People are becoming more interested than ever in sustainability and the environmental, social and governance (ESG) standards of the companies they buy from and invest in. As a member of a workplace pension, you too are an investor. Just like you can make lifestyle choices with the environment in mind, like recycling and reducing your carbon footprint, you can also make sustainable choices for your pension.
We’re all investors
Find out why it's important to understand how and where your pension savings are invested
What is sustainable investing?
At Fidelity, we use the term ‘sustainable investing’ to encompass ESG issues and related topics. ESG stands for Environmental, Social and Governance. Analysing ESG factors can be a way to assess the sustainability and social impact of an investment in a company and to identify risks. Fund managers can incorporate this information into their investment process. Some of the things that might be considered are:
Greenhouse gas (GHG emissions)
Resource depletion, including water
Waste and pollution
Loss of biodiversity
Working conditions, including slavery and child labour
Local communities, including indigenous communities
Health and safety
Employee relations and diversity
Bribery and corruption
Political lobbying and donations
Board diversity and structure
Minority shareholder rights
Find out more
In our video Fidelity Investment Director Tom Stevenson sheds some light on sustainable investing and ESG and the different ways investors can tap into the theme.
Check your investments
It’s a good idea to regularly assess your investment needs to make sure they align with your values and overall savings goals. You can check where your Fidelity workplace pension is invested by logging into PlanViewer.
1 - Fidelity International Whitepaper ‘Outrunning a crisis: Sustainability and market outperformance’, May 2020
Important information: Investors should note that the views expressed may no longer be current and may have already been acted upon. An Investment Manager’s focus on securities of companies which maintain strong environmental, social and governance (“ESG”) credentials may result in a return that at times compares unfavourably to similar products without such focus. No representation nor warranty is made with respect to the fairness, accuracy or completeness of such credentials. The status of a security’s ESG credentials can change over time. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.