, Fidelity will prioritise avoidance and reduction of emissions through operational improvements in the energy efficiency of its offices, responsible business travel, renewable energy and carbon removal, for those emissions it is unable to eradicate.
Jenn-Hui Tan, Global Head of Stewardship and Sustainable Investing at Fidelity International comments: “At Fidelity International, we recognise that climate change poses one of, if not the most, significant risks to the long-term profitability and sustainability of companies, including our own. We take a pro-active approach to minimising our own environmental footprint and we are committed to achieving net zero emissions by 2040 for Fidelity International’s operational emissions.
“Our announcement today to achieve net zero for FutureWise aligns with our commitment under the Net Zero Asset Manager initiative to support investing aligned with net zero emissions by 2050 or sooner and to accelerate that transition across all of our investment portfolios.”