Fidelity International has enhanced its global research capabilities with the launch of its proprietary sustainability ratings.
Comprising of Fidelity's equities and fixed income coverage universe of over 3,000 issuers, the sustainable ratings will leverage Fidelity's extensive research capabilities and ongoing engagement with management teams to provide a forward-looking evaluation of a company's focus and trajectory on ESG-related issues.
The ratings framework divides this investment universe into 99 subsectors, each with industry-specific criteria against which the issuer is assessed relative to its peers, using an A to E rating.
Marty Dropkin, global head of Research, Fixed Income, Fidelity International commented: "Evaluating how effectively a company serves its stakeholders in the broadest sense is integral to our investment process. Building this proprietary sustainability ratings tool was a natural next step that matches our bottom-up fundamental research process and draws on our deep corporate access."
Fidelity's proprietary sustainability ratings will draw upon the assessments of more than 180 equities and fixed income analysts who take part in more than 16,000 company meetings a year. The ratings will be updated annually or following a change of policy or an exceptional event at the company.
The proprietary ratings have been fully integrated into Fidelity's investment process and will be available to all of Fidelity's investment teams as an additional source of insight and to support investment decisions across Fidelity's client portfolios.