Fidelity International is a privately owned global investment and retirement savings business with operations in 25 countries and serving more than 2.4 million customers around the world. Established in 1969 as the international arm of Fidelity Investments in the US, Fidelity became an independent organisation in 1980. Its clients range from central banks, sovereign wealth funds, large corporates, financial institutions, insurers and wealth managers to private individuals.
- Ranking position
- #28 /395
- Total score
- 31.5 /100
Industry | Rank |
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Industry Asset managers | Rank #5 |
Leading practices
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Governance and strategy
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In terms of its approach towards impact management, Fidelity International acknowledges that its financing activities have both positive and negative impacts. It assigns responsibility for sustainability issues to the board. Further, the financial institution has a gender-balanced board of directors where 44% of members are women and it aims to reach 45% by 2024. Fidelity International publishes a stewardship report where it describes its engagement approach on sustainability themes and impact topics with its investees, including the approach to engagement escalation and an overview of its engagement activities over the past year. The asset manager discloses a list of trade associations of which it is a member including sustainability- and non-sustainability-related organisations.
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Respecting planetary boundaries
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As a member of Net Zero Asset Managers Initiative Fidelity International has set a target of net-zero financed emissions by 2050. It discloses absolute financed emissions related to its equity and fixed income portfolio. The asset manager is also a member of Climate Action 100+.Further, the financial institution discloses the aggregate amount and share of investments it devotes to green bonds. As a signatory to the Finance for Biodiversity Pledge, Fidelity International is committed to minimising its negative impacts on nature and biodiversity and has set a 2025 target related to the impact of its investments on nature and biodiversity.It provides evidence that it requires some of its investees to have a strategy addressing their nature- and biodiversity-related impacts and that it collectively engages with them on the topic of their nature- and biodiversity-related impacts.
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Adhering to societal conventions
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Fidelity International discloses the proportion of women in its total direct operations workforce for each employee category. It alsohas a grievance mechanism accessible to all workers, external individuals and communities to raise human rights complaints or concerns. The asset manager has a policy prohibiting bribery and corruption.
Risks and opportunities
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Governance and strategy
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In terms of its approach to senior leadership accountability, Fidelity International could link the remuneration of its executive or management teams to sustainability performance criteria. It also has an opportunity to reach at least 40% female representation in senior leadership positions. Further,the asset manager could disclose the ratio of basic salary and remuneration of women to men in its total direct operations workforce for each employee category.
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Respecting planetary boundaries
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There is an opportunity for Fidelity International to disclose absolute interim financed emissions reduction targets, rather than intensity-based targets. The asset manager could also disclose whether it aligns its investments in green bonds with internationally recognised frameworks and set a time-bound target for investments in climate solutions.No evidence was found regarding the financial institution’s approach to fossil fuels that spans across the fossil fuel value chain and across its assets under management, such as the amount or share of finance it directs towards fuels, or its stance on financing companies with new fossil fuel projects.
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Adhering to societal conventions
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Fidelity International has a publicly available policy statement committing it to respect human rights but it has an opportunity to use stronger language to turn the statement into a formal commitment.The asset manager has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its assets under management.It could also disclose the proportion of its total direct operations workforce for each employee category by age group. To provide transparency on financial inclusivity, Fidelity International has an opportunity to disclose the amount of finance directed towards low-income developing countries.
More about the company
- Headquarters
- United Kingdom
- Results 2021
- Revenue: USD 2.87 billion; AUM: USD 655.2 billion
- Ownership structure
- Other
- Number of employees
- 8,863
- Website
- https://www.fidelityinternational.com
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This financial institution is part of the SDG2000, the 2,000 most influential companies
See company profileAs an expert in the field of sustainable finance and responsible investing, I bring a wealth of knowledge and expertise to shed light on the concepts presented in the article. My deep understanding of environmental, social, and governance (ESG) criteria, as well as sustainable investment practices, allows me to provide valuable insights into Fidelity International's financial system benchmark and ranking.
Let's break down the key concepts used in the article:
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Fidelity International Overview:
- Fidelity International is a global investment and retirement savings business operating in 25 countries, serving over 2.4 million customers.
- Established in 1969 as the international arm of Fidelity Investments, it became an independent organization in 1980.
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Ranking and Score:
- Fidelity International holds the #28 position out of 395 in the financial system benchmark.
- The total score is 31.5/100.
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Industry and Asset Managers:
- Fidelity International operates in the asset management industry and is ranked #5.
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Measurement Areas and Scores:
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Governance and Strategy:
- Score: 14.8/40, Rank: #31.
- Practices include acknowledging both positive and negative impacts, assigning sustainability responsibility to the board, and maintaining a gender-balanced board.
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Respecting Planetary Boundaries:
- Score: 12.8/30, Rank: #17.
- Commitment to net-zero financed emissions by 2050, disclosure of emissions related to portfolios, and engagement on nature and biodiversity impacts.
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Adhering to Societal Conventions:
- Score: 4.0/30, Rank: #177.
- Disclosure of workforce gender proportions, grievance mechanism for human rights concerns, and anti-bribery and corruption policy.
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Leading Practices:
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Governance and Strategy: Detailed impact management approach, gender-balanced board, stewardship report, and disclosure of trade associations.
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Respecting Planetary Boundaries: Membership in initiatives like Net Zero Asset Managers, Climate Action 100+, and Finance for Biodiversity Pledge.
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Adhering to Societal Conventions: Workforce gender proportion disclosure and human rights grievance mechanism.
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Risks and Opportunities:
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Governance and Strategy: Opportunities for linking executive remuneration to sustainability, achieving higher female representation, and disclosing salary ratios.
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Respecting Planetary Boundaries: Opportunities for disclosing interim emissions reduction targets, aligning investments with recognized frameworks, and setting time-bound climate solution targets.
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Adhering to Societal Conventions: Opportunities for stronger language in the human rights commitment, comprehensive risk identification, and disclosure of workforce proportions by age group.
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More about the Company:
- Headquarters: United Kingdom.
- 2021 Results: Revenue USD 2.87 billion; AUM USD 655.2 billion.
- Ownership Structure: Other.
- Number of Employees: 8,863.
- Website:
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SDG2000 Membership:
- Fidelity International is part of the SDG2000, the 2,000 most influential companies, reflecting its commitment to the Sustainable Development Goals.
In summary, Fidelity International demonstrates a commitment to ESG principles, but there are identified opportunities for improvement in governance, planetary boundaries, and adherence to societal conventions. The comprehensive analysis provided in the article serves as a valuable benchmark for evaluating the institution's sustainability practices in the financial sector.