OverviewTechnical matters
Technical matters
Tax planning opportunities for 2024/25 Replacement of the lifetime allowance Retirement Income Pension Forum The Platform Clinic Pension, retirement and tax planning Pensions tax relief and annual allowances The beneficiaries flexi-access drawdown conundrum Retirement and pensions training Personal tax and trust planning training
More support
Paraplanner technical hub
Paraplanner technical hub
Technical hub Retirement income Regulation, due diligence and compliance Training support
The sustainable investing guide for advisers
All you need to know about ESG investing and meeting client needs
What does sustainable investing mean for advisers?
As with other types of investing, stocks for a sustainably-managed fund are invariably selected because they are perceived to represent excellent investment opportunities. This may be because of, for instance, their growth potential or a compelling valuation. However, in addition to these factors, a sustainable fund manager will also typically consider how a company rates against certain Environmental, Social and Governance (ESG) standards before making an investment:
Environmental issues
How a company is addressing issues such as climate change, resource depletion, waste, pollution and deforestation.
Social issues
A company’s policies and record in relation to human rights, modern slavery, child labour, working conditions and employee relations.
Governance issues
A company’s record in relation to bribery and corruption, executive pay, board diversity and structure, political lobbying/donations and tax strategy.
Sustainability labels
The Financial Conduct Authority (FCA) introduced four sustainability labels to help investors recognise funds with a specific environmental and/or social goal.
Fund providers can choose to use any of these labels if their funds meet the criteria, but they don't have to. If they use the labels they need to provide clear and simple information on what the fund’s goal is, the approach to achieving it and annual updates on progress towards it.
Sustainability FocusTM
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
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
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
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).
Our Investment Finder helps you to identify the investment options available on the platform that may be appropriate for your clients. It enables you to sort, filter, and compare investments using a wide range of criteria, including the investment labels.
Sustainable investing glossary
Our glossary defines some of the more frequently-used terms in this field of investment.
Sustainable investing and the advice process
Clients increasingly want to match their money with their morals. Taking account of their ESG preferences within the fact-finding process is therefore good practice.
New to Fidelity Adviser Solutions?
Find out what we offer to help you build profitable and sustainable financial businesses.
Important Information - Please note that the value of investments and the income from them can go down as well as up so your client may get back less than they invest.