Global asset manager Fidelity International has confirmed plans for three of its funds to adopt the Sustainability Focus label under the UK’s Sustainability Disclosure Requirements (SDR). Finalised in November last year, the Financial Conduct Authority’s SDR naming and marketing rules for green funds mean UK-domiciled products that use terms such as ‘sustainable’ and ‘impact’ in their names must comply with the terms and conditions of one of four SDR labels – ‘focus’, ‘improvers’, ‘impact’ and ‘mixed goals’. The three Fidelity funds – Fidelity Sustainable UK Equity Fund, Fidelity Sustainable Global Equity Fund and Fidelity Sustainable European Equity Fund – have a combined AUM of more than £865 million (US$1.1 billion). The funds aim to increase the value of investments over a period of five years, with 70% or more of the gross assets invested in companies which contribute to environmental and/or social outcomes. The Sustainability Focus label is primarily for products investing in assets that are sustainable for people and/or the planet, requiring at least 70% of assets meet a credible standard of environmental and/or social sustainability, or align with a specified environmental and/or social sustainability theme. If approved, Fidelity would become the first firm with three SDR labelled funds. Last week, two EdenTree Investment Management funds received a Sustainability Impact label, while earlier this month a Ninety One fund was granted use of the same label. “We welcome the introduction of SDR and see it as an important stage in the development of sustainable investing in the UK, giving investors greater confidence to allocate to sustainable funds,” said Jenn-Hui Tan, Chief Sustainability Officer at Fidelity. “We believe the Sustainability Focus label aligns well with the established investment approach of these funds and builds on our approach to managing Sustainable Finance Disclosure Regulation Article 9 funds for European investors.”
