2O2O PROGRESS REPORT - Action Climate Action - Climate Action 100+
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Action Global Investors Driving Business Transition Climate Action Global Investors Driving Business Transition 2O2O PROGRESS REPORT
ABOUT THIS
REPORT
This report is the second update on progress, issued by the Climate Action 100+
initiative. It summarises overall progress of the initiative including an update on
measurement and benchmarking, key focus company commitments against the
initiative’s goals, growth in signatories, and a sector level update on company
performance against a set of indicators aligned to the aims of the initiative.
THANKS TO CLIMATE ACTION 1OO+ FUNDERS
The five investor networks are thankful for the support of our philanthropic partners:
Bloomberg Philanthropies, Children’s Investment Fund Foundation (UK), ClimateWorks
Foundation with a contribution from the IKEA Foundation, The Grantham Foundation
for the Protection of the Environment, KR Foundation, New York Community
Trust — Lise Strickler and Mark Gallogly Charitable Fund, Sea Change Foundation
International, Martha Records and Richard Rainaldi, Wellspring Climate Initiative, and
our anonymous supporters.
CLIMATE ACTION 100+ IS SUPPORTED BY
FIVE COORDINATING INVESTOR NETWORKS
Notes
All values are in USD unless otherwise stated.
The reporting period (‘this year’) spans 1 October 2019 - 30 November 2020 unless
otherwise stated. For 2019 data, please see the 2019 progress report.
2
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORT
CONTENTS
1 WHO WE ARE 4 WHERE WE ARE MAKING PROGRESS
5 Report introduction and highlights 66 AIGCC-PRI Asia Working Group update WHO WE ARE 1
6 Highlights: 2020 company commitments 68 Ceres North America Working Group update
9 Foreword from Mark Carney 70 IGCC Australasian Working Group update
HOW WE MEASURE PROGRESS 2
10 Foreword from the Steering Committee 71 IIGCC Europe Working Group update
11 Executive summary of report findings 73 PRI Global Working Group update
HOW COMPANIES ARE
PROGRESSING 3
WHERE WE ARE MAKING
PROGRESS 4
2 HOW WE MEASURE PROGRESS 5 KEY ISSUES IN 2020
15 The Climate Action 100+ Net-Zero Company 76 Towards net-zero emissions by 2050
KEY ISSUES IN 2020 5
Benchmark 78 Trade association lobbying in 2020
16 Disclosure indicators 79 Just transition
21 Capital allocation indicators
HOW WE ARE GOVERNED 6
APPENDIX 7
3 HOW COMPANIES ARE PROGRESSING 6 HOW WE ARE GOVERNED
25 Review of company progress 82 How the initiative is governed
29 Oil and gas sector 86 Priorities for 2021
35 Mining and metals sector
41 Utilities sector
49 Industrials sector
54 Transportation sector
61 Consumer products sector
7 APPENDIX
88 A: Data indicators used in this report
LEGEND 90
91
B: Technical Advisory Group
C: Acknowledgements
Next/previous page Internal page reference
Home
(click to go to page)
3
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORT
1
WHO WE
ARE 545
TOTAL SIGNATORIES
REPRESENTING
SIGNATORY ASSETS UNDER
MANAGEMENT TOTAL
$52
TRILLION
4
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORT
REPORT INTRODUCTION
AND HIGHLIGHTS
WHAT IS CLIMATE WHO IS BEHIND THE WHO WE ARE 1
ACTION 1OO+? INITIATIVE? CLIMATE ACTION 1OO+ AT A GLANCE Report introduction and highlights
545 16O
Highlights: 2020
company commitments
Launched in 2017, Climate The initiative has been shaped and Foreword from Mark Carney
Action 100+ is now the led by its participating investors Foreword from the
Steering Committee
largest ever investor who determine the engagement
FOCUS COMPANIES IN 32 MARKETS2
Executive summary of report findings
strategy pursued with each focus SIGNATORY INVESTORS
engagement initiative company and update the initiative HOW WE MEASURE PROGRESS 2
on climate change. The on progress.
