Companies are increasingly focusing on ESG, according to a survey by Fidelity International of its global analysts.
Following a pronounced rise in climate change awareness and corporate reform, 90% of Fidelity analysts reported that some or all of the businesses they cover are upping their ESG game this year, 20% more than 2019.
While ESG has been on the agenda for some time in Europe, it is now playing more of a role in Asia, the study found.
In China, 80% of analysts reported an increase in ESG emphasis at some or all of their companies for 2020. In 2018, this figure was just 33%.
ESG – or environmental, social and governance – emphasis is also on the rise in Canada and the US, it was found.
Just over 90% of Fidelity’s analysts covering the North American region cited a growing focus on ESG at companies, compared to under 60% last year.
Jenn-Hui Tan, global head of stewardship and sustainable investing at the firm, said: “It is encouraging to see an increased focus on ESG from China corporates.”
“We believe this is due a combination of factors including the Chinese authorities’ drive to improve governance, a rush among companies to invest in renewables before government subsidies are cut, and calls from investors for greater transparency around supply chains,” he added.
© 2020 funds europe
