Fidelity International will add three new Luxembourg-domiciled funds to its sustainable range.

The Sustainable Asia Equity Fund, Sustainable European Smaller Companies Fund and the Sustainable Japan Equity Fund sit in Fidelity’s Sustainable Family of Funds, which currently comprises eight funds.

All these funds must have, as a minimum, at least 70% of their holdings in MSCI-rated ESG scores of at least BBB or, if there is no MSCI rating, FIL ESG scores of at least C, and the remaining 30% must have improving ESG trajectories.

The Sustainable Family’s investment approach centres around engagement, exclusion, and Fidelity’s proprietary research. This combines Fidelity’s focus on active engagement with an enhanced exclusion framework.

Jenn-Hui Tan (pictured), global head of stewardship and sustainable investing, said:“We have responded to our clients’ demands in recent years by substantially developing our in-house resources to scrutinise and map sustainability risks, including the introduction of our proprietary sustainability ratings, which form the cornerstone of our ESG analysis.

“Our Sustainable Family has grown from five to eleven funds in just over a year, and I fully expect this trend to continue in line with rising regulatory focus and increasing client demand.”