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Sustainable investing

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

Watch time: 1 min and 55 seconds

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:

Environmental

  • Climate change
  • Greenhouse gas (GHG emissions)
  • Resource depletion, including water
  • Waste and pollution
  • Deforestation
  • Loss of biodiversity

Social

  • Working conditions, including slavery and child labour
  • Local communities, including indigenous communities
  • Conflict regions
  • Health and safety
  • Employee relations and diversity

Governance

  • Executive pay
  • Bribery and corruption
  • Political lobbying and donations
  • Board diversity and structure
  • Tax strategy
  • Minority shareholder rights
What about sustainable investing and my workplace pension?
Are there different ways of investing sustainably?
Will it impact investment performance?
Are sustainable funds a risky investment?
And what about climate risk, specifically?


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.

Sources

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. The Investment Manager’s focus on securities of issuers which maintain sustainable characteristics may affect the fund’s investment performance favourably or unfavourably in comparison to similar funds without such focus. The sustainable characteristics of securities may change over time. 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.