Fidelity analysts see big increase in ESG

The latest Fidelity’s Analyst Survey says that 2020 will be a watershed year for ESG.

The 2020 Survey says that 90% of Fidelity analysts report that some or all of the companies they cover are focusing more on ESG. This includes most sectors and all regions, including
areas where ESG interest had previously appeared to stall.

The survey also notes that whilst ESG predominates in Europe, it is on the increase in both China and the US. 80% of Fidelity analysts say that Chinese companies they cover have implanted some form of ESG policy. The figure is 90% for US companies.

When it comes to sectors, energy and industrials look set for an ESG resurgence after being distracted by poor financial performance in 2019. 75% of energy analysts say that most companies they cover are stepping up their ESG efforts, compared to just one-third last year. For industrials, it almost trebled to 45 per cent, from 16 per cent. Fidelity says the changes are being being driven by greater climate-change awareness and its impact on asset values.