initiative focuses investor SIGNATORY ASSETS UNDER COMPANIES ENGAGED BY THE INITIATIVE
The management of the initiative HOW COMPANIES ARE
engagements on 160 MANAGEMENT TOTAL 1 ARE RESPONSIBLE FOR AN ESTIMATED PROGRESSING 3
$52 8O%+
day to day and engagement of
global companies that have investors is assisted by five investor
significant greenhouse gas networks: the Asia Investor Group on WHERE WE ARE MAKING
PROGRESS 4
(GHG) emissions and/or Climate Change (AIGCC), Ceres, the
are critical to the net-zero Investor Group on Climate Change
OF GLOBAL INDUSTRIAL
TRILLION
(IGCC), the Institutional Investor
emissions transition and to Group on Climate Change (IIGCC) EMISSIONS3 KEY ISSUES IN 2020 5
meeting the objectives of and the Principles for Responsible
the Paris Agreement. Investment (PRI). HOW WE ARE GOVERNED 6
INVESTOR TOTAL MARKET CAP FOR
By engaging with these focus The investor networks provide SIGNATORIES IN ALL FOCUS COMPANIES IS
32 MARKETS $8.4
companies, signatory investors secretariat support for investors,
help facilitate meetings, provide APPENDIX 7
to Climate Action 100+ are
helping to accelerate the business technical assistance and create
transition to a net-zero emissions opportunities for engagement skills
future and ensure that global
economies are more resilient to
enhancement. The investor networks
also lead regionally focused working TRILLION 4
climate change. groups that support engagement
with a subset of focus companies
For more information, visit: and help to ensure engagements are
www.ClimateAction100.org and effective.
follow: @ActOnClimate100.
For more detail on the governance 1 As at 30 November 2020.
2 Represents active engagements in 2019 and 2020, and does not include new additions to the Climate Action 100+ focus list. See page 85
and operations of the initiative for more information about the companies added to our focus list in 2020.
please visit the website and the 3 Based on total 2018 emissions for all Climate Action 100+ focus companies (CDP data), compared to 2018 global emissions
2019 progress report. (Global Carbon Project data).
4 Bloomberg data as at 30 November 2020.
5
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORT
HIGHLIGHTS: 2O2O
COMPANY COMMITMENTS
These highlights are a small selection of company
commitments from 2020
WHO WE ARE 1
FOCUS COMPANIES OIL AND GAS Report introduction and highlights
BY SECTOR1 Highlights: 2020
company commitments
Foreword from Mark Carney
39
BP ENEOS HOLDINGS INC OCCIDENTAL PETROLEUM PETROCHINA CO. LTD Foreword from the
Steering Committee
CORPORATION Executive summary of report findings
OIL AND GAS COMPANIES BP has set a new ambition to ENEOS updated management plans Occidental Petroleum announced PetroChina announced a near-zero HOW WE MEASURE PROGRESS 2
become a net-zero emissions and company vision for carbon an operational net-zero by 2040 emissions target by 2050, and
23
company by 2050 for scope 1, 2 neutrality by 2040 through its target and ambition for net-zero plans to use some of the $38 billion
and 3 with a 50% cut in the carbon updated 'vision for 2040', including associated with the use of its received from gas pipeline sales to HOW COMPANIES ARE
3
PROGRESSING
intensity of products it sells by 2050 aspirations to link social and products by 2050. focus on wind and solar power.
MINING AND METALS or sooner. It also became the first environmental goals to executive
COMPANIES
oil major to announce that it will cut remuneration and investing 14 billion WHERE WE ARE MAKING
4
31
production 40% by 2030. into its business transition plan. PROGRESS
KEY ISSUES IN 2020 5
UTILITIES COMPANIES
26
INDUSTRIALS COMPANIES
RELIANCE INDUSTRIES REPSOL ROYAL DUTCH SHELL SK INNOVATION CO LTD
HOW WE ARE GOVERNED 6
APPENDIX 7
26
TRANSPORTATION
Reliance Industries announced a
target to become net carbon zero
by 2035.
