Companies Embrace Sustainability Amid Greenwashing Worries
A new survey by Fidelity International reveals that investment companies are still prioritising sustainability efforts, despite concerns about "greenwashing" and potential ESG fatigue.
Key Findings
- Progress Towards Net Zero: While only 43% of analysts surveyed believe companies have truly achievable net zero goals for 2050, there is a clear commitment to improvement.
- Drivers of Change: Regulation, government support, and active shareholders are seen as the main forces pushing companies to improve their environmental practices.
- Engagement Success: Globally, 68% of companies responded positively to engagement efforts from analysts in the past year, with Japan leading the pack at 89%.
Expert Insight
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.”
The Road Ahead
The survey highlights the need for ongoing support to help companies reach net zero goals. Effective regulation, government incentives, and shareholder action are all seen as crucial elements in creating a supportive environment for this transition.
Survey Methodology
Fidelity's survey leverages the insights of its global analysts, drawing on information from roughly 20,000 interactions with individual companies. This approach helps identify key trends in corporate sustainability practices.
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Source: Funds Europe
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