How ethical and sustainable is Fidelity?
Fidelity is a pension provider that appears in The Good Shopping Guide’s Ethical Pensions Ratings Table.
Although Fidelity has not yet met our Ethical Benchmark, we hope to see the brand make progress in the future.
We would have extra confidence in this brand if it submitted itself to apply for Ethical Accreditation, whereby The Good Shopping Guide would make further detailed assessments and recommendations for ethical and sustainability policy and business action improvement and implementation.
What does Fidelity do?
Fidelity Management & Research (FMR) was founded by Edward C. Johnson II in 1946. The business created Fidelity International Limited (FIL) in 1969 to cater to markets outside of the US. In 1980, it later spun off as a different business that was run and owned by its employees. In 1982, the FMR company initially began offering 401k programmes. Since 1984, it has offered automated stock trading.
Geode Capital Management was established in 2001 to oversee and create investment plans for FMR. In 2003, it started operating on its own. In 2003, the company released its first ETF, the Fidelity Nasdaq Composite Index Tracking Stock Fund. (ONEQ).
In October 2019, the company unveiled Fidelity Digital Asset Services, which would manage cryptocurrency custody and trading execution for institutional clients. Following that, Fidelity applied to the SEC in March 2021 to launch a Bitcoin ETF. Fidelity’s assets under management rose by 26% in 2019 to a record $3.2 trillion, helping to drive up the company’s revenue to $20.9 billion and operating income to $6.9 billion.
Fidelity Investments declared in April 2022 that by the middle of the year, it would begin providing Bitcoin as an investment option, specifically in its 401k programmes. According to CNN, it is also the first significant 401k provider to let customers invest in cryptocurrencies. However, as of the date hereof, this option shall be available only to participants whose employers have so opted to incorporate such an option in their plan.
For which criteria does Fidelity perform poorly?
Despite Fidelity’s progress, there is still room for improvement. Fidelity was marked down under our criteria for Irresponsible Lending, Responsible Investment Policy, and Other Criticisms. The brand is also yet to achieve Ethical Accreditation.
In what areas does Fidelity score well for its ethics?
Fidelity performs well for its Environmental Report and has also not been found to be linked to Environmental Destruction in any way; this is encouraging, as consumers can be reassured that their hard-earned money will not be used to invest in deforestation or purposeful environmental degradation in any way. The brand was also researched and rated for its Carbon Disclosure & Reduction Targets, and this report was found to have clear progress tracking and goals, to which the brand can be held accountable.
For more information about how we rank and research brands for our Ethical Ratings Tables, see our methodology page, which explains the rationale behind our sustainability and ethical research.
Brands and companies who apply for Ethical Accreditation are able to receive tailored advice about their sustainability and ethics policies and implementation. Successful applicants also get access to our acclaimed Good Shopping Guide Ethical Mark, which distinguishes the brand as an ethical sector leader. Get in touch for more details, or see our Application page to begin the process of Ethical Accreditation with The Good Shopping Guide.
Ethical performance in category
GSG category benchmark
Carbon Disclosure & Reduction Targets
Responsible Investment Policy
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