Fidelity International intends to adopt the ‘Sustainability Mixed Goals’ Sustainability Disclosure Requirements (SDR) label for three funds within its UK domiciled multi asset range.
The three funds are:
• Fidelity Sustainable Multi Asset Balanced Fund
• Fidelity Sustainable Multi Asset Conservative Fund
• Fidelity Sustainable Multi Asset Growth Fund
The funds aim to increase the value of investments over a typical market cycle of 5-7 years, whereby 70% 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’).
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.
Fidelity will use its proprietary Sustainable Development Goal (SDG) tool, the EU Taxonomy, Use-of-Proceeds bonds and Paris-Aligned benchmarks, its says, “to establish robust standards that the funds will be monitored and reported against”.
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.
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