Sustainable Investing

Evaluation of environmental, social, and governance (ESG) factors that impact a company's sustainability and long-term value.

What is Sustainable Investing?

Sustainable investing provides a way to invest in strategies using a disciplined evaluation of one or all of these considerations:

  • Environmental themes, such as investing in companies that are responding to consumer demand for sustainable practices
  • Social themes, such as investing in companies committed to a diverse and inclusive workplace
  • Governance themes, such as investing in companies committed to diverse board composition, strong oversight, and shareholder-friendly practices

Investors are increasingly looking to influence social, environmental, and governance outcomes through sustainable investing solutions. Fidelity sees this growing investor interest in sustainable solutions as a way to provide investors with the opportunity to invest in alignment with their specific values and interests or incorporate these factors into the investing decision-making process.

Fidelity Focused Insights: Investing in the Future of Sustainability Video

Hear from portfolio manager Nicole Connolly as she discusses how sustainable investing incorporates environmental, social, and governance factors into the investment decision-making process.

Learn More About Fidelity and ESG Investing

Many Investing Approaches under One Umbrella

Fidelity views sustainable investing as an umbrella term covering several approaches, 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 Investing, investing in companies with the intent of generating social and environmental impact alongside financial gain
ESG IntegrationThematicNegative/Exclusionary ScreeningAvoiding investments in companiesTypes ofApproachesExamplesor industries deemed unacceptableor controversial, based on moralvalues and 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 gainWaterAlternative energyPovertyGender diversitySupport the mission of aspecific companyGenerate social and/orenvironmental impactRobust screeningIn-depth analysis to understandcompanies’ revenue streams

Sustainable investing was once associated with excluding or screening investments based on certain criteria. Today, sustainable investing 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 opportunities that could help you meet your long-term financial goals.

Sustainable Investing Resources

Fidelity’s Sustainable Investing Funds

Thematic
Active
Name Symbol
Fidelity Advisor Climate Action Fund

Invests in companies that are removing, reducing, or mitigating the effects of climate change.

FCAUX
Fidelity Advisor Environmental Bond Fund

Invests in the debt of companies and projects that are recognizing, disclosing, and reducing environmental risk.

FEBFX
Fidelity Environmental and Alternative Energy Fund**

Focuses on alternative and renewable energy, energy efficiency, pollution control, water infrastructure, waste and recycling technologies, or other environmental support services.

FSLEX
Fidelity Advisor Women's Leadership Fund

Invests in companies that prioritize and advance women's leadership and development.

FWMNX
Fidelity Women's Leadership ETF*

An actively managed ETF that invests in companies that prioritize and advance women's leadership.

FDWM
Fidelity Water Sustainability Fund

Invests in companies helping to deliver safe, reliable, and easily accessible water.

FLOWX
Passive
Fidelity Clean Energy ETF

Invests in companies that distribute, produce, or provide technology or equipment to support the production of energy from solar, wind, hydrogen, and other renewable sources.

FRNW
ESG Integration
Active
Name Symbol
Fidelity Advisor Sustainability U.S. Equity Fund

Provides exposure to current and future sustainable leaders through evaluating a company's ESG profile.

FSEQX
Fidelity Sustainability U.S. Equity ETF*

An actively managed ETF that provides exposure to current and future sustainable leaders through evaluating a company's ESG profile.

FSST
Passive
Fidelity U.S. Sustainability Index Fund

Tracks a benchmark that targets companies with high ESG ratings, while maintaining broad market exposure.

FITLX
Fidelity International Sustainability Index Fund

Tracks an international stock benchmark that targets companies with high ESG ratings, while maintaining broad market exposure.

FNIDX
Fidelity Sustainability Bond Index Fund

Tracks a benchmark of investment-grade government, corporate, and asset-backed securities from issuers with strong sustainability profiles.

FNDSX

Discover ESG Pro®

We believe that sustainable investing can be complicated. Discover ESG Pro®,

software that helps RIAs start and grow their ESG investing practice. We're

bringing together ESG model construction tools and ESG client experience tools,

in one end-to-end solution.

Learn More
 
 

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