Fidelity analysts not convinced companies have credible net zero goals

Illuminem summarizes for you the essential news of the day. Read the full piece on FT Advisor or enjoy below:

🗞️ Driving the news: Just 43% of Fidelity analysts surveyed believe companies have credible net zero goals for 2050, according to Fidelity's annual ESG survey
• Despite this, 85% of analysts think companies are addressing climate-related threats

🔭 The context: The survey reflects the views of Fidelity analysts worldwide, based on around 20,000 individual company interactions
• Companies in Japan showed the highest engagement in ESG efforts, with 89% actively participating, followed by EMEA/Latin America at 83%, and Asia Pacific (excluding China and Japan) at 71%

🌍 Why it matters for the planet: Achieving credible net zero goals is critical for mitigating climate change impacts, but current corporate plans are seen as insufficient by many experts
• This gap indicates a need for stronger commitments and actions to meet global climate targets

⏭️ What's next: Regulation and government incentives are viewed as essential to drive companies toward credible net zero commitments
• Continued support and pressure from shareholders are also necessary to ensure long-term sustainability goals are met

💬 One quote: "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," stated Jenn-Hui Tan, Chief Sustainability Officer at Fidelity International

📈 One stat: 68% of companies covered by Fidelity's analysts have been responsive to ESG engagement efforts over the past 12 months

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