Building on the strong momentum and increased signatory interest in Emerging Markets and Developing Economies (EMDEs), the Net Zero Engagement Initiative (NZEI) is expanding its focus in 2026. This work complements our broader efforts to strengthen stewardship and engagement opportunities in emerging markets and developing economies.
Launched in early 2023, NZEI is an investor‑led initiative supporting IIGCC members to align more of their portfolios with net‑zero commitments through collaborative corporate engagement. The initiative has grown rapidly since launch, now supporting 114 investors engaging with 139 companies across regions and sectors, with demonstrable progress across a growing number of focus companies.
While signatories are already engaging with companies across EMDE regions, NZEI is now proposing an additional list of 50 companies across 11 EMDE countries to help amplify these efforts. This enhanced approach aims to support more strategic alignment among signatories and accelerate progress toward net zero pathways in high‑priority markets.
This list sits alongside our wider engagement activities across Europe and Asia. NZEI currently supports engagement across 26 countries, and the EMDE-specific focus list represents an additional area of emphasis rather than a shift away from that broader focus.
The full list is available on IIGCC’s members‑only page, where investors can register their interest in joining engagements with companies that are a priority for them.
The EMDE‑focus list has been developed using three equally weighted quantitative criteria:
The list has then been further refined using additional qualitative considerations to reflect EMDE‑specific realities, drawing on insights provided directly by investors during our members-only workshops at IIGCC Engage 2026 in February. The list of companies was externally reviewed by a data provider and an emerging markets-based partner organisation to ensure alignment.
Compared to last year, when NZEI first formalised its focus on emerging markets, the scope of engagement has expanded significantly.
The 2026 EMDE focus list builds on this initial momentum, growing from engagement across 26 markets (including 6 EMDEs already on the list) to include 11 EMDE markets – such as China, India, and South Africa – reflecting both increased investor interest and deeper analytical coverage.
EMDEs are central to the global transition: they drive the majority of future emissions growth, face rapid biodiversity loss, and underpin critical supply chains. These markets also offer major opportunities for low‑carbon investment, while climate and nature risks originating in EMDEs can have systemic global impacts.
At the same time, engaging effectively in EMDEs is often more complex. Investors face a range of challenges including data gaps, evolving regulatory environments, market-specific transition pathways, and capacity constraints at both company and ecosystem levels.
Against this backdrop, the extended focus on EMDEs within the NZEI focus list reflects direct feedback from IIGCC members, who have consistently highlighted these markets as a high priority for accelerating net zero progress. In response, NZEI is strengthening its support to help investors engage strategically and collaboratively where it matters most.
By joining these engagements, investors can:
NZEI has been designed to adapt to investors’ evolving needs, with an annually refreshed company focus list that incorporates investors' evolving priorities and inputs to maximise the impact of engagement.
In 2025, NZEI supported 114 investors engaging with 139 companies, marking meaningful progress in the quality of investor-led engagement.
Scalability has been embedded into the initiative from the start. NZEI offers an agile approach to engaging companies beyond a narrow group of the world’s largest corporate emitters – focusing on companies that are systemically important within high‑emitting sectors and with the potential to make meaningful progress towards net zero.
This model enables signatories to engage with more companies in their portfolios across regions, sectors and industries, supporting alignment with the goals of the Paris Agreement.
Engagements are structured around six core asks aligned with the Net Zero Investment Framework (NZIF 2.0), the mostly widely used net zero guidance by investors:
NZEI’s approach has already delivered notable progress with companies such as SNAM, Knorr‑Bremse, IAG, Mondi and Veolia, whose strengthened climate plan was approved by the Science‑Based Targets initiative (SBTi) and rated “Advanced” by Moody’s in 2024. NZEI started in 2023 with 90 investors engaging with 107 focus companies in Europe and continues to expand.
If you would like to explore how NZEI can support your stewardship objectives or discuss any challenges related to net zero engagement, please book one of our weekly 1:1 session held every Wednesday. You can book directly via IIGCC’s members‑only page for NZEI.
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