Fidelity International default fund targets net-zero by 2050

Fidelity International has announced plans to halve the carbon emissions within its default investment strategy for UK-based pension schemes, FutureWise, by 2030, with a further aim to be net-zero by 2050 or before.

The group stated that it will work “closely” with its investment partners to agree targets for the proposition of FutureWise Investments’ assets to be managed in line with the objective of achieving net-zero emissions by 2050 or earlier.

The targets will also see the the strategy’s underlying investments aligned with the group’s prior commitment to support the goal of net-zero greenhouse gas emissions by 2050 or sooner, as part of the Net Zero Asset Managers initiative.

The announcement marks the latest in a series of initiatives established by Fidelity’s Workplace Investing Business to mark its commitment to sustainability, including the development of a sustainable investing policy.

Alongside this, Fidelity has incorporated it's proprietary Sustainability Ratings into the Diversified Markets Fund within the FutureWise strategy, with plans to expand this to its other funds, and has incorporated carbon metrics for funds on its platforms within factsheets.

Fidelity International has also previously pledged to reduce its company-wide operational carbon emissions to net zero by 2040 through “meaningful business transformation”.

As part of this, the group has been prioritising the avoidance and reduction of emissions through operational improvements in the energy efficiency of its offices, responsible business travel, and renewable energy and carbon removal for those emissions it is unable to eradicate.

Commenting on the plans, Fidelity International head of global workplace investing, Keith Metters, stated: “With more than 23 million people in the UK enrolled within defined contribution (DC) pension schemes, it’s imperative that the industry provides solutions to allow plan sponsors, trustees and members to make a positive impact with retirement savings.

“Almost two-thirds (61 per cent) of our members believe workplace pension schemes should automatically incorporate sustainability within their default investment strategy, and today’s announcement marks our latest step towards this.

“Our pledge to reduce carbon emissions within FutureWise is one of several commitments we have made towards a more sustainable future - in both how we operate as a company, as well as in the products and services we offer our clients and their members.”

Fidelity International head of stewardship and sustainable investing, Jenn-Hui Tan, added: “At Fidelity International, we recognise that climate change poses one of, if not the most, significant risks to the long-term profitability and sustainability of companies, including our own.

“We take a pro-active approach to minimising our own environmental footprint and we are committed to achieving net zero emissions by 2040 for Fidelity International’s operational emissions.

“Our announcement today to achieve net zero for FutureWise aligns with our commitment under the Net Zero Asset Manager initiative to support investing aligned with net zero emissions by 2050 or sooner and to accelerate that transition across all of our investment portfolios.”

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