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Sustainable investing framework

Ratings methodology applicable to the definition of sustainable characteristics

Sustainable characteristics are defined as issuers rated by MSCI, or in the absence of a rating from MSCI, by the Fidelity Sustainability Rating, as follows: 
•    Developed market issuers with an ESG rating from MSCI of AAA - BBB
•    Non-developed market issuers with an ESG rating from MSCI of AAA - BB
•    Issuers with no ESG rating assigned by MSCI will be assessed by Fidelity Sustainability Ratings and are required to have an ESG rating of A - C
Global market classifications are as set out in MSCI’s annual market classification review.

Download our Sustainable Investing Policy as a PDF >

Criteria to determine which issuers demonstrate improving sustainable indicators

(applicable to the Fidelity Sustainable Family of Funds, with the exception of the Sustainable ETFs, only)

Issuers that are not assessed as having positive sustainable characteristics for the purposes of the primary objective (minimum 70% of net assets) are eligible for inclusion, with up to 30% of net assets (save for the Sustainable ETFs, which are exempted from this 30% limit), provided they are able to demonstrate that they are on an improving trajectory with respect to their sustainable characteristics. Improving sustainable indicators are issuers classified as such through the trajectory outlook of Fidelity Sustainability Ratings or issuers which in our view demonstrate the potential for improvement through the implementation and execution of a formal engagement plan. Engagement plans must include key objectives and milestones to validate the improvement being sought and must be recorded in Fidelity’s internal research platform. If the engagement has not resulted in an improvement in the sustainability characteristics of the issuer within a specified period of time, the security is subject to divestment in accordance with Fidelity’s exclusion divestment procedure.

Important information

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The information presented in this document is for information only. It is a general disclosure on the investment approach and should not be considered as (i) investment advice, (ii) an endorsement or recommendation in a financial product or service, (iii) an offer to sell or a solicitation of an offer to purchase any securities or other financial instruments. Unless otherwise stated all views expressed are those of Fidelity International.

Europe
Issued by: FIL Pensions Management (authorised and regulated by the Financial Conduct Authority in UK), FIL (Luxembourg) S.A. (authorised and supervised by the CSSF, Commission de Surveillance du Secteur Financier), FIL Investment Switzerland AG and at FIL Gestion, authorised and supervised by the AMF (Autorité des Marchés Financiers) N°GP03-004, 21 Avenue Kléber, 75016 Paris. For German Wholesale clients issued by FIL Investments Services GmbH, Kastanienhöhe 1, 61476 Kronberg im Taunus. 
For German Institutional clients issued by FIL (Luxembourg) S.A., 2a, rue Albert Borschette BP 2174 L-1021 Luxembourg, Zweigniederlassung Deutschland: FIL (Luxembourg) S.A. - Germany Branch, Kastanienhöhe 1, 61476 Kronberg im Taunus.
For German Pension clients issued by FIL Finance Services GmbH, Kastanienhöhe 1, 61476 Kronberg im Taunus.


Asia and Australia
In Hong Kong, this material is issued by FIL Investment Management (Hong Kong) Limited and it has not been reviewed by the Securities and Future Commission.
FIL Investment Management (Singapore) Limited (Co. Reg. No: 199006300E) is the legal representative of Fidelity International in Singapore.

FIL Asset Management (Korea) Limited is the legal representative of Fidelity International in Korea.

In Taiwan, independently operated by Fidelity Securities Investment Trust Co. (Taiwan) Limited 11F, No.68, Zhongxiao East Road, Section 5, Taipei 110, Taiwan, R.O.C. Customer Service Number: 0800-00-991. FIL Securities Investment Trust Co. (Taiwan) Limited is 100% owned subsidiary of FIL Limited in Taiwan.

In Australia, this material issued in Australia by Fidelity Responsible Entity (Australia) Limited ABN 33 148 059 009, AFSL No. 409340 (“Fidelity Australia”).

In China, Fidelity is authorised to manage or distribute private investment fund products on a private placement basis, or to provide investment management service to institutions in the mainland China solely through its Wholly Foreign Owned Enterprise in China - FIL Investment Management (Shanghai) Company Limited.

In Japan, all rights concerning this material except quotations are held by issuers, and should by no means be used or copied partially or wholly for any purpose without permission.
FIL Investments (Japan) Limited (“FIJ”) is registered by Director of Kanto Local Financial Bureau as Financial Instruments Firm #388. FIJ is the legal representative of Fidelity International in Japan.