Fidelity International has launched a fixed income strategy seeking to provide exposure to companies actively reducing carbon emissions.
The Luxembourg-domiciled fund aims to build a global corporate bond portfolio limiting exposure to companies with the highest carbon emissions intensity and largest carbon reserves.
Through an active engagement approach, the portfolio managers intend to identify businesses transitioning towards a “greener environment”.
Lead portfolio manager Kris Atkinson said: “To tackle the threat of climate change as investors we need to embrace companies transitioning to greener business models, not exclude them.”
“By actively engaging with companies we can reduce emissions, influence their decarbonisation strategies and move to a more sustainable future.”
The Fidelity Funds – Sustainable Reduced Carbon Bond Fund forms part of the US firm’s sustainability range which includes five products; two sustainable thematic funds focusing on carbon reduction and water and waste, as well as three best-in-class equity and fixed income funds.
The fund house – which manages over £250 billion of assets – said that climate change represents a “huge threat” but also an opportunity for investors and companies.
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