Fidelity International Analyst Survey: A watershed year for ESG

As we enter a new decade,  has uncovered a tipping point for corporates globally as they recognise that considering environmental, social and governance factors is not just the right thing to do, but good business too.

This year, 90 per cent of Fidelity International’s analysts report that some or all of the companies they cover are focusing more on ESG, up from 70 per cent in 2019. Following a pronounced increase in climate change awareness and corporate reforms, the change can be seen throughout most sectors and all regions, including areas where ESG interest had previously appeared to stall or be in decline.

Each year Fidelity International surveys its global analyst team to take the pulse of the corporate landscape. Unlike many other top-down macro-economic surveys, the research starts at the bottom, aggregating c. 15,000 individual company meetings until a big picture emerges.

While corporate governance is generally improving, with greater levels of investor engagement throughout the world, companies have made less progress on board diversity. Most Fidelity International analysts report that their companies’ boards have low to middling diversity, with almost no change on the previous year.