Fidelity International is the latest asset manager to commit to a 2050 net zero target for its workplace pension products.
Fidelity has committed to halve carbon emission within FutureWise, its default investment strategy for UK-based pension schemes, by 2030, and to becoming net zero by 2050 or sooner.
These targets will align the strategy’s underlying investments with Fidelity’s wider commitments as part of the Net Zero Asset Managers initiative.
This latest step forms part of a series of initiatives by Fidelity’s Workplace Investing business to mark its commitment towards sustainability.
Other steps include:
- development of a sustainable investing policy for the Workplace Investing business
- the incorporation of Fidelity’s proprietary Sustainability Ratings into the Diversified Markets Fund within the FutureWise strategy, with plans to expand this to its other funds
- incorporating carbon metrics and ESG scores for funds on Fidelity’s platform within factsheets, using independent scoring provider MSCI
Fidelity International head of global workplace investing Keith Metters says: “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.”
As a company, Fidelity has pledged to reduce its company-wide operational carbon emissions to net zero by 2040 through meaningful business transformation. In order to have the greatest impact, Fidelity says it will prioritise avoidance and reduction of emissions through operational improvements in the energy efficiency of its offices, responsible business travel, renewable energy and carbon removal, for those emissions it is unable to eradicate.
Jenn-Hui Tan, global head of stewardship and sustainable investing at Fidelity International adds: “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.”