Fidelity International has pledged to reduce CO2 emissions across its portfolio by 50% by 2030.

As part of the announcement, Fidelity will introduce proprietary Climate Ratings. The Ratings will use Fidelity’s in-house research to assess the net zero ambition and alignment of investee companies and will be used to set targets for the net zero pathway of its funds.

“As a responsible investor, we must understand the carbon footprint of the portfolios we manage for our clients and work with the companies we invest in to reduce emissions in alignment with global net zero targets,” said Jenn-Hui Tan, Global Head of Stewardship and Sustainable Investing, Fidelity International.

“Fidelity invests in many of the world’s leading companies and we want to use our influence as active stewards of capital to help the world meet its climate goals. This long-term, engagement-led policy aims to hold businesses to account for their carbon footprint and ensure that transparent public markets are a powerful force for decarbonisation.”

As part of the pledge, Fidelity has also committed to phase out exposure to the thermal coal sector in OECD countries by 2030 and by 2040 globally. This commitment is in line with the IEA’s Net Zero 2050 recommendations and global efforts to limit climate change to 1.5 degrees.