Sustainable investing, also known as responsible or ESG investing, is an approach to investing that incorporates environmental, social and governance (ESG) factors in the investment process.
ESG factors are important drivers of change in the world and often impact the environment in which companies operate, creating both risks and opportunities.
Environmental factors consider how a company performs as a steward of the natural environment.
Social factors consider how a company manages relationships with its employees, suppliers, customers, and the communities in which it operates.
Governance factors consider the quality and reasonableness of a company’s leadership, executive pay, audits and internal controls, and shareholder rights.
Source: Responsible Investment Association.
Sustainable investment strategies consider environmental, social and governance characteristics of companies in a way that allows investors to align their values and beliefs with their investment objectives.
Evaluating ESG issues provides a more holistic view of risks that companies face and can help reduce exposure to risks that may not be visible on a company’s financial statements.
Integrating ESG issues can also help uncover opportunities that would be difficult to identify through traditional financial analysis alone and thus has the potential to enhance long-term returns.
Fidelity Sustainable World ETF and Mutual Fund is a global multi-factor equity strategy that invests in companies with favourable environmental, social and governance characteristics, as defined by MSCI.
In an ever-changing and complex financial services world, we’re committed to developing quality products that provide long-term value.
Founded in 1946, Fidelity is one of the world’s largest providers of financial services. As a privately owned firm, we have been providing investment solutions and innovations to our clients in Canada for more than 30 years. We’re invested in proprietary research, bottom-up fundamental analysis, product innovation and our people. With investment professionals worldwide, Fidelity takes local market knowledge, identifies real opportunities and makes them available to you here at home.
Read a fund’s prospectus before investing. Mutual funds are not guaranteed; their values change frequently, and past performance may not be repeated. Investors will pay management fees and expenses, may pay commissions or trailing commissions and may experience a gain or loss.
Fidelity Sustainable World ETF and Mutual Fund use a quantitative model, which may not produce the intended results for a variety of reasons, including, but not limited to: errors or omissions in the data used by the model, the factors and/or assumptions used in the model, the weight placed on each factor and/or assumption in the model, changing sources of market return or market risk, market disruption, and technical issues in the design, development, implementation, and maintenance of the model.
MSCI is the provider of the MSCI All Country World ESG Leaders Index (the “Index”), which is based on the MSCI ESG Leaders Index methodology (the “Methodology”). The Index serves as the investment universe for Fidelity Sustainable World ETF. MSCI evaluates and determines an issuer’s eligibility for inclusion in the Index based on meeting certain ESG criteria, as defined by MSCI. The Index is constructed by applying a best-in-class selection process to companies in the regional indexes that make up the MSCI All Country World Index. For details regarding MSCI’s ESG screening process and the Index, please refer to the Methodology posted to the MSCI website. Neither MSCI nor any other party involved in or related to compiling, computing or creating the MSCI data makes any express or implied warranties or representations with respect to such data (or the results to be obtained by the use thereof), and all such parties hereby expressly disclaim all warranties of originality, accuracy, completeness, merchantability or fitness for a particular purpose with respect to any of such data. Without limiting any of the foregoing, in no event shall MSCI, any of its affiliates or any third party involved in or related to compiling, computing or creating the data have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages. No further distribution or dissemination of the MSCI data is permitted without MSCI's express written consent.
Used with permission of The Responsible Investment Association, May 10, 2019.