Fidelity International unveils new sustainable investing framework

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🗞️ Driving the news: Fidelity International has launched a revised sustainable investing framework, introducing a 3-tier system for classifying funds by their level of ESG integration
• This update aligns with new regulatory requirements in the EU and UK aimed at enhancing transparency and preventing greenwashing

🔭 The context: The framework responds to regulations like the EU’s Sustainable Finance Disclosure Regulation (SFDR), ESMA’s guidelines on ESG fund names, and the UK’s Sustainability Disclosure Requirements (SDR)
• These rules mandate clearer disclosure of sustainability risks and adherence to minimum ESG investment thresholds

🌍 Why it matters for the planet: By ensuring compliance with stringent ESG regulations, Fidelity’s framework promotes greater transparency and accountability in sustainable investing, potentially leading to more impactful and credible ESG investments

⏭️ What's next: Fidelity will categorize funds into three types: "ESG Unconstrained," "ESG Tilt," and "ESG Target," each reflecting different levels of ESG commitment and exclusions
• This structured approach aims to meet diverse client needs and evolving regulatory standards

💬 One quote: “Our revised framework aims to facilitate the creation and maintenance of a consistent, transparent, and practical range of investment capabilities that meet evolving client and regulatory needs,” said Jenn-Hui Tan, Chief Sustainability Officer at Fidelity International

📈 One stat: ESMA’s new guidelines require that at least 80% of investments in funds labeled as "sustainable" must meet specified ESG characteristics

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