Repsol announced an ambition
to achieve net-zero emissions by
2050 for scope 1, 2 and 3 emissions
becoming the first global oil and
Shell has set a new long-term
ambition to reduce the net carbon
footprint of its energy products by
65% by 2050, and by around 30%
SK Innovation reconfirmed its
commitment to achieving Green
Balance 2030 by 2030, ultimately
aiming to achieve net zero
COMPANIES
gas company to assume this goal. by 2035. To reach overall net-zero emissions in all material scope 1, 2
14
emissions, Shell will pivot towards and 3 emissions by 2050.
serving customers that are aligned
with its net-zero ambitions.
CONSUMER PRODUCTS
COMPANIES
1 The focus list includes one company that is
classified as ‘other’ which is not included in
this list.
6
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORT
HIGHLIGHTS: 2O2O
COMPANY COMMITMENTS
MINING AND UTILITIES CONSUMER
METALS PRODUCTS
WHO WE ARE 1
BHP AGL ENERGY LTD PGE POLSKA GRUPA THE SOUTHERN COMPANY UNILEVER PLC
ENERGETYCZNA S.A. (PGE) Report introduction and highlights
Highlights: 2020
BHP made a significant AGL targeted net-zero emissions PGE published a new strategy Southern Company reaffirmed Unilever announced it would achieve company commitments
Foreword from Mark Carney
enhancement in its approach to by 2050 and set out plans to which contained, among other its mid-term goal of a 50% net-zero emissions from all its
Foreword from the
industry associations and lobbying invest more in renewable energies things, a commitment to carbon reduction in GHG emissions by products by 2039 in addition to its Steering Committee
on climate to ensure improved and tested the resilience of its neutrality by 2050. The long-term 2030 and set a new long-term goal existing science-based target to Executive summary of report findings
climate policy positions from plans against a 1.5°C climate strategic goal of the company is for of net-zero carbon emissions by reduce its scope 1 and 2 emissions
associations it is a member of, and pathway scenario. 100% of the energy sold by PGE to 2050. The company complemented 100% by 2030. It intends to establish HOW WE MEASURE PROGRESS 2
to improve real-time disclosure come from renewable sources by this commitment with the report a 1 billion Climate and Nature
on misalignment and escalation. 2050. The company will also reduce ‘Implementation and action toward Fund to invest in projects such as
The company also set a medium- its investment in coal. PGE also net-zero.’ The goal does not cover reforestation, carbon sequestration HOW COMPANIES ARE
PROGRESSING 3
term target to reduce operational set interim targets and milestones. scope 3 emissions. and conservation.
emissions by 30% by 2030. Specifically, by 2030, the share of
renewable energy in the company's WHERE WE ARE MAKING
4
PROGRESS
portfolio will increase to 50% and
carbon dioxide emissions will be
reduced by 85%. KEY ISSUES IN 2020 5
XCEL ENERGY INC. WEC ENERGY GROUP, INC. WOOLWORTHS GROUP LIMITED HOW WE ARE GOVERNED 6
Xcel Energy published its ‘Electric WEC Energy upgraded its 2030 Woolworths set a medium-term APPENDIX 7
Vehicle Vision’, announcing intent goal from 40% to 70% emissions science-based target to reduce its
to power 1.5 million electric vehicles reduction, and its 2050 goal from operational emissions by 63% and
(EVs) in its service areas by 2030 80% emissions reduction to net scope 3 emissions by 19% by 2030,
and an investment of $300 million carbon neutral generation. The which was endorsed by the Science
to accelerate adoption of EVs in goal does not yet cover scope 3 Based Targets Initiative.
its communities. emissions.
