Fidelity International (Fidelity), a global asset manager with total client assets of $787.1 billion, today outlines its net zero carbon commitment for its real estate funds. Fidelity Real Estate will commit to a two-phase approach to achieve net zero by 2050 across its fund range. Phase one will focus on reducing operational carbon emissions to net zero by 2035, with phase two to include reducing scope three emission sources to net zero by 2050.
Fidelity Real Estate will apply a two-phase approach in achieving net zero carbon:
To achieve this, Fidelity will embrace best practice principles, such as the World Green Building Council Health and Wellbeing Framework. Each fund will measure and reduce embodied carbon in major refurbishment and developments, use an energy hierarchy to drive down the energy demands of properties, increase both on-site and off-site renewable energy supply, and measure progress against a set of agreed metrics, backed by a strong governance process.
With real estate assets, it is likely some residual emissions may be unavoidable. However, the Fidelity Real Estate Net Zero Commitment is aligned with Fidelity’s Climate Investing Policy, whereby Fidelity will work to try to avoid making purchases in the offset market and focus on Nature Based Carbon Removal strategies to cover compensation.
Commenting on the announcement, Neil Cable, Head of European Real Estate Investments, said: “The climate crisis is the defining challenge of our time and urgent action is needed. As our climate becomes more volatile, so too does the potential disruption to our business. Our net zero carbon commitment aims to enhance resilience and minimise climate-related risks, taking responsibility for our own impact on the environment, whilst enhancing value to investors.
“The next few years will be decisive, both on a global level and for Fidelity International. As the Real Estate division of Fidelity, we need to make sure that we are on the right track to limit global warming, embracing innovation and challenging our current practices to play our part. Our net zero carbon commitment will now become the centrepiece of our strategy for long-term sustainability.”