Fidelity has committed to halve the CO2 emissions from its investment portfolio by 2030.

The commitment is part of the investment manager’s climate investing policy launched this morning.

The policy aligns its long-term active asset management strategy with a net zero future.

To help it in halving its CO2 emissions, Fidelity said it will introduce its own climate ratings. The ratings will assess the net zero ambition and alignment of companies it invests in and will be used to set targets for the net zero pathway of all its funds.

Jenn-Hui Tan, global head of stewardship and sustainable investing, at Fidelity said: “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.

“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.”

The firm is a founding signatory to the Net Zero Asset Managers Initiative. The initiative aims for all its signatories to reach net zero by 2050.

Climate Ratings will be rolled out for all companies Fidelity invests in and integrated into all investment decisions.

In the first phase, the ratings will be used to identify engagement opportunities in high-impact sectors and to set interim targets for 2025 and beyond to ensure that all funds which promote environmental or social characteristics and those with a sustainable investment objective are aligned with a net zero trajectory by 2050.

Where issuers are assessed to be not aligned but have a credible transition pathway, Fidelity said it will seek to “enhance its engagement with management and influence progress towards reduced emissions”.

The investment manager also said it will phase out exposure to the thermal coat sector in OECD countries by 2030 and by 2040 globally as part of the efforts to ensure its portfolio is aligned with a net zero future.

Fidelity said this gradual exit will, “give companies the opportunity to demonstrate their ability to transition” and will be guided by Fidelity’s Climate Ratings and engagement policy. If companies do not show progress towards net zero in a timeframe of up three years, Fidelity will look to divest.

Fidelity has also committed to reducing emissions from its own operations. It aims to reduce company-wide operational carbon emissions to net zero by 2030.