Fidelity International has said it intends to adopt the ‘Sustainability Focus’ Sustainability Disclosure Requirements (SDR) label for three funds within its UK domiciled equity fund range, with assets totalling in excess of £865m.
The three Fidelity funds – Fidelity Sustainable UK Equity Fund, Fidelity Sustainable Global Equity Fund and Fidelity Sustainable European Equity Fund – aim to increase the value of investments over a period of five years, whereby 70% or more of the gross assets will invest in companies which contribute to environmental and / or social outcomes.
Fidelity’s proprietary Sustainable Development Goal tool and the EU Taxonomy are used to establish the standard that the funds will be monitored and reported against, under the requirements of SDR.
Since 31 July 2024, the Financial Conduct Authority (FCA) has introduced four labels to help UK consumers navigate the investment product landscape and enhance consumer trust – these are ‘Sustainability Mixed Goals’, ‘Sustainability Improvers’, ‘Sustainability Impact’ and ‘Sustainability Focus’. Sustainability Focus products aim to invest in assets that are environmentally and/or socially sustainable, determined using a “robust, evidence-based standard that is an absolute measure of sustainability”.
Fidelity’s aid the labels complement its overarching 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.
Looking ahead, Fidelity said it is also reviewing opportunities for adopting other SDR labels within its fund range.
Jenn-Hui Tan, Chief Sustainability Officer at Fidelity International comments: “We welcome the introduction of SDR and see it as an important stage in the development of sustainable investing in the UK, giving investors greater confidence to allocate to sustainable funds. We believe the ‘Sustainability Focus’ label aligns well with the established investment approach of these funds and builds on our approach to managing SFDR Article 9 funds for European investors.
“We look forward to continue working with clients to meet their sustainable investing needs.”
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