In 2023, we launched our first three-year Climate Stewardship Plan as an actionable framework for managing climate-related risks in relation to our funds. This programme has now concluded, and as we prepare for the launch of our new Plan, we have the opportunity to reflect on what we have learnt from sustained engagement with some of the highest emitters in our portfolios, including progress made and the challenges that remain.
There is much to be encouraged by. Across the companies covered by the Plan, we’ve seen improvements in climate disclosure, target-setting and, most notably, the quality of corporate transition planning. However, progress has not been uniform. Some companies have responded positively to our engagement objectives, while others remain some distance from our expectations.
Stewardship rarely follows a linear path, and three years of engagement cannot resolve every climate-related risk. What the Plan has provided is a structured way to assess companies consistently, communicate where improvement is needed and escalate our activity when sufficient progress has not been made.
Why we introduced the Plan
At EdenTree, we recognise that climate change poses a threat to both people and planet, and we view it as a financially material risk. It is, therefore, our fiduciary duty to address this risk in order to protect and grow long-term value for our clients.
Our Climate Stewardship Plan forms part of our wider Climate Change Strategy. Fundamental to our Climate Strategy is the successful decarbonisation of our heaviest emitting holdings in order to achieve net zero by 2050. Engaging with companies to ensure they develop credible transition plans is critical to the success of our Climate Change Strategy, and precisely why we introduced our Climate Stewardship Plan.
Our expectations and targets
The Plan used data from our annual carbon footprinting exercise to identify the companies that contributed the most to EdenTree’s scope 1 and 2 financed emissions. Once identified, each company was evaluated against 13 expectations reflecting best practice in corporate climate strategy development. These expectations spanned five key areas: climate targets, emissions performance, disclosure, decarbonisation delivery and governance.
Table 1: Climate Stewardship Plan Expectations
| Area | Expectation |
|---|---|
| Climate targets |
|
| Emissions performance |
|
| Disclosure |
|
| Decarbonisation delivery |
|
| Governance |
|
Companies were assessed against each expectation, using a three-point scale: 0 for “not met”, 1 for “partially met”, and 2 for “fully met”.
This produced a maximum possible ‘climate transition score’ of 26 for each company.
Using the findings, we translated companies’ shortcomings across the five areas into tailored engagement objectives. For some companies, this focused on strengthening the ambition of their climate targets, whilst for others, it involved enhancing the credibility of their transition plan, improving emissions disclosures or better integrating climate considerations into their governance structures. These objectives formed the basis of our dialogue with companies.
Figure 1: Climate Stewardship Plan Process
- 1Assess company performance against 13 expectations
- 2Based on outcomes, identify areas for improvement
- 3Translate improvements into engagement objectives
- 4Conduct focused engagement with companies
How we engaged
We engaged consistently with the 18 companies included in the Plan. In 2025, these 18 names were responsible for 74% of EdenTree’s scope 1 and 2 financed emissions.
Our engagement activity comprised 35 direct meetings supplemented by frequent interim touchpoints to maintain momentum and monitor progress throughout each engagement cycle. Where appropriate, we strengthened our stewardship through voting, including escalating concerns through proxy voting and supporting climate proposals where material to the company.
Alongside direct engagement, we also utilised collaborative investor forums, including the Net Zero Engagement Initiative, coordinated by the IIGCC, to broaden our influence and apply pressure in instances where direct engagement alone was not yielding sufficient progress.
Taken together, this layered approach enabled us to drive more meaningful progress and deepen the overall impact of the Climate Stewardship Plan.
Performance during the three years of the Plan
Three years of sustained engagement and annual reassessments against the 13 indicators have revealed clear patterns in how climate practices have evolved and where the most meaningful improvements have occurred.
The chart below summarises the average scores across all companies in the Plan for 2023, 2024 and 2025. A score of 100% reflects full alignment with every expectation, while lower scores indicate that some companies have yet to meet all our requirements.
Figure 2: Climate Stewardship Plan scores 2023-2025
- 2023
- 2024
- 2025
Based on this performance, we have provided commentary below on the trends we have observed within each area, and some of the company successes we have seen during the last three years.
Climate targets
While progress in this area has been more gradual than other indicators, many companies already had ambitious targets in place, and target-setting typically evolves over longer timeframes. Nevertheless, over the past three years, several companies have either set targets for the first time or increased the ambition of their pre-existing targets.
- Ashtead Group introduced a Net Zero Commitment for the first time in 2025.
- Clean Harbors developed its first climate-related targets, targeting a reduction in scope 1 and 2 emissions by 2030.
- Veolia Environnement has a series of comprehensive long-term targets across scope 1, 2 and 3 emissions.
- Mobico achieved validation of its near-term SBT in 2024.
- Electricity Supply Board strengthened its near-term target, to achieve a 44% reduction of scope 1 and 2 emissions by 2028, two years ahead of its original 2030 goal.
Emissions performance
This remains the most variable indicator. While many companies continue to reduce emissions over time, year-to-year fluctuations can occur due to external factors such as geopolitical developments and macroeconomic conditions. This reinforces the importance of engaging broadly on climate-related issues, rather than relying solely on targets as indicators of effective climate risk management.
- Enel returned to its expected emissions reduction trajectory in 2023 following a temporary increase in coal-fired generation caused by geopolitical and weather-related challenges in 2022.
- SSE’s emissions have fluctuated in recent years, reflecting the practical challenges of decarbonising within an energy system where progress remains dependent on the pace of renewable deployment, grid expansion and the UK’s broader energy mix.
Disclosure
By the end of the Plan, all firms reported their scope 1 and 2 emissions, while scope 3 disclosure continues to improve. Companies yet to fully report scope 3 emissions have published disclosure timelines, and we have also seen greater use of independent verification.
