Fidelity International has announced plans to adopt the ‘Sustainability Focus’ label under the UK’s Sustainability Disclosure Requirements (SDR) for three equity funds in its UK-domiciled range. Together, these funds—Fidelity Sustainable UK Equity Fund, Fidelity Sustainable Global Equity Fund, and Fidelity Sustainable European Equity Fund—manage assets exceeding £865 million ($1.09 billion).
The funds aim to grow investments over a five-year period, committing at least 70% of their assets to companies contributing to environmental or social outcomes. Fidelity will utilize its proprietary Sustainable Development Goal (SDG) tool and the EU Taxonomy to ensure compliance with SDR standards, providing robust monitoring and reporting.
The Financial Conduct Authority (FCA) introduced the SDR labelling framework on July 31, 2024, to enhance consumer trust and transparency. The four labels include ‘Sustainability Mixed Goals,’ ‘Sustainability Improvers,’ ‘Sustainability Impact,’ and ‘Sustainability Focus,’ with the latter specifically designed for funds investing in assets that meet stringent sustainability criteria.
This move aligns with Fidelity’s global Sustainable Investing Framework, ensuring transparency and compliance with evolving ESG regulations. The company is also exploring the adoption of additional SDR labels for other funds in its portfolio.
Jenn-Hui Tan, Chief Sustainability Officer at Fidelity International said, “The introduction of SDR is a significant step in the evolution of sustainable investing in the UK. The ‘Sustainability Focus’ label aligns closely with the approach of these funds and builds on our management of SFDR Article 9 funds for European investors. We are committed to supporting clients in achieving their sustainable investing goals.”