Fidelity International (FIL)
Fidelity International (FIL) is a private, international investment management firm headquartered in London with 25 offices globally across the United Kingdom, Ireland, India, Canada, Asia, and Germany. It joined the Net Zero Asset Managers Initiative on 11 December 2020 and its initial target disclosure was published on 1 November 2021.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
35% of total AUM (USD $151 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio decarbonisation reference baseline
For the purposes of our firm-wide reduction target, 102.28 tCO2e / $mn invested, representing our carbon footprint as at 1 January 2020.
Target(s):
Portfolio coverage target
Fund-level alignment target: Align the stated AUM proportion to a net zero pathway according to Fidelity’s proprietary Climate Rating (based on the Net Zero Investment Framework portfolio coverage approach), with the first interim target in 2025 and at five-year intervals thereafter.
Portfolio decarbonisation reference target
Firm-wide reduction target: 50% reduction in financed emissions across equity and corporate bond holdings globally by 2030 from the Baseline Year.
GHG scopes included:
The firm-wide reduction target covers Scope 1 & 2 emissions of our investee companies, with Scope 3 due to be integrated at a later date. The fund-level alignment target will include Scope 3 analysis both as a current measurement and as part of issuer target setting.
Methodology:
Net Zero Investment Framework
Scenario(s):
IPCC 1.5o C pathway P1
Additional information
Proportion of AUM committed:
The AUM in scope represents FIL’s global proportion of assets managed in portfolios which promote environmental or social characteristics (including those which we currently categorise as Article 8 or 9 of SFDR). These funds (which include our Sustainable Family fund range) are those with a higher focus on sustainability and as such, will be the first set to align to net zero, with the target setting for these funds individually starting in 2022. We expect to be setting interim targets for 2025 and at 5-year intervals thereafter reaching full alignment by 2050. We expect the proportion of our funds which promote environmental and social characteristics or which target sustainability objectives to continue to grow over time. For the remainder of our funds and our institutional segregated mandates, we will be continuing to assess the applicability and integration of net zero objectives in their investment mandates in partnership with our clients and distributors.
Policy on coal and other fossil fuel investments:
Yes, our energy transition / coal phase-out policy is based on the IPCC 1.5o C scenario, whereby coal usage should end in OECD markets by 2030 and globally by 2040. It is a policy focused on engagement to accelerate transition where achievable. Where companies show no progress towards, and no potential for, transition after an engagement period not exceeding three years, we will look to divest.
Further information on this policy is available here.
Further information:
Further information on our full approach to net zero, climate rating methodology, energy transition policy and climate stewardship is available here.