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Significant Gap in Corporate Net Zero Ambitions – Fidelity

Asset manager Fidelity International’s third annual ESG analyst survey has warned that there is still a “big gap” between the “action needed to deliver net zero and what the corporate world is currently doing”. The survey, which examines the views of its in-house analysts globally to find key ESG trends in the corporate landscape, observed that less than 60% of companies are currently on track to cut their carbon emissions to net zero by the UN agreed target of 2050. Further, only one in four firms are projected to achieve the more ambitious target of reducing emissions by 45% by 2030. While the survey noted “good progress” had been made with 69% of European companies already allocating the funds needed to reach net zero by 2050, there is “still a need to further accelerate”. The research flagged gaps in technology, gaps between target and actions, and the amount of funding currently allocated to reducing carbon emissions being “short of what’s required” as being “significant obstacles”. Responding to the survey, 60% of Fidelity International’s analysts said government regulation was one of the top three most important factors for driving change in ESG practices, with regulatory updates possessing the ability to “compel businesses to improve”. Jenn-Hui Tan, Global Head of Stewardship and Sustainable Investing at Fidelity International, said: “Governments, like policy decision makers have a key role to play in creating an enabling environment for the transition, as does the financial sector through investor engagement, shareholder action and asset allocation.”  

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