Fidelity Advisor®Managed Retirement Inc's holdings are exposed to average levels of ESG risk relative to those of its peers in the Target Date category, thus earning it an average Morningstar Sustainability Rating of 3 globes. Competing funds in the category with ratings of 4 or 5 globes have less ESG risk in their holdings. Unlike impact, which measures positive environmental and societal outcomes attributable to an investment, ESG risk reflects the degree to which investments could be affected by material ESG issues like climate change and inequalities.
Fidelity Advisor®Managed Retirement Inc has a Carbon Risk Score of 8.20, indicating portfolio companies face low carbon-related risks in the transition to a low-carbon economy. Currently, the fund has 8.47% involvement in fossil fuels, which compares favorably with 8.54% for its average category peer. Companies are considered involved in fossil fuels if they derive some revenue from thermal coal, oil, and gas.
One potential issue for a sustainability-focused investor is that Fidelity Advisor®Managed Retirement Inc doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes.
The fund has a modest level of exposure (8.38%) to companies with high or severe controversies. Companies with high or severe controversies are involved in incidents such as corruption, employee abuses, environmental incidents, and corporate scandals that pose serious business risks to the company.