Sustainable and ESG investing
An introduction to finding funds with sustainability labels
Important information - please keep in mind that the value of investments can go down as well as up, so you may get back less than you invest. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity's advisers or an authorised financial adviser of your choice.
Sustainable investing
More of us are taking sustainability and environmental, social and governance (ESG) factors into consideration when deciding where to invest money - at Fidelity we broadly refer to this as sustainable investing. Not only is that good news for the planet and cities we live in, it's also helping many investors to find new opportunities.
You can search for funds that target specific sustainability outcomes by selecting the sustainability labels filter on our Investment Finder. The Financial Conduct Authority (FCA) introduced four sustainability labels to help investors recognise funds with a specific environmental and/or social goal.
Fund managers can choose to use any of the labels if their funds meet the general and label-specific criteria - please check back as more fund managers are expected to adopt the labels over time.
What are the sustainability labels?
The FCA introduced the labels as part of a range of measures to provide clearer information and protect investors who are looking to invest in sustainable funds.
Each of the four labels indicate the specific environmental and/or social goal of the fund.
If a fund meets the general and label-specific criteria a fund manager can choose to use it. They need to provide clear and simple information on the fund’s goal, how they'll achieve it and annual updates on its progress.
Sustainability FocusTM label
These funds invest mainly in assets that focus on sustainability for people or the planet. Examples may include activities to support the production of energy, for example, from solar, wind or hydrogen.
Sustainability ImproversTM label
These funds invest mainly in assets that may not be sustainable now, but aim to improve their sustainability. Examples may include investments in companies that are on a credible path to net zero by 2050, or are committed to improving social standards such as human rights.
Sustainability ImpactTM label
These funds invest mainly in solutions to sustainability problems with an aim to achieve a positive impact for people or the planet. Examples may include renewable energy generation and social housing.
Sustainability Mixed GoalsTM label
These funds invest mainly in a mix of assets that either focus on sustainability, aim to improve their sustainability over time, or aim to achieve a positive impact for people or the planet. Examples may include a mixture of investments from the labels above (Focus, Improvers and Impact).
Understanding sustainable and ESG investing
The world of sustainable investing is littered with jargon, which can be confusing. We've pulled together some of the most common terms and commonly asked questions in one place, to help make it easier to understand.
View sustainable and ESG investing terms