Corporate Sustainability Report 2021
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Corporate Sustainability Report 2021 Living our company purpose Children running with kite. (Photo by ESB Professional / Shutterstock). This material is for Investment Professionals only, and NOT for distribution to general public or to be relied upon by private investors. OVERVIEW 2024 GOALS ENVIRONMENT WORKPLACE SUPPLY CHAIN COMMUNITY GOVERNANCE Foreword 2020 showed us that “business as usual” is a thing of Similarly, we have accelerated our plans this We are also continuing to study how to calculate the the past. But changing established business practices year to cut operational carbon emissions to zero, environmental impact of our investment portfolios, to encourage more sustainable economic growth is a advancing our deadline by a decade to 2030 the Scope 3 emissions among our suppliers and the complex, global challenge that requires a substantial from 2040 previously. This decision reflects both a energy used when working at home. shift in mindset and behaviours - from customers, better understanding of our global footprint through The transition to a net-zero economy poses many employees, suppliers, corporate partners and improved data collection, and lasting changes in questions which we and others are working hard to regulators who set the rules for commerce. working practices brought about by the COVID-19 answer. We hope that our first corporate sustainability pandemic. As stewards of our clients’ assets, the asset report will show how better data collection and an management industry in particular has a weighty Our aim is to have real-world impact, which is why improved understanding of our impact will help us to responsibility to ensure its capital allocation decisions we have a net-zero plan to deliver verifiable and do our part for our customers, the environment and reflect this transition to a more sustainable future. We additive emission reductions rather than relying on the society in which we all live. cannot do it alone, but in collaboration with others, carbon offsetting. By being more transparent about the similarities we can make a real difference. To achieve this, we will have to be led by the data between the sustainability approach we take to At Fidelity International, we are lucky to be able that shows the quickest and most efficient path to our investment processes and the way we run our to draw on the expertise in our investment teams, net zero. Around 90 per cent of the greenhouse gas business, we also hope to inspire others to contribute who have developed precise tools for assessing the emissions in our operations come from a combination in a similar way. The post-pandemic recovery is full of sustainability profiles of the companies in which we of office energy usage and travel, so we’re exploring uncertainties, but ultimately, it will be shaped by our invest. Over the years, this ability also has helped options including more energy-efficient buildings, as collective decisions and grounded in our core values. us to put our own house in order, by applying the well as using green energy to power them. We also same environmental, social and governance (ESG) want to reduce business travel, which will require Anne Richards standards to our operations. We have taken the same ”As stewards of our clients’ assets, substantial investments in technology such as virtual CEO, Fidelity International investment lens used to evaluate the companies collaboration tools to enable us to continue delivering in which we invest and applied it to our internal the asset management industry results that our clients expect. operations, scaling up our ambitions. in particular has a weighty We reached our 30 per cent target for female responsibility to ensure its representation in senior management roles one year capital allocation decisions ahead of schedule and have set a more ambitious goal of 35 per cent by 2024. reflect this transition to a more sustainable future.” 2 Corporate Sustainability Report 2021: Living our company purpose Fidelity International 3 Contents OVERVIEW BUYING RESPONSIBLY FROM OUR SUPPLIERS Who we are 8 Sustainability enhances supply chain agility 44 ESG guides our company purpose 10 Zero tolerance: Fighting modern slavery 47 Towards a more sustainable model of capitalism 12 CREATING RESILIENT COMMUNITIES 2024 GOALS Compassion: At the heart of Workplace Giving 50 Summary 16 Global corporate citizenship 54 How corporate responsibilities shape our ESG investment themes 18 ETHICS, VALUES AND CORPORATE GOVERNANCE Strong foundation: The role of corporate governance 60 IMPROVING OUR ENVIRONMENT Corporate sustainability: The next phase 64 Companies hold the key to climate resilience 24 Building a future of shared success through Advancing our operational net-zero goal by a decade 28 shared responsibilities 66 Sustainable governance in practice 67 STRENGTHENING THE WORKPLACE The business case for diversity 34 APPENDICES Lessons from the pandemic will strengthen Performance data tables 70 our workforce 38 Sources 72 Light bulb illuminated by the sunset. (Photo by Artur Debat / Getty Images). 