Only 43% of firms have credible net zero plan

Fidelity International’s latest annual ESG survey shows that Fidelity analysts find that only 43% of corporations have a credible net zero strategy.

Fidelity’s ESG survey includes the views of its in-house analysts using information from around 20,000 individual company interactions to find key ESG corporate trends.

Fidelity’s analysts reported 68% of companies they cover have been responsive to their engagement efforts over the past 12 months. However, only 43% of Fidelity’s analysts surveyed believe companies have a credible net zero goal for 2050.

Fidelity’s analysts have identified three areas that are expected to spur improvements in companies’ environmental practices: regulation, government support, and shareholder action.

Jenn-Hui Tan, Chief Sustainability Officer at Fidelity International, said, “While companies may be lagging on their transition plans, there is growing awareness of the threats posed by a warming climate and deteriorating ecosystems, providing companies with a strong incentive to stay engaged.

“Despite an openness from companies to engage, our survey highlights there is still a long way to go, and companies need continued support in reaching their net zero goals. Regulation, government incentives and shareholder action all have a key role to play in creating an enabling environment for a successful corporate net zero transition, recognising that long term decision-making requires careful consideration of trade-offs and limitations in both financial and sustainability objectives, against an uncertain macro backdrop.”