Fidelity International Institutes Environment and Equality Policies: Investee Companies Ignore them At Their Peril

Fresh news from Fidelity International illustrates the company’s increasing will in seeing through #ESG intentions: the firm has introduced a number of new policies on #climate change and gender #diversity.

The company has also cited that beginning next year, it will vote against management at shareholder meetings if companies in which the firm invests don’t take sufficient action in combatting #climatechange.

Fidelity International's Global Head of Stewardship and Sustainable Investing Jenn-Hui Tan reflects the strong and admirable position taken “Our message to investee companies is clear: the climate crisis must not and cannot be ignored.”

Fidelity also said it plans to press for greater #gender diversity on Boards. While not yet taking quite as strong a position on this dimension as it is around climate, the firm has nonetheless said it will “actively engage” with portfolio companies and “consider voting against management” in developed countries where there isn’t at least 30% female representation on Boards. In less-developed markets, the (initial) target expected is 15%.

Abraham Lincoln once said “Commitment is what transforms a promise into a reality.”
- Fidelity expects commitment from its investee companies' #business #leadership. 
- As with other asset managers active in Net Zero Asset Managers initiative, Fidelity’s leaders are no longer accepting excuses. 
- Laggards will be penalised. 

The message to investee companies from Fidelity and others is, indeed, clear: pay heed and drive #sustainable development or flout the warning, doing so at your peril.