The electrification of private transportation represents one of the biggest shifts in the history of motoring, but with some car manufacturers lobbying for more time to phase out their internal combustion engine (ICE) models, the adoption of electric vehicles (EVs) has seen several false dawns. Where governments have provided the right incentives and rolled out charging infrastructure at pace – as in Norway – EV take up has been rapid and widespread.
However, outside certain niche markets there are still significant headwinds, particularly for legacy automakers. The threat of US tariffs and weaker ICE phase out regulations in key markets have introduced fresh uncertainty for manufacturers, providing a disincentive to launch new EV models.
Yet there is plenty to play for. The International Energy Agency (IEA) forecasts that sales of EVs will triple by 2030, with battery and hybrid models accounting for over 50% of cars sold globally. Which companies have the most robust strategies to capture these growth opportunities? One way for investors to assess how committed companies are to electrification is to look at how quickly they plan to cut fleet emissions.
To this end, we have encouraged companies in jurisdictions with strong regulatory support, such as the EU and certain Asian markets, to strengthen their EV strategies. This can be achieved by preparing for more ambitious scenarios and setting 1.5°C Paris Agreement-aligned emissions reduction targets to take advantage of climate-related business opportunities.
We also engage on how companies use their influence to lobby for supportive public policy, both directly and through their trade associations, and ask them to make clear how their climate targets and strategies are incorporated into their financial accounts. In Europe, we have engaged with companies on setting emissions reduction targets and developing an electrification strategy.
To find out more, read the full article in our Q2 2025 Public Engagement Report.
Wheels of fortune
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