Fidelity International launches Sustainable Climate Solutions Fund

Fidelity International has launched the Fidelity Funds — Sustainable Climate Solutions Fund, a unique global equity portfolio of decarbonisation leaders and beneficiaries.

To keep global warming to the 1.5 °C above pre-industrial levels as recommended in the Paris Agreement, the global economy will need to go through a radical transformation, affecting most areas of human activity. It means reversing over 150 years of rising greenhouse gas emissions and reaching, or exceeding, net zero targets within 30 years – at a cost of $144 trillion, almost seven times annual US GDP.

The race to net zero is on, and according to Fidelity International analysts, almost a quarter of all companies will be carbon neutral by the end of this decade.

Managed by experienced sustainable thematic investors, Velislava Dimitrova and Cornelia Furse, the Fidelity Funds — Sustainable Climate Solutions Fund aims to achieve long-term capital growth by investing in companies which enable global decarbonisation efforts. These companies offer technologies and solutions that materially reduce greenhouse gas emissions versus incumbent technologies. Investments will include companies involved in the design, manufacture or sale of products or services in technologies or solutions such as (but not limited to): electric vehicles, green hydrogen, autonomous vehicles, renewable energy, smart grids, industrial automation and agricultural efficiency.

Velislava Dimitrova, Lead-Portfolio Manager, Fidelity International comments: Climate change has prompted decarbonisation policies around the world to help achieve global carbon neutrality. The world needs to decarbonise urgently, at a faster pace that we have seen to date, and investors can play a major role in supporting this change.

“The decarbonisation challenge is on a scale unmatched in human history. But it is one that offers the companies meeting it a 30-year period of growth that surpasses even the internet revolution. Our Sustainable Climate Solutions Fund offers investors access to this long-term global megatrend.”

Cornelia Furse, Co-Portfolio Manager, Fidelity International comments: “Unlike other climate funds, we focus on carbon reduction, not carbon avoidance. Investing in low emission sectors will not be enough to reverse 150 years of rising greenhouse gas emissions. Our fund will identify and invest in existing and emerging solutions that help decarbonise society.

“The decarbonisation trend is currently at the early stage of penetration and will be driven by a combination of innovation, improving economics, accelerated governmental support and changing consumer behaviours. It is the stocks exposed to these themes that will drive superior investment opportunities for our investors.”

The Fidelity Funds — Sustainable Climate Solutions Fund, which is classified Article 8 under the EU Sustainable Finance Disclosure Regulation (SFDR), forms part of Fidelity’s expanding Sustainable Family of Funds. The fund adopts a sustainable thematic strategy under which a minimum of 70% of the fund’s net assets will be invested in securities of companies that maintain sustainable characteristics.

“Fidelity manages more than $10bn in sustainable assets across its equity, fixed income and multi asset fund ranges,” says Christian Staub, Managing Director Europe, Fidelity International. “We strive to become a trusted partner to our clients, delivering innovative investment solutions that meet their financial and non-financial objectives. Investing sustainably is key to achieving this. Our Sustainable Family of Funds has grown substantially in recent years, and I am pleased that we can now offer clients access to the decarbonisation megatrend.

“The race to net zero is on. At Fidelity, we have also committed to reduce our operational carbon emissions to net zero by 2030, and we’re working collaboratively with peers in the Net Zero Asset Managers initiative, supporting the transition towards global net zero emissions.”

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