Fidelity International Launches Fund Targeting Opportunities from Multi-Decade Global Decarbonization
Fidelity International announced today the launch of Fidelity Funds — Sustainable Climate Solutions Fund, a new fund aiming to achieve long-term capital growth by investing in companies which enable global decarbonisation efforts.
According to Fidelity, the new fund will target the major opportunities presented by the multi-decade global economic transformation to reach net zero targets over the next 30 years after 150 years of rising greenhouse gas emissions. The fund will be managed by Velislava Dimitrova and Cornelia Furse.
Velislava Dimitrova, Lead-Portfolio Manager, Fidelity International, said:
“Climate change has prompted decarbonisation policies around the world to help achieve global carbon neutrality. The world needs to decarbonise urgently, at a faster pace that we have seen to date, and investors can play a major role in supporting this change.
“The decarbonisation challenge is on a scale unmatched in human history. But it is one that offers the companies meeting it a 30-year period of growth that surpasses even the internet revolution. Our Sustainable Climate Solutions Fund offers investors access to this long-term global megatrend.”
The Fidelity Funds — Sustainable Climate Solutions Fund will invest in companies that offer technologies and solutions enabling material emissions reductions relative to current technologies, in areas including electric vehicles, green hydrogen, autonomous vehicles, renewable energy, smart grids, industrial automation and agricultural efficiency, among others.
Cornelia Furse, Co-Portfolio Manager, Fidelity International, said:
“Unlike other climate funds, we focus on carbon reduction, not carbon avoidance. Investing in low emission sectors will not be enough to reverse 150 years of rising greenhouse gas emissions. Our fund will identify and invest in existing and emerging solutions that help decarbonise society.
“The decarbonisation trend is currently at the early stage of penetration and will be driven by a combination of innovation, improving economics, accelerated governmental support and changing consumer behaviours. It is the stocks exposed to these themes that will drive superior investment opportunities for our investors.”
The launch follows Fidelity International’s recent announcement that it has significantly accelerated its own emissions reduction goals, aiming to reach net zero in its own operations by 2030, ten years ahead of its original target, and committed to a 50% reduction in air travel carbon emissions by 2024.
Christian Staub, Managing Director Europe, Fidelity International, added:
“The race to net zero is on. At Fidelity, we have also committed to reduce our operational carbon emissions to net zero by 2030, and we’re working collaboratively with peers in the Net Zero Asset Managers initiative, supporting the transition towards global net zero emissions.”
The new fund will form part of the firm’s Sustainable Family Fund range, and is classified Article 8 under the EU Sustainable Finance Disclosure Regulation (SFDR).