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Fidelity Investments

PRI reporting framework 2020

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Outputs and outcomes

LEI 12. How ESG incorporation has influenced portfolio composition

12.1. Indicate how your ESG incorporation strategies have influenced the composition of your portfolio(s) or investment universe.

Describe any reduction in your starting investment universe or other effects.

In order to meet specific client objectives, Fidelity utilizes company specific third-party ESG data and a unique filtering process to screen and identify positive and negative issuers from a baseline global index. Following the filtering process, the strategies leverage Fidelity's fundamental research across the organization to drive the stock selection process and advanced portfolio construction techniques to build a portfolio that meets the investment objective.

Specify the percentage reduction (+/- 5%)

26 %

Describe any alteration to your investment universe or other effects.

Our actively managed Select Environmental and Alternative Energy portfolio invests primarily in companies engaged in business activities related to alternative and renewable energy, energy efficiency, pollution control, water infrastructure, waste and recycling technologies, or other environmental support services. The portfolio normally invests at least 80% of assets in securities of companies principally engaged in these activities.

Fidelity's Women's Leadership actively managed mutual fund follows a global equity strategy of investing in both growth and value stocks, targeting companies that fulfill at least one of three criteria:

1. A woman on the senior management team;

2. At least one-third female board members; or

3. Demonstrated commitment through gender diversity initiatives and policies to attract, retain, and promote women.

As an actively managed fund, Fidelity Women’s Leadership Fund is uniquely capable of delving deeper, beyond focusing purely on gender demographics, to evaluate companies that are incorporating these progressive gender diversity policies. Spanning all sectors, this fund provides investors with an opportunity to support women and incentivize companies to implement their own gender diversity initiatives and advance more women into leadership positions.

Select which of these effects followed your ESG integration.

          Our portfolio managers and analysts incorporate ESG factors and research into the “mosaic” they use to evaluate investment opportunities.

12.2. Additional information.[Optional]

Generally, ESG matters serve as a factor in security valuation and investment management. One key to analyzing any security is to develop an understanding of the material factors that contribute to the value of a security. These factors are most often understood to be financial factors, yet other factors that may be construed as non-financial could be viewed as material to the value of a security. Our investment staff includes all material factors into their security analysis process as they assess the valuation and outlook of a security. Our in-depth research and access to management is central to our investment process and we regularly meet with company management across all sectors and regions. These meetings provide us with opportunities to discuss ESG matters. 

LEI 13. Examples of ESG issues that affected your investment view / performance (Private)