7
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORT
HIGHLIGHTS: 2O2O
COMPANY COMMITMENTS
INDUSTRIALS TRANSPORTATION
WHO WE ARE 1
CEMEX S.A.B. DE C.V. HON HAI PRECISION INDUSTRY AMERICAN AIRLINES GROUP INC. DELTA AIR LINES, INC. FORD MOTOR COMPANY
Report introduction and highlights
Highlights: 2020
Cemex committed to delivering Hon Hai committed to ensuring that American Airlines released a new Delta Air Lines announced a Ford announced its ambition to company commitments
Foreword from Mark Carney
net-zero carbon dioxide (CO2) its GHG emissions policies across ESG (Environmental Social and commitment to carbon neutrality become carbon neutral by 2050,
Foreword from the
concrete by 2050 and linking its the value chain are consistent with Governance) report in October and to offset all its emissions signed a compromise agreement Steering Committee
targets/performance to executive the goals of the Paris Agreement 2020 formally committing the from March 2020 onward. It also with California (“California Executive summary of report findings
compensation. The company will with an aim to achieve net-zero company to net-zero emissions announced a $1 billion investment Agreement”) under which it agreed
also be setting science-based GHG emissions by 2050. This comes by 2050. The company intends to to meet its new goals. to comply with standards stricter HOW WE MEASURE PROGRESS 2
targets for 2030. with an acknowledgement as a do this via a combination of fuel than the Trump Administration’s
response to the objectives set out efficiency, operational efficiencies, vehicle emissions standard.
by Climate Action 100+. fleet renewal, new aircraft types, HOW COMPANIES ARE
PROGRESSING 3
sustainable aviation fuels, carbon
offsets, and the use of renewable
energy at the company's facilities. WHERE WE ARE MAKING
4
PROGRESS
CUMMINS INC. LAFARGEHOLCIM LTD QANTAS AIRWAYS LIMITED ROLLS-ROYCE KEY ISSUES IN 2020 5
Cummins announced a new LafargeHolcim set a net-zero Qantas announced a net-zero by Rolls-Royce announced a HOW WE ARE GOVERNED 6
sustainability strategy, committing emissions by 2050 target and 2050 target, the first airline in the commitment to net-zero emissions
it to net-zero emissions by 2050 in committed to set a science based world to do so, to cap its emissions in its operations by 2030 and to
company operations. The company 2030 emissions reduction target. It at 2019 levels, invested $50 million play a leading role in enabling the APPENDIX 7
also set new emissions reduction also announced that it is partnering in advanced biofuels research and sectors in which it operates to reach
targets including a science-based with the Science Based Targets development, and doubled its offset net-zero emissions by 2050. It
target which included coverage Initiative to pioneer setting climate program. intends to publish a roadmap by the
of scope 3 emissions, committing targets for a 1.5°C future in the end of 2020 with interim targets to
it to reduce emissions by 25% cement sector. achieve these aims.
from newly-sold products, and
partnerships with customers to
reduce emissions by 55 million
tonnes by 2030.
8
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORT
FOREWORD FROM MARK CARNEY
As we navigate the Climate change, and society’s analysis to support the world’s Our collective expectations WHO WE ARE 1
recovery from the response to it, is creating highest-emitting companies in of transition plans, as well as
unparalleled risks and the strategic resets they need approaches to measuring the Report introduction and highlights
Covid crisis, there are opportunities. Those companies to make. Companies are clearly position of companies and Highlights: 2020
company commitments
high expectations that that are part of the solution and taking note. As this progress portfolios on the transition path, Foreword from Mark Carney
businesses adapt their are making the transition to net- report reveals, 2020 has seen a will continue to evolve and Foreword from the
strategies in a way that zero have the opportunity to surge in net-zero announcements, ratchet up as we move towards Steering Committee
thrive and will create enormous with many of these commitments net-zero. And as investors Executive summary of report findings
considers the most
value for their shareholders. driven through investor increasingly demand these
pressing issues for people Those that don’t will become engagement. I have been truly strategies of companies, it may
HOW WE MEASURE PROGRESS 2
and planet. Indeed this increasingly uncompetitive and astounded by the momentum in be desirable to give them a
crisis has reinforced could lose their social licence to the past year alone, particularly “Say on Climate” – an automatic HOW COMPANIES ARE
PROGRESSING 3
society’s demand for a operate. By the time of the 2021 given the backdrop of the annual advisory vote on transition
sustainable future that UN Climate Change Conference Covid-19 pandemic. plans just as there is an advisory
in Glasgow, transition plans for “say on pay” in some jurisdictions. WHERE WE ARE MAKING
takes climate change into large companies will increasingly But there is still some distance to This would establish a critical PROGRESS 4
account. The transition be the norm, with their absence go. It’s time for every company link between responsibility,
to net-zero greenhouse either signalling an intention to to engage with this conversation. sustainability and accountability.
