Fidelity International has confirmed plans to adopt the ‘Sustainability Focus’ Sustainability Disclosure Requirements (SDR) label for three funds within its UK-domiciled equity fund range.

The three funds - Fidelity Sustainable UK Equity Fund, Fidelity Sustainable Global Equity Fund, and Fidelity Sustainable European Equity Fund – seek to increase the value of investments over a five-year period, whereby 70 per cent or more of the gross assets will invest in companies that contribute to environmental and/or social outcomes.

Fidelity’s proprietary Sustainable Development Goal (SDG) tool and the EU Taxonomy were used to establish a ‘robust standard’ that the funds will be monitored and reported against, under the requirements of SDR.

In July 2024, the Financial Conduct Authority (FCA) introduced four labels to help consumers in the UK to navigate the investment product landscape and improve trust.

Products with the ‘Sustainability Focus’ label seek to invest in assets that are environmentally and/or socially sustainable.

Fidelity said the labels complement its overarching Sustainable Investing Framework, which aims to offer clients enhanced clarity and transparency on Fidelity’s global approach to sustainable investing, while also aligning with local ESG regulations and client requirements.

The firm noted that it is also reviewing opportunities for adopting other SDR labels within its fund range.

“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 Fidelity International chief sustainability officer, Jenn-Hui Tan.

“We believe the ‘Sustainability Focus’ label aligns well with the established investment approach of these funds and builds on our approach to managing SFDR Article 9 funds for European investors.

“We look forward to continue working with clients to meet their sustainable investing needs.”

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