New Fidelity climate fund targets decarbonisation

8 September 2021

Fidelity International has launched a new climate fund investing in companies focused on decarbonisation.

Fidelity Funds – Sustainable Climate Solutions Fund will be managed by Velislava Dimitrova and Cornelia Furse.

The new offering aims to achieve long-term capital growth by investing in companies with technologies and solutions that reduce greenhouse gas emissions, covering areas including electric vehicles, green hydrogen, autonomous vehicles, renewable energy, smart grids, industrial automation and agricultural efficiency.

The fund, which is classified Article 8 under the EU Sustainable Finance Disclosure Regulation, will have a minimum 70% of its net assets invested in companies that maintain sustainable characteristics, Fidelity said.

Velislava Dimitrova, lead-portfolio manager, Fidelity, said: “Climate change has prompted decarbonisation policies around the world to help achieve global carbon neutrality. The world needs to decarbonise urgently, at a faster pace than we have seen to date, and investors can play a major role in supporting this change.

“The decarbonisation challenge is on a scale unmatched in human history. But it is one that offers the companies meeting it a 30-year period of growth that surpasses even the internet revolution. Our Sustainable Climate Solutions Fund offers investors access to this long-term global megatrend.”

Cornelia Furse, co-portfolio manager, Fidelity International, comments: “Unlike other climate funds, we focus on carbon reduction, not carbon avoidance. Investing in low emission sectors will not be enough to reverse 150 years of rising greenhouse gas emissions. Our fund will identify and invest in existing and emerging solutions that help decarbonise society.

“The decarbonisation trend is currently at the early stage of penetration and will be driven by a combination of innovation, improving economics, accelerated governmental support and changing consumer behaviours. It is the stocks exposed to these themes that will drive superior investment opportunities for our investors.”

The new fund forms part of Fidelity’s expanding Sustainable Family of Funds.

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