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Fidelity launches 'non-financial reports' providing ESG data on funds

Jovi Ho
Jovi Ho9/26/2022 07:43 PM GMT+08  • 3 min read
Fidelity launches 'non-financial reports' providing ESG data on funds
Fidelity says these reports can be used to gather in-depth information on a fund’s sustainability characteristics. Photo: Shutterstock
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Asset manager Fidelity International has launched “non-financial reports” for professional investors in Singapore, covering funds’ sustainability characteristics.

The reports are a result of Fidelity’s partnership with Copenhagen-based fintech company Matter. The two companies met through one of the Investment Management Association of Singapore’s digital acceleration programmes.

To present environmental, social and corporate governance (ESG) data, Fidelity uses Matter’s impact reporting API, which imports Matter’s environmental and social metrics, reads a Sept 26 press release.

The content in a report include a fund’s exposure to ESG-rated firms, its weighted average carbon intensity (WACI), board-level gender diversity and human rights controversies. The fund’s scores in these various areas are compared against those of the wider index.

In addition to the financial aspects covered in factsheets, Fidelity says these reports can be used in parallel to gather in-depth information on a fund’s sustainability characteristics, including the resilience of a fund’s aggregate holdings to long term ESG risks; an assessment of potential controversies related to a firm’s impact; and diversity of the board.

Outside of Singapore, reports on select funds are also available to professional investors in the UK, Europe and Hong Kong.

See also: Trade goes on with emerging products like biofuels

54% think sustainable investing is ‘difficult’

Fidelity says a majority (71%) of investors in Singapore think it important to act responsibly or sustainably as investors. However, 54% of respondents think it is difficult to know how best to do so, according to the Fidelity Sustainable Investing Survey 2022.

Investors in Singapore are becoming increasingly receptive towards sustainable investing, says Fidelity, with 62% of respondents stating they are interested in having their money make a positive change.

See also: How Singapore's gas infrastructure could accelerate a low-carbon future

“We continue to see increasing benefits in leveraging appropriate technology when it comes to investing overall, but also in the areas of educating and engaging with clients,” says Jenn-Hui Tan, global head of stewardship and sustainable investing at Fidelity International.

Tan adds: “As sustainable investing becomes more mainstream, it is important to continue to educate investors as well as show clients the effectiveness of their portfolio for ESG, which is what these non-financial reports aim to do. As a global asset manager, Fidelity is committed to drive positive change in the community and help investors better understand sustainable investing to make more informed decisions.”

By 2030, Fidelity aims to halve the carbon footprint of its investment portfolios and achieve net-zero emissions across its own corporate operations. By 2050, Fidelity plans to reach net zero across all investment portfolios

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