The latest developments in the ESG space.

Fidelity International
Fidelity International has just confirmed that it intends to adopt the Sustainability Mixed Goals label in connection to the UK's Sustainability Disclosure Requirements (SDR) label for three funds within its UK domiciled multi asset range.

The Financial Conduct Authority (FCA) has introduced four labels to help UK consumers navigate the sustainable investment product landscape – these are Sustainability Mixed Goals, Sustainability Improvers, Sustainability Impact and Sustainability Focus. The Sustainability Mixed Goals label applies to investment products that pursue a mix of sustainability objectives and approaches from at least two of the other label categories, the firm said in a statement.

The three Fidelity funds – Fidelity Sustainable Multi Asset Balanced Fund, Fidelity Sustainable Multi Asset Conservative Fund, and Fidelity Sustainable Multi Asset Growth Fund â€“ aim to increase the value of investments over a typical market cycle of five to seven years. This is where 70 per cent or more of the assets will invest in (i) funds and other assets which contribute to positive environmental and/or social outcomes (Sustainability Focus) and (ii) funds which have the potential to contribute to positive environmental outcomes set out by the Paris Agreement’s climate targets by restricting carbon emissions exposures in line with EU Paris-aligned benchmark (PAB) requirements (Sustainability Improvers).

Fidelity’s proprietary Sustainable Development Goal (SDG) tool, the EU Taxonomy, Use-of-Proceeds bonds and Paris-Aligned benchmarks, are used to establish the robust standards that the funds will be monitored and reported against, the firm continued.

Fidelity previously announced its intention to adopt the Sustainability Focus SDR label for three funds within its UK-domiciled equity fund range – the Fidelity Sustainable UK Equity Fund, Fidelity Sustainable Global Equity Fund and Fidelity Sustainable European Equity Fund.

The labels complement Fidelity’s Sustainable Investing Framework, offering clients enhanced clarity and transparency on Fidelity's global approach to sustainable investing while also aligning with local environmental, social and governance (ESG) regulations and client requirements.

“At Fidelity International we remain dedicated to supporting investors in finding innovative investment solutions, balancing both financial and sustainability requirements,” Jenn-Hui Tan, chief sustainability officer at Fidelity International, said. “We believe the SDR framework plays a role in promoting transparency and consistency to our UK clients when it comes to sustainable investing, empowering investors to make informed decisions that align with their values.” 

Fidelity International offers investment solutions and services and retirement expertise to more than 2.8 million customers globally.

Schroders, a global investment manager, has also recently adopted four of the FCA's sustainability disclosure requiremets (SDR) labels., with the expected adoption of labels for a further three funds. These encompass the Sustainability Focus, Sustainability Impact, Sustainability Improvers and Sustainability Mixed Goals labels, the firm said in a statement.