The impact your funds have on climate change

It’s important that we lay out our approach to climate change for Fidelity’s UK Pension Business (FIL Life business), and the investments we make on behalf of our clients. We need to understand the impact climate change could have, how we can mitigate the effects, and how best to adapt to it.

It’s also important for you to understand the climate impact of the funds you invest in. By law we have to produce reports about a fund’s climate impact – but providing this information is also the right thing to do. Because when you understand how your investments affect the planet, you can make informed choices about where you put your money.

The Task Force on Climate-Related Financial Disclosures (TCFD) was created to improve climate-related financial reporting. Its aim is to help financial organisations provide clear, comparable and consistent information for investors.

We’ve produced TCFD reports for the FIL Life business, and for each of our contract-based funds and strategies.

FIL Life is a separate legal entity and subsidiary of Fidelity International. The FIL Life TCFD Report sets out our approach to climate change as an organisation. It gives an understanding of our strategy, and shows how we identify, assess and manage climate-related risks and opportunities.

Climate-related issues can significantly influence investment decisions. So the FIL Life report also describes how we engage with Fund Managers to understand their approach to climate change. We expect them to set clear goals to reduce carbon emissions.

Because we’re providing information about climate change, there are some words, phrases and industry terms we have to use. But if something isn’t completely clear in the report, you’ll find a full explanation in the glossary.

Some funds invest into companies within different industries, and each industry has an impact on the environment. That means the impact of each fund will vary depending on where and how they’re invested.

These TCFD product reports give a summary of each fund’s climate impact (such as its Greenhouse Gas emissions). They also contain information about where we get our data and how we work it out.

You can use the reports to check that your funds fit with your overall investment strategy. And it’s also worth reviewing your pension regularly to make sure it’ll continue to meet your retirement goals.

Type the name of a fund or strategy into the search box to find the climate report for that investment. You can view the report online or download it as a PDF.

Don’t know which funds your pension is invested in? You can find them on your Annual Benefit Statement. Or go to  PlanViewer, then ‘Plan Information’ and ‘View your Investments’. Check the ‘Investment Name’ then copy and paste the name of the fund into the search box.

We always try to use language that’s clear, simple and easy to understand, even if you don’t know much about climate change, or sustainability. And if a word or phrase is more technical or complicated, we explain it as we’re going along.

‘Sustainability’ simply means existing and developing without depleting our planet’s natural resources. ‘Sustainable investing’ means investing in funds that consider environmental or social factors.

FIL Life are only required to produce TCFD product reports for the funds for certain types of scheme that it manages, these are the personal and stakeholder pensions and the buy out plans. If you can’t find the funds that you are invested in on this site it might be because you are invested into a different type of pension for which we don’t have to provide this information.

If you know that you are invested in a pension which is part of the Fidelity Master Trust, you can find the latest Master Trust TCFD report here.

Some pension schemes may have produced their own TCFD reports. If they have shared it with us you can access it on the Cost & Charges webpage by searching for the name of the scheme.