Sustainable investing with Fidelity
For customers focused on sustainability, Fidelity provides a diverse set of funds backed by decades of research and investment expertise. Our active broad-based sustainable investing strategies consider financially material environmental, social, and governance factors as part of the investment process*, while our sustainable thematic offering provides access to sustainability-linked investment trends:
- Environmental themes, such as investing in companies that are responding to consumer demand for sustainable practices
- Social themes, such as investing in companies that focus on more equitable relationships among their customers, employees, suppliers, and the communities they operate in
- Governance themes, such as investing in companies that exhibit accountable and transparent governance with diverse and independent boards
Sustainability-themed funds delivered greater exposure to environmental and social areas, including climate action, resource security, healthy ecosystems, human development, and basic needs, compared with peers, according to Morningstar research.1
According to Fidelity's Asset Allocation Research Team, decarbonization efforts may represent a technological transformation with parallels to the steam engine or IT boom. While some sectors may face initial costs, it could ultimately boost productivity and profits, benefiting the overall economy and market in the long run.2
Fidelity's thematic sustainable investing funds
Learn about our sustainable investing funds and the types of companies and markets they invest in.
Mutual funds
Fidelity® Healthy Future Fund (FAPHX)
Invests in companies working to improve life expectancy, enhance people's lives, and decrease negative environmental impacts.
Fidelity® Climate Action Fund (FCAEX)
Invests in companies that are working to remove, reduce, or mitigate the effects of climate change.
Fidelity® Water Sustainability Fund (FLOWX)
Invests in companies helping to deliver safe, reliable, and easily accessible water.
Fidelity® Environmental Bond Fund (FFEBX)
Invests in the debt of companies and projects that are recognizing, disclosing, and reducing environmental risk.
Fidelity® Women's Leadership Fund (FWOMX)
Invests in companies that prioritize and advance women’s leadership and development.
Fidelity® Environment & Alternative Energy Fund (FSLEX)
Focuses on alternative and renewable energy, energy efficiency, pollution control, water infrastructure, waste and recycling technologies, or other environmental support services.
ETFs
Fidelity® Clean Energy ETF (FRNW)
Invests in companies that distribute, produce or provide technology or equipment to support the production of energy from solar, wind, hydrogen, and other renewable resources.
Fidelity® Women's Leadership ETF† (FDWM)
An actively managed ETF that invests in companies that prioritize and advance women's leadership.
†These ETFs are different from traditional ETFs. Traditional ETFs tell the public what assets they hold each day. These ETFs will not. This may create additional risks for your investment. For example, you may have to pay more money to trade the shares of these ETFs. These ETFs will provide less information to traders, who tend to charge more for trades when they have less information; the price you pay to buy ETF shares on an exchange may not match the value of each ETF’s portfolio. The same is true when you sell shares. These price differences may be greater for these ETFs compared to other ETFs because they provide less information to traders; these additional risks may be even greater in bad or uncertain market conditions; each ETF will publish on Fidelity.com and i.Fidelity.com a "Tracking Basket" designed to help trading in shares of the ETF. While the Tracking Basket includes some of the ETF’s holdings, it is not the ETF’s actual portfolio. The differences between these ETFs and other ETFs may also have some advantages. By keeping certain information about the ETFs secret, they may face less risk that other traders can predict or copy their investment strategy. This may improve the ETFs’ performance. If other traders are able to copy or predict the ETF’s investment strategy, however, this may hurt the ETF’s performance. For additional information regarding the unique attributes and risks of these ETFs, see section below.
Thought leadership
Fidelity's Julia Pei Discusses Her Approach To Sustainable Investing | Robert Eccles
Julia Pei, portfolio manager of the Fidelity Environment and Alternative Energy Fund (FSLEX) and equity research analyst, was interviewed by sustainability thought leader, Robert Eccles, where she shared her approach on climate investment opportunities related to the green transition.
Next steps
Search for and compare all mutual funds available through Fidelity based on Morningstar Sustainable Attributes criteria.
Search for ETFs with strategies that may meet your sustainable investing goals, such as strong employee relations, efficient use of natural resources, or gender diversity.
Search for stocks based on MCSI ESG criteria, such as accounting and governance risk score, environmental score, social score, governance score, or overall ESG rating.