This progress report highlights KEY ISSUES IN 2020 5
gas emissions is both wind down the business over
coming years, or an assertion the imperative of starting with The new Climate Action 100+
an imperative of climate an appropriate level of ambition Net-Zero Company Benchmark
that the business is somehow
physics and a commitment separate from the society in by building net-zero and interim indicators give landmark clarity HOW WE ARE GOVERNED 6
in 126 countries. It is which it operates. The former targets that cover emissions and transparency on the asks of MARK CARNEY,
therefore vital that this may be logical, the latter would across the full business value companies by leading investors. UNITED NATIONS SPECIAL ENVOY FOR
chain. It also outlines how Yet, over time, investors won’t CLIMATE ACTION AND FINANCE, AND THE APPENDIX 7
strategic reset across be unforgiveable. UK PRIME MINISTER’S FINANCE ADVISER
companies need to do more just judge company transition
businesses sees the FOR COP26
to reconcile positive talk with plans. They too shall be judged
adoption of strategies to Investors are increasingly focused
action, including embedding on their own plans and alignment
on assessing how well companies
align with a net-zero future. are positioned for both climate
net-zero across all aspects of to net-zero. With a sustained
their strategy and investment focus on transition by companies
change and the net-zero
pipeline, and holding industry and financial institutions, we can
transition, by identifying which
associations to account for the build the net-zero future that our
companies will be on the right
climate lobbying carried out in citizens are demanding and that
and wrong side of climate history.
their name. future generations deserve.
Climate Action 100+ has been
leading this charge, providing
the momentum, stewardship and
9
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORT
FOREWORD FROM THE Many of the world’s largest corporate
emitters are setting ambitious targets
STEERING COMMITTEE to decarbonise by mid-century.
In our second progress A prosperous net-zero emissions Investors have been calling for WHO WE ARE 1
report on Climate Action world is increasingly within our consistent metrics to assess
100+, we are pleased to
reach: nine of the 15 largest company performance on climate CLIMATE ACTION 100+ Report introduction and highlights
STEERING COMMITTEE
economies have now set net-zero risk, which the newly released Highlights: 2020
company commitments
present an update on targets, and as this report shows, Climate Action 100+ Net-Zero Foreword from Mark Carney
the achievements of the many of the world’s largest Company Benchmark delivers. Foreword from the
initiative from October corporate emitters are setting The benchmark will provide Andrew Gray, Director ESG and Stewardship, Steering Committee
ambitious targets to decarbonise more clarity to companies on AustralianSuper Executive summary of report findings
2019 to November
by mid-century. Calls for a specific disclosures and targets
2020. This report also sustainable recovery have been and is a useful tool for investors
Anne Simpson, Managing Investment Director, HOW WE MEASURE PROGRESS 2
contains detail on the Board Governance and Sustainability, CalPERS
widespread as recognition grows to assess and compare company
recently released Climate that sparking fresh investments in performance. Climate Action Emma Herd, CEO, Investor Group on Climate HOW COMPANIES ARE
PROGRESSING 3
Action 100+ Net-Zero zero and low-carbon industries, 100+ announced the Net-Zero Change
Company Benchmark, technologies and infrastructure Company Benchmark to focus
can help countries stimulate their companies in August 2020 Fiona Reynolds, CEO, Principles for Responsible WHERE WE ARE MAKING
provides a summary of economies, drive growth and and are pleased to have had Investment PROGRESS 4
company progress at create new jobs. strong engagement on it to date
sector level, and sets out with 117 companies indicating Laetitia Tankwe, Advisor to President Jean-Pierre
The case for immediate action Costes, Groupe Caisse des Dépôts, Ircantec KEY ISSUES IN 2020 5
initiative priorities for the their support and intention to
is clear. Unprecedented wildfires disclose in accordance with the
coming year. in Australia, the United States, Mindy Lubber, CEO and President, Ceres
framework.
