Thematic investing: Sustainable

Fidelity believes that robust sustainability practices can be critical to an investment’s long-term success. Sustainable investing at Fidelity enables you to align your investments to outcomes shaped by environmental, social, or governance (ESG) factors.

Sustainable investing with Fidelity

Where appropriate and aligned with a fund’s investment objectives, we apply an ESG perspective directly to the products we offer our clients. More broadly, we have incorporated one or all of these ESG factors into our fundamental research—across all asset classes and investment disciplines*:

  • Environmental themes, such as investing in companies that are responding to consumer demand for sustainable practices
  • Social themes, such as investing in companies committed to a diverse and inclusive workplace
  • Governance themes, such as investing in companies committed to diverse board composition, strong oversight, and shareholder friendly policies

Two-thirds of retail customers say social impact is key to their investing decisions1, according to Fidelity research.

181 CEOs from some of America’s largest companies have committed to lead their companies for the benefit of ALL stakeholders – customers, employees, suppliers, communities and shareholders.2

Fidelity's sustainable investing funds

Learn about our sustainable investing funds and the types of companies and markets they invest in.

Sustainable Thematic
Focuses on long-term themes broadly tied to specific areas of sustainability

Fidelity® Climate Action Fund (FCAEX) NEW

Invests in companies that are removing, reducing, or mitigating the effects of climate change.

Fidelity® Environmental Bond Fund (FFEBX) NEW

Invests in the debt of companies and projects that are recognizing, disclosing, and reducing environmental risk.

Fidelity® Water Sustainability Fund (FLOWX)

Invests in companies helping to deliver safe, reliable, and easily accessible water.

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.

Sustainable Integration
Incorporates ESG factors explicitly into investment decisions to help better identify risks and opportunities

Fidelity® Sustainability U.S. Equity Fund (FSEBX) NEW

Provides exposure to current and future sustainable leaders through evaluating a company's ESG profile.

Fidelity® U.S. Sustainability Index Fund (FITLX)

Tracks a benchmark that targets companies with high ESG ratings, while maintaining broad market exposure.

Fidelity® International Sustainability Index Fund (FNIDX)

Tracks an international stock benchmark that targets companies with high ESG ratings, while maintaining broad market exposure.

Fidelity® Sustainability Bond Index Fund (FNDSX)

Tracks a benchmark of investment-grade government, corporate, and asset-backed securities from issuers with strong sustainability profiles.

Active Equity ETF
Seek to combine the potential for outperformance* with the trading and tax efficiency benefits of an ETF

Fidelity® Sustainability U.S. Equity ETF (FSST) NEW

An actively managed ETF that provides exposure to the current and future sustainable leaders through evaluating a company’s ESG profile.

Fidelity® Women's Leadership ETF (FDWM) NEW

An actively managed ETF that invests in companies that prioritize and advance women's leadership.

*While active ETFs offer the potential to outperform an index, these products may more significantly trail an index as compared with passive ETFs

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 and 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

ESG ratings: Look closer
Ratings may help you sort through the ESG field. But they are not all the same.

Investing in women
Allows investors committed to gender diversity to align their investments with their values.

Investing with a purpose
Watch portfolio manager Nicole Connolly discuss ESG investing and the Women's Leadership fund.

To invest responsibly, we believe it’s critical to effectively incorporate ESG into our investment process. Our report shares Fidelity’s values, processes, and commitments to ESG to help manage our customers’ assets.

Next steps

Search for and compare all ESG mutual funds available through Fidelity.

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.

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