Sustainable investing in under 2 minutes

Sustainable investing, socially responsible investing (SRI), and environmental, social and governance (ESG) investing are a few investment terms you may have increasingly come across in recent years.
Sustainable investing is a long-term investment strategy which seeks to integrate environmental, social and governance considerations into its process. It seeks to invest in companies with strong sustainability credentials and which look after all of its stakeholders. It is not just an investment strategy, it’s also a way to have a positive impact on the world.
Over the last decade, sustainability has become increasingly important, and now more than US$30 trillion dollars of assets are invested globally in a sustainable manner. Clients all across the world are telling us that our approach to ESG is a key component of how they select their managers and how they will allocate their assets.
The approach at Fidelity is simple. We seek to integrate environmental, social and governance considerations in the way we invest. This will ultimately change the way we research companies, meet and engage with management teams, and construct portfolios and solutions for our clients. We will implement this with 3 related elements. Firstly, integrate ESG analysis within our research platform. Secondly, engagement with investee companies and policy makers, and collaboration with other investors and civil society organisations. We want to position ourselves as leaders in this space.
This year, we have published out first sustainability report, and soon our first climate report, established a net zero carbon emission target for our business, joined platforms like Climate Action 100+, created taskforces in key markets like Japan, and received an A+ rating from the UNPRI (United Nations Principles for Responsible Investment).
What is ESG?
ESG stands for Environment, Social and Governance. Analysing ESG factors can be a keyway to assess the sustainability and social impact of an investment in a company or a business.

ESG – Environment, Social, Governance
Environmental
• Climate change
• Greenhouse gas (GHG) emissions
• Resource depletion, including water
• Waste and pollution
• Deforestation
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

What is Sustainable Investing?
Sustainable investing is an investment approach that considers environmental, social and governance (ESG) factors, alongside financial factors, with the aim of generating better returns and to manage risk. It involves investing in companies that demonstrate strong sustainability credentials and that focus on their stakeholders. For us, sustainable investing is more than just an investment approach – it not only helps us to deliver better performance for our clients, but it also has a positive impact on the world.

More readings here:
Sustainable investing at Fidelity:
https://www.fidelity.com.au/insights/...
Commitment to sustainable investing:
https://www.fidelity.com.au/sustainab...
Our proprietary sustainability ratings:
https://www.fidelity.com.au/sustainab...
Five major sustainable investing myths:
https://www.fidelity.com.au/insights/...

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