Fidelity International

Fidelity International assigns decision-making and oversight for its sustainability strategy to its highest governance body and delegates implementation responsibility to various functions, teams, or committees.

The institution publishes an engagement report detailing outcomes related to sustainability impact topics and has a stewardship policy that supports environmental transitions and social best practices, encompassing client and stakeholder engagement, advocacy, and partnerships. This policy outlines criteria for successful stewardship outcomes, escalation routes for unsuccessful efforts, and defines when escalations should occur.

The institution monitors its scope 1-2 emissions and emissions from associated financing activities (Scope 3 category 15). The institution transparently identifies nature-related impacts linked to its products, services, and capital, prioritising sectors with the highest impact. It has a strategy for the protection and restoration of nature that addresses these priority sectors and discloses the monetary value of its products and services associated with the highest negative impacts on nature. Partnerships and memberships are disclosed to influence sectors, clients, and investees regarding their nature-related impacts.

Fidelity International has a material assessment which identifies material sustainability impacts across its value chain, however, the assessment lacks detail on the processes and criteria used for prioritisation. Recommendations include disclosing third-party assurance for target reporting and linking senior executive remuneration to sustainability targets. A policy engagement strategy is disclosed, but there is no commitment to avoid adverse sustainability impacts through lobbying. While stakeholder involvement in aligning lobbying with sustainability is mentioned, specific actions are not detailed. The institution discloses its Investment Management division’s exposure to fossil fuels but lacks group-level disclosure and does not address all fossil fuels in its investment policies. Limited progress on nature-positive solutions is noted, but a rationale for current status is absent. Operational Scope 3 emissions are disclosed without a breakdown by category or justification for exclusions. Although there is a commitment to norms-based exclusions for issuers failing to meet ILO responsibilities, no evidence of a risk assessment process for ILO rights is found. Lastly, it is recommended to provide examples of actions taken on salient human rights issues from assessment processes in the last three years.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.