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.
What makes a sustainable fund?
The issue for advisers is that fund managers have contrasting views on what constitutes a sustainable investment. They may also have differing policies – one manager may exclude all stocks from certain ‘sin’ sectors, such as alcohol or tobacco, while another is happy to include some based on their ESG credentials. For a client who has strong ethical, moral or religious views, a fund’s approach and policies will be crucial when assessing suitability.
In our Adviser Guide to Sustainable Investing, we examine the various types of funds and approaches, such as:
- Sustainability select
- Environmentally focused
- Socially focused
- Ethically focused
- ESG weighted
- Limited exclusions
- Faith based
Please note, these definitions do not correspond to the sustainable investment labels introduced by the Financial Conduct Authority (FCA).
We also look at a number of principles and standards that act as a common reference point for fund managers who invest responsibly.
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.
Sustainable Investment Finder
Our tool is designed to make the process of selecting funds with a sustainable focus easier. Take a look at how it could help to identify potential fund solutions.
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.