Just 43 per cent of analysts surveyed by Fidelity believe companies have a credible net zero goal for 2050.
The findings were revealed in the firm's annual ESG survey which gathered the views of Fidelity analysts across the world, drawing on information from around 20,000 individual company interactions.
Globally, Fidelity’s analysts said 68 per cent of companies they cover have been responsive to their engagement efforts over the past 12 months.
Companies in Japan led the pack with 89 per cent keen to engage in the last year, followed by EMEA / Latin America at 83 per cent and Asia Pacific (excluding China and Japan) at 71 per cent.
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."
As it stands, just 43 per cent of Fidelity’s analysts surveyed believe companies have a credible net zero goal for 2050.
However, 85 per cent believe companies are addressing threats to their businesses posed by climate change.
They thought regulation was the most likely way to convince companies to do more.
Tan added: "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.”
tara.o'connor@ft.com
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