The number of energy and utility companies appearing on norms-based exclusion lists has sharply risen in the second quarter of 2026, new data shows.
Swiss ESG ratings agency Covalence has updated its norms-based exclusions monitor for Q2 and observed a significant rise in the number of companies appearing on those lists during the quarter.
There were an additional 671 exclusions for energy companies in Q2, taking the total to 1,912. The energy sector now accounts for 30.2% of all norms-based exclusions tracked by Covalence, up from 25.9% in Q1. That brings the number of companies now appearing on at least one list to 411, up from 351 in the previous quarter.
For utilities, there were an additional 250 exclusions during Q2 taking the total to 793, with utilities now accounting for 12.5% of all norms-based exclusions, up from 11.3% in Q1. That means 198 firms now appear on at least one list.
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The sharp increase is predominantly among companies based in China, the US and Canada.
Covalence said that these sectors are not automatically excluded, but rather companies in those sectors that do not make efforts to combat climate change are increasingly being excluded.
The key reasons cited to justify the exclusions seen in Q2 included “climate-related factors”, “climate criteria”, “GHG emissions”, “fossil expansion”, “climate standards”, and “fossil – missing transition plan”.
Q2 also marked the inclusion of Elon Musk’s SpaceX on several norms-based exclusion lists after the company went public on June 12.
