Fidelity Investments

The financial institution releases an engagement or stewardship report detailing the results of its efforts to address sustainability impact topics. Additionally, it maintains a stewardship policy that aligns with its sustainability strategy, promoting environmental transitions and social best practices.

Fidelity Investments’ sustainability team conducts in-house research based on SASB frameworks, but there is no evidence of objective criteria for identifying materiality. It is recommended that performance criteria for senior executive remuneration be linked to sustainability targets. The institution discloses scope 1-2 emissions but could clarify scope 2 emissions as market-based or location-based, and while it reports scope 3 emissions, financed emissions are not disclosed. Recommendations include establishing a transition plan for operations, supply chain, and portfolio, ensuring scope 1-3 emissions align with interim targets, and providing a breakdown of clients by income group. It should disclose processes to avoid divestment from low-income countries, include risks related to ILO rights in its risk assessment, identify social risks in the net zero transition, and provide examples of actions taken on salient human rights issues from recent assessments. The financial institution expects its suppliers to respect the ILO’s fundamental rights at work but could strengthen its language to formalise this commitment in a policy document. It has the opportunity to disclose its method for determining a living wage in its operational regions and to publish a policy statement against bribery and corruption. While suppliers are required to prohibit corrupt activities, there is no disclosure regarding anti-bribery and anti-corruption clauses in contracts.

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.