Environmental, Social, and Governance (ESG) Investing

Investing with purpose.

What is ESG Investing?

Incorporating environmental, social, and governance factors into the investment decision-making process, ESG Investing is an approach that uses analysis to evaluate a company's sustainability and long-term value.

Investors are showing increased interest in investing alongside their values, and in dedicated ESG products, both actively and passively managed. Fidelity sees this growing investor interest in ESG solutions as a chance to provide investors with the opportunity to invest in alignment with their specific values and interests.

Investing With Impact Video

Why Nicole Connolly believes factors like sustainability and diversity can be long-term performance drivers.

Learn More About Fidelity and ESG Investing

Many Investing Approaches Under One Umbrella

Fidelity views ESG as an umbrella term, covering several types of sustainable investing, which include:

  • Negative/Exclusionary Screening, screening out companies based on a set of values
  • ESG Integration, analyzing corporate policies, statements, and reports with an eye toward mitigating risks and/or uncovering investment opportunities
  • Thematic/Impact Investing, investing in companies with the intent of generating social and environmental impact alongside financial gain
ESG IntegrationThematic/Impact InvestingNegative/Exclusionary ScreeningAvoiding investments in companiesTypes ofApproachesExamplesor industries deemed unacceptable orcontroversial, based on moral valuesand standardsEx-TobaccoEx-Fossil FuelEx-GamblingInvestorMotivationAlign investments with valuesor missionMinimize negative impactand/or risksPrimaryInvestingTechniquesExclusionary screeningIntegrating ESG factors into investmentdue diligence and analysis to identify acompany’s risks and opportunitiesBroad sustainabilityResponsible investingHighlight materiality of someESG issuesImprove standards of corporatebehavior via proxy votingand engagementEnhance returns and mitigate risksPositive screeningBest-in-class selectionIn-depth analysis of each industryProxy voting and/or engagementInvesting in companies or organizationsto generate social and environmentalimpact along with financial gainWaterAlternate EnergyPovertyGender DiversitySupport the mission of aspecific companyGenerate social and/orenvironmental impactRobust screeningIn-depth analysis to understandcompanies’ revenue streams

ESG investing was once associated with excluding or screening investments based on certain criteria. Today, ESG is about more than just excluding options based on your values. Cast a wider net for companies that manage risk and create business opportunities through this lens, and you may find the outperformance that could help you meet your long-term financial goals.

ESG Resources

Fidelity’s ESG Lineup

ESG Integration
Name Symbol
Fidelity U.S. Sustainability Index Fund FITLX
Fidelity International Sustainability Index Fund FNIDX
Fidelity Sustainability Bond Index Fund FNDSX
Thematic ESG
Name Symbol
Fidelity Select Environmental & Alternative Energy Portfolio FSLEX
Fidelity Advisor Women's Leadership Fund FWMNX
Fidelity Water Sustainability Fund FLOWX

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