4 Corporate Sustainability Report 2021: Living our company purpose Fidelity International 5 OVERVIEW 2024 GOALS ENVIRONMENT WORKPLACE SUPPLY CHAIN COMMUNITY GOVERNANCE Overview Who we are 8 ESG guides our company purpose 10 Towards a more sustainable model of capitalism 12 Top view of a young green forest in spring. (Photo by artjazz / Adobe Stock). 6 Corporate Sustainability Report 2021: Living our company purpose Fidelity International 7 OVERVIEW 2024 GOALS ENVIRONMENT WORKPLACE SUPPLY CHAIN COMMUNITY GOVERNANCE 26 Who we are locations Fidelity International offers investment solutions and services and retirement expertise globally. As a purpose-driven, privately-held company with a 50-year heritage, we think generationally and invest for the long term. We offer our own investment solutions and access to those of others, and deliver services relating to investing. For individual investors and their advisers, we provide guidance to help them invest in a simple and cost-effective way. For institutions, including pension funds, banks and insurance companies, we offer tailored investment solutions, consultancy, and full-service outsourcing of asset management to us. For employers, we provide workplace pension administration services on top of, or independently from, investment management. US$706.3 Americas Europe, Middle East and Africa (EMEA) Asia-Pacific (APAC) 2.52 74 400+ A+ Bermuda Austria Luxembourg Australia billion* 8863 Brazil Belgium Netherlands China nationalities investment assets under million employees rating Chile Denmark Poland India management and clients worldwide in our workforce professionals by PRI Finland Spain Japan administration France Sweden Republic of Korea Note: All data as of December 31, 2020. Note: *Includes Canada, which is not covered in the goals and commitments made in the 2021 Corporate Sustainability Report and is therefore out of scope for this report. Germany Switzerland Singapore Ireland UK Taiwan Italy United Arab Emirates Our corporate sustainability journey Establish ESG Oversight Group. Introduce FIL Proprietary ESG ratings. Develop firm exclusion policy. Synthesise strategies within Sustainable Fund Family. Join ClimateAction 100+. Adopt UK Introduce New Horizon Returners Renewable energy contracts reached for all UK sites. Stewardship Code. Rated ‘A’ in first programme. Initiate global environmental sustainability policy and Establish UK PRI signatory. PRI assessment. UN LGBTI Standards of Conduct in management system. energy monitoring Start five-year Long Third-party research Business signatory. and improvement Term Incentive Plan integrated into global Begin offering two paid volunteering Establish Global Diversity and Inclusion Leadership Council. programme. (LTIP) campaign. research platform. days per year to employees. Launch Supplier Code of Conduct. 2003 2010 2011 2012 2013 2015 2016 2017 2018 2019 2020 Establish Corporate Sustainability Committee. Five-year plans endorsed as Launch five new thematic Set operational net-zero goal by 2040 (which was moved forward to 2030 in 2021). Subscribe to Establish best practice in UK Corporate engagement campaigns. Implement sustainability performance indicators for global operations. third-party ESG policy. Governance Code. Install solar panels in Bermuda. ESG data. Publish inaugural TCFD report. Establish UK environmental policy. Launch This is Me campaign Launch digital engagement platform. Launch to encourage mental health Principles of Luxembourg office awarded Green Enhance ESG client reporting. discussions. Ownership. Eco Certificate. Install solar panels in the UK. Introduce Mental Health First HM Treasury Women in Finance Join Valuable 500, an initiative to promote disability inclusion. signatory. Aiders programme. Become Race at Work Charter signatory. Launch Fidelity 4 Everyone (F4E) Publish Cultural Diversity Action Plan. to promote diversity & inclusion among Introduce equal parental leave for fathers and secondary carers. employee networks and support groups. Launch Enable Network to connect employees in disability inclusion. Introduce corporate citizenship committees worldwide and increase Sign up to EcoVadis, a digital sustainability rating provider. amount available for grant matching. Join Minority Supplier Development UK (MSDUK). Founding signatory to Net Zero Asset Managers initiative. Source: Fidelity International, 2021. 8 Corporate Sustainability Report