Fidelity International pledged Monday to halve carbon emissions in its master trust default fund by 2030.
The firm also plans to cut all of the carbon footprint of its multiemployer defined contribution Fidelity Master Trust, London's default strategy by 2050. The default fund is known as FutureWise.
To achieve the new targets, the firm will divest some of its assets. "We prefer engagement over exclusion, however some exclusions will be applied both at a strategy and fund level," a spokeswoman confirmed.
Keith Metters, head of global workplace investing at Fidelity International said in a news release: "Our pledge to reduce carbon emissions within FutureWise is one of several commitments we have made towards a more sustainable future — in both how we operate as a company, as well as in the products and services we offer our clients and their members."
Over 60% of Fidelity's workplace plan participants expect the default fund to automatically incorporate sustainability factors into the default strategy, Mr. Metters said.
The firm's spokeswoman added that Fidelity International will in the future consider investments in funds that invest in "ingenious climate solutions" that mitigate carbon emissions.
Fidelity will also aim to improve the carbon footprint of its offices and limit staff's business travel.
Fidelity Master Trust had £2.9 billion ($3.6 billion) in assets as of June 30.
Also Monday, U.K. investment consultant Redington said it intends to cut the carbon emissions of clients' default strategies by half by 2030.
Redington will also issue investment advice and set strategic asset allocations to help its clients move to net-zero portfolios by 2050, the consultant said in a news release.
"There is an ever-increasing focus on what we, as an industry, can do to create a sustainable future for all."
The firm, which has over £500 billion in assets under advisement and allocated across more than 150 money managers, recognizes "that we have a responsibility to use our influence as a force for good, creating positive change within the savings and investment industry," Mitesh Sheth, CEO, said in the release.
