Fidelity International has announced its intention to adopt the Sustainability Mixed Goals label under the Sustainability Disclosure Requirements (SDR) regime for three funds in its UK-domiciled multi-asset range.

The Financial Conduct Authority (FCA) introduced four labels to help consumers navigate the sustainable investment product landscape, with the Sustainability Mixed Goals label applying to products that pursue a mix of sustainability objectives and approaches from at least two of the other label categories.

The three funds to adopt the label are the Fidelity Sustainable Multi Asset Balanced Fund, Fidelity Sustainable Multi Asset Conservative Fund, and Fidelity Sustainable Multi Asset Growth Fund.

Fidelity stated that 70 per cent or more of the funds’ assets will invest in funds and other assets that contribute to positive environmental and/or social outcomes (Sustainability Focus label), and funds that have the potential to contribute to positive environmental outcomes set out by the Paris Agreement’s climate targets by restricting carbon emissions exposures in line with EU Paris-aligned benchmark requirements (Sustainability Improvers label).

Standards that the funds will be monitored and reported against were established using Fidelity’s Sustainable Development Goal tool, the EU Taxonomy, use-of-proceeds bonds, and Paris-aligned benchmarks.

The label adoption follows Fidelity’s previous announcement that it would adopt the Sustainability Focus label for three of its UK-domiciled equity funds: Fidelity Sustainable UK Equity Fund, Fidelity Sustainable Global Equity Fund, and Fidelity Sustainable European Equity Fund.

“At Fidelity International we remain dedicated to supporting investors in finding innovative investment solutions, balancing both financial and sustainability requirements,” said Fidelity International chief sustainability officer, Jenn-Hui Tan.

“We believe the SDR framework plays a role in promoting transparency and consistency to our UK clients when it comes to sustainable investing, empowering investors to make informed decisions that align with their values.

“Our intention to adopt the Mixed Goals SDR labels builds on the momentum of our previous announcement to apply the Sustainability Focus label to three of our UK-domiciled equity funds.”

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