At the beginning of 2024, Fidelity International decided to strengthen its sustainability commitments based on four systemic themes. The manager announced that he will focus his sustainable investing (SRI) on four specific themes where there are opportunities to contribute to and maintain the health of the world's economic and social systems, in line with the company's strategy of delivering a better financial future. In the long term for its customers.
As sincerity explained, These four systematic themes of devotion are: loss of nature; Climate change; Strong and effective governance and social inequality. Some topics that will help guide the company's commitment to active dialogue to instigate positive changes.
This approach to sustainability builds on the progress Fidelity has made over the years, such as “integrating ESG factors into its investment portfolios, developing a robust ESG systematic framework, and actively contributing to key regulatory frameworks on a global level.” National and international level.”
in this meaning, Jin Hui Tan, Global Head of Sustainability at Fidelity International, It indicates that the manager is committed to sustainable investing for a long time and that his goal is to continue strengthening his approach as the sustainability landscape evolves.
“In line with our goal to address sustainability challenges and continue to deliver strong financial results for our clients, we have focused on the issues of nature loss, climate change, governance and social inequality, as well as These represent the most significant systemic risks to our economic and social systems.. Failure to address these issues or addressing them individually in isolation will prevent us from achieving a collective transformation to a sustainable economy, which will hurt investment portfolios. In 2024, Fidelity will strive to amplify its active ownership approach As a positive force for promoting sustainable practices in the companies in which we invest. In parallel, we will continue to actively contribute to the development of key regulations, such as the SFDR, and the transfer of standards coming into force this year, such as the CSRD, which we believe will be essential to encourage and harmonize sustainable investment. “All over the sector,” he explains.
The four pillars
In relation to these four pillars or systemic themes, the manager delves into their meaning and commitment. In case Loss of natureNotes that, as a signatory and founding member of the Biodiversity Finance Pledge, It is committed to protecting and restoring nature through its financing activities and investments. Consistent with its fiduciary duty, Fidelity intends to act when it sees opportunities to mitigate natural capital decline and contribute positively to the health and conservation of critical systems.
In 2023, Fidelity strengthened its commitment to the environment by publishing its Roadmap for Nature, listing the natural environment and deforestation as company priorities, as well as incorporating biodiversity criteria into its environmental, social and governance (ESG) frameworks. The innovative bioacoustics project focuses on developing a measuring instrument with advanced technologies. In 2024, Fidelity will continue to address these issues, primarily through dialogue activities, and in particular will vote against settlement proposals from companies in high-risk sectors that do not meet minimum standards of practices and disclosures related to deforestation.
to me Climate changeIn line with its goal of reaching net zero in its investment portfolios by 2050, the manager continues to strengthen its focus on climate change. As more companies issue credible transition plans, Fidelity will drive more innovations in transition financing, such as innovations in sustainable debt instruments. It will also look for dialogue opportunities with regulators that encourage governments to address policy gaps to make green technologies cheaper, while regulators work to direct transition financing to the right places.
About the Social inequality“Collective decarbonisation efforts continue to accelerate, but one unintended consequence could be increased social inequality,” he notes. “If these are allowed to continue, they will likely hamper climate action and could negatively impact the prospects of companies and, more generally, investors’ portfolios.”
Therefore, looking to 2024, Fidelity intends to continue its efforts to achieve this Contribute to decarbonizing the economy At the same time, supporting social transformations in populations that need them most through active monitoring, especially in our dialogue program on thermal coal.
Finally a topic Strong and effective governanceIt will be addressed at the multilateral, national, sectoral and business levels. The Director believes that this approach is necessary to take effective measures regarding sustainability. “Active dialogue and voting are two interconnected areas, and general meetings are a crucial moment for companies where voting can have important implications,” he points out.
for this reason, Al-Ikhlas will intensify its dialogue and express its position through voting and shareholder resolutions, will continue to focus on issues such as board effectiveness, company culture and conduct, compensation, shareholder rights, and transparency.
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