1. Climate Rating to identify investment potential and engagement

Fidelity’s Climate Rating complements our Sustainability Ratings. The Rating analyses companies in three core areas: net zero ambitions, climate governance and capital allocation to transition. Our portfolio managers and analysts use these ratings to assess how attractive a company will be in the long term, depending on how it’s exposed to climate-related risks. We also use these ratings to prioritise our engagement with companies and identify where we need to encourage change. 

Companies are placed into one of five buckets, depending on their score

Eligible for a net zero portfolio

Achieving or enabling net zero
Aligning to a net zero path

Continued investment & engagement/voting

High transition to net zero potential
Low transition to net zero potential

Assessment & engagement, with risk of divestment

No evidence of transition potential

Source: Fidelity International, October 2021


Read our climate policy