- Renewi and Mobico disclosed scope 3 emissions for the first time.
- Keller Group significantly enhanced scope 3 reporting, with full disclosure planned for 2026.
- Mohawk Industries expanded its emissions reporting significantly.
Decarbonisation delivery
This indicator has seen the strongest improvement since 2023. More companies now have credible transition plans in place, fuelled both by investor engagement and increased regulatory pressure; the UK Transition Plan Taskforce, for example, published its framework for corporate transition plans at the end of 2023.
- DS Smith released its first fully fledged transition plan, aligned with the UK Transition Plan Taskforce Framework, in 2024.
- Electricity Supply Board (ESB) strengthened its transition plan, releasing a net zero roadmap to deliver its short- and long-term climate targets.
Governance
Governance has remained the most stable indicator year-on-year since 2023, with almost all companies maintaining board-level oversight of climate strategy and executive accountability for climate-related issues. Many also link climate metrics to executive remuneration.
- Keller Group incorporated scope 1 and 2 emissions reduction targets into its CEO’s long-term incentive plan, with progress disclosed in its remuneration reporting.
Case studies
The following case studies illustrate how companies’ climate performance has evolved over the past three years, including the engagement and escalation activity we undertook, the outcomes we achieved and areas where further progress is required.
Ashtead Group
| Area | 2023 Performance | 2025 Performance |
|---|---|---|
| Disclosure | 33% | 67% |
| Climate targets | 33% | 50% |
| Emissions performance | 50% | 33% |
| Decarbonisation delivery | 50% | 50% |
| Governance | 75% | 75% |
Issue: Ashtead, an international equipment rental company, contributes materially to the financed emissions of several of our funds. When it was added to the Plan in 2023, it lacked explicit emissions reduction targets, a defined net zero goal or published scope 3 emissions.
Action: We were clear about our expectations for the company, engaging with Ashtead for the first time in 2023 and holding follow-up meetings in both 2024 and 2025.
Outcome: Ashtead set a net zero by 2050 target and disclosed their scope 3 emissions for the first time. Despite these steps, Ashtead remains hesitant to set absolute emissions reduction targets, preferring instead to stick with intensity targets. The company is also yet to fully commit to the science-based targets, despite not ruling it out entirely.
Electricity Supply Board (ESB)
| Area | 2023 Performance | 2025 Performance |
|---|---|---|
| Disclosure | 100% | 100% |
| Climate targets | 50% | 50% |
| Emissions performance | 67% | 83% |
| Decarbonisation delivery | 75% | 100% |
| Governance | 100% | 100% |
Issue: ESB is one of the better performers within the Plan, with fairly robust targets and a strong climate transition plan. The core ask of our engagement is for the company to set a concrete timeline for fossil-fuel phase-out.
Action: We have met with ESB several times during the last three years, most recently in November 2025 to discuss the company’s progress against our engagement objectives.
Outcome: The company is demonstrating strong progress against the targets within its net zero transition plan. Most prominently, it has achieved full phase-out of its coal assets, meeting one of our engagement objectives. The company has also committed to a timeline of 2040 for phasing out its oil and gas assets, and has recently strengthened its near-term target, to achieve a 44% reduction of scope 1 and 2 emissions by 2028, two years ahead of its original 2030 goal. The only area where the company remains misaligned with our asks is in respect of the SBTi, where methodological barriers still prevent the company from complying. However, we welcome ESB’s attempts to demonstrate credibility of their pathway through other methods.
Vattenfall
| Area | 2023 Performance | 2025 Performance |
|---|---|---|
| Disclosure | 83% | 83% |
| Climate targets | 83% | 100% |
| Emissions performance | 100% | 83% |
| Decarbonisation delivery | 75% | 100% |
| Governance | 100% | 100% |
Issue: The core improvement areas for Vattenfall were targets and the company’s transition plan. For the former, we sought SBT-verification of its net-zero target, as only its near-term target had been approved in 2023. For the latter, we sought full disclosure of the company’s remaining coal plants, and a more credible decarbonisation roadmap, with actions both timebound and linked to quantified emissions reductions.
Action: We engaged with the company several times throughout the course of the Climate Stewardship Plan, with the final dialogue occurring in December 2025.
Outcome: Vattenfall demonstrated climate leadership by retaining its position as one of the strongest performing companies in the Plan and making the improvements we sought. Key wins included the complete phase-out of all its coal assets, and full alignment of its suite of targets with the SBTi. The company has also developed a robust transition plan, with clear timelines for the phase-out of its remaining oil and gas assets, aligned with its ultimate net zero by 2040 goal.
Next steps
EdenTree’s three-year Climate Stewardship Plan has now concluded. We are encouraged by the progress companies have made and by the Plan’s effectiveness in facilitating constructive engagement dialogue and consistent performance monitoring.
We remain convinced of the financial materiality of climate change, and the important role that sustainable investors have to play in encouraging a low carbon transition through active ownership. Further details on our future engagement plans and how learnings from the outgoing Plan have informed our new strategy will be outlined in our upcoming 2025/26 Climate Stewardship Report.
Disclaimer
This document has been prepared by EdenTree Investment Management Limited and has been produced for information purposes only and as such the views contained herein are not to be taken as advice or recommendation to buy or sell any investment or interest thereto. These are the views of the author at the time of publication and may differ from the views of other individuals/teams at EdenTree Investment Management. The views presented are as of the date published.
References to specific companies are for illustrative purposes only and do not represent a recommendation to buy or sell any securities.
No forecasts can be guaranteed and there is no guarantee that the information supplied is complete or timely, nor are there any warranties with regard to the results obtained from its use. EdenTree is the source of data unless otherwise indicated.
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