ESG Investing

Align your values with your investments

ESG Investing (environmental, social, and corporate governance) used to carry the stigma that investors needed to make certain concessions in order to participate. But research shows you don't necessarily have to sacrifice performance or price when choosing investments that make a positive impact.

A Closer Look at ESG Investing

Impact, Thematic, Socially Responsible, Sustainable: While these terms are often used interchangeably and are all forms of investing intended to make a societal impact, they actually evaluate investments differently.

Making a positive impact for amore sustainable futureFostering the well-being ofemployees and local communitiesConducting business in aresponsible mannerEnvironmental factors considerhow a company performs as asteward of the naturalenvironment.Social factors consider how acompany manages relationshipswith its employees, suppliers,customers, and the communitiesin which it operates.Governance factors consider thequality and reasonableness of acompany’s leadership, executivepay, audits and internal controls,and shareholder rights.TYPES OF IMPACT INVESTINGSocially ResponsibleInvesting (SRI)Excludesspecific industries.ThematicInvestingFocuses on a specificissue or theme.ImpactFirstPrioritizes socialgood over returns.EnvironmentalSocialGovernanceSustainableInvesting (ESG)Sustainable or ESG Investing looks at a company’s own environmental, social, and corporategovernance practices, as well as its overall investment decision-making process.1This lens intoday-to-day business practices gives investors a larger view of the company’s sustainability efforts,so they can more accurately assess the investment’s risk and potential return.

Who's Using ESG?

Interest in ESG spans investor profiles, from millennials to high-net-worth investors.

Interested in addingCurrently own2018201620182016201620182016201820162018MenMillennialsGen-Xers$10M+ in assetsWomen19%26%38%40%57%31%31%39%31%30%9%10%15%37%28%15%24%20%27%19%

The Case for ESG Investing

Research shows you don’t have to give up performance and price when looking to align your values with investments.

Percentage of Sustainable Funds by Performance Quartile2
2017 2016 2015
Top quartile 24% 28% 28%
2nd quartile 30% 27% 29%
3rd quartile 26% 30% 24%
Bottom quartile 20% 15% 19%
On Par Expenses
Number ofshare classesFee levelHigh88112Above averageAverage117Below average97Low102Of the 516 ESG share classes,the majority of fees are at orbelow average.61%3

Fidelity’s ESG Lineup

Only Fidelity offers ESG Index Investing in every major asset class
Name Symbol
Fidelity U.S. Sustainability Index Fund FNIDX
Fidelity International Sustainability Index Fund FITLX
Fidelity Sustainability Bond Index Fund FNDSX
Actively Managed Thematic Funds
Name Symbol
Fidelity Select Environmental & Alternative Energy Portfolio FSLEX
Fidelity Advisor Women's Leadership Fund FWMNX
 
 

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