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

As part of the process, Fidelity will introduce proprietary Climate Ratings which leverage 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.

Fidelity says the policy will encourage companies to reduce their impact on the planet and deliver value for all stakeholders in a decarbonising world.

“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.”