The impact your funds have on climate change
Search for a fund to find out what type of companies it invests in, and the impact it has on the environment.
Climate-related information for investors
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.
TCFD stands for The Task Force on Climate-Related Financial Disclosures. The TCFD created a framework to help us give our investors clear, easy-to-compare information about the environmental impact of their investments.
These product reports give an estimate of the emissions generated by the companies within a fund or strategy. It should help you understand the climate-related risks and opportunities of the industries you’re invested in. And it should also help you make informed choices about where you put your money.
These TCFD reports give a summary of each fund or strategy’s climate impact, such as its Greenhouse Gas (GHG) emissions. It also provides information about where we get our data and how we work it out. And it shows what could happen to the industries your fund or strategy invests in under three different climate scenarios.
If you invest in a strategy, your report will show a breakdown of the industries it invests in at three key points. These are 25 years from retirement, 10 years from retirement, and on the year you're due to retire.
The FCA has introduced new rules and guidance for Asset Managers and certain FCA-regulated Asset Owners to make mandatory disclosures. (Asset Owners like FIL Life are pension providers and life insurers. Asset Managers like Fidelity International invest wealth. They monitor and assess the market to look for threats and opportunities, and adjust clients' portfolios accordingly.)
These reports must be produced each year, and be consistent with the TCFD’s recommendations.
FIL Life - the report sets out how FIL Life takes climate-related risks and opportunities into account in managing or administering investments on behalf of clients and consumers.
Product reports - the report provides a baseline set of consistent, comparable disclosures for products and portfolios. This includes a set of metrics that shows the emissions of each fund or strategy.
The rules aim to increase transparency on how firms are managing climate-related risks and opportunities. They enable clients and consumers to make considered choices.
The TCFD product report should give you an understanding of the climate-related impacts for the fund or strategy you're invested into. You can use the reports to check your funds fit with your overall investment strategy. It’s worth reviewing your pension regularly to make sure it’ll continue to meet your retirement goals.
You can find the funds or strategy you're invested in 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 or strategy into the search box.
All funds and strategies within your workplace pension scheme have a report, except for cash or cash-like funds. If you're still struggling to find a report, contact our Service Centre for help.
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. We explain what the different types of Greenhouse Gases are and where they come from, and we never use an acronym or abbreviation without explaining it first. If a word or phrase is technical or complicated, we say what it means as we're going along.
If you are invested directly or via an ISA into funds where the manager is based in the UK , it is likely that the Fund Manager will have produced their own TCFD report as well as Product Reports for the funds they administer. You will usually have to visit the fund manager's website to access these.
Different reports may show different metrics, or numbers, for the same fund. This is because there are different data providers, and they don't always calculate information in the same way. If data has been estimated, this may have been done differently too.
The metrics within the reports are calculated annually for the period 1 January - 31 December.
We're not required to produce TCFD product reports for cash or cash-like funds.