the Amazon and Siberia, record- HOW WE ARE GOVERNED 6
Rebecca Mikula Wright, Executive Director, Asia
There is no doubt that 2020 has breaking floods and typhoons in We thank our investor signatories, Investor Group on Climate Change
been a hugely challenging year Asia, a record-breaking Atlantic Climate Action 100+ staff at the
globally. Communities continue to hurricane season and the rapid coordinating investor networks, Seiji Kawazoe, Senior Stewardship Officer, APPENDIX 7
face fear and uncertainty because retreat of polar ice sheets and our funders, for continuing Sumitomo Mitsui Trust Asset Management
of the COVID-19 pandemic, an accelerating sea-level rise are all to support our efforts to address (SMTAM)
economic downturn with rising stark reminders that the physical climate change risk.
unemployment and financial impacts of climate change are Stephanie Maier, Director of Responsible
stress, and in some parts of the here. While we don’t have all of Investment, HSBC Global Asset Management
world, growing social unrest. the answers to decarbonisation Stephanie Pfeifer, CEO, Institutional Investors
Despite these challenges, climate yet, we know the time to increase Group on Climate Change
change has remained firmly our collective ambition is now.
on companies’ and investors’
agendas as an urgent issue.
10
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORTEXECUTIVE SUMMARY The 2020 Climate Action 100+ Progress
Report shows that while some companies
OF REPORT FINDINGS are taking steps to decarbonisation in
line with a net-zero emissions by 2050
trajectory, there is a long way to go.
The 2020 Climate Action Growth in signatories • Governance, including executive Company progress against Nearly half (43%) of companies WHO WE ARE 1
100+ Progress Report remuneration linked to climate selected indicators have set a net zero by 2050
targets. target or ambition in some form, Report introduction and highlights
provides an overall update Climate Action 100+ is growing.
The 160 companies2 engaged by which is an important signal Highlights: 2020
The initiative has now attracted • Just transition. company commitments
on the initiative and its 545 investor signatories, including
the Climate Action 100+ initiative to investors that companies Foreword from Mark Carney
activities, as well as an • Task Force on Climate related represent over 80% of global understand and are preparing for
notable new additions Blackrock Foreword from the
Financial Disclosures (TCFD) industrial emissions and are, as a
assessment of focus and State Street Global Asset the transition. However, only 10% Steering Committee
reporting, including scenario group and individually, critical to of focus companies have net-zero Executive summary of report findings
company progress at the Management – the first and third
analysis. progressing the global economy
largest asset managers in the targets that explicitly cover the
sector level against a series to net-zero emissions by 2050. companies’ most material scope
HOW WE MEASURE PROGRESS 2
world (respectively). Climate A subset of these indicators has
of benchmark indicators. Action 100+ signatory assets
This level of ambition is necessary 3 emissions.
been used to assess company according to the IPCC3 in order
under management now total performance at the sector-level HOW COMPANIES ARE
3
to hold global warming to 1.5°C Similarly, while more than half of PROGRESSING
$52 trillion. in this report. A full company- above pre-industrial levels, and focus companies (51%) have set
level assessment against all the to avoid the most catastrophic a short-term (to 2025) emissions
New approach to measuring WHERE WE ARE MAKING
indicators in the new benchmark effects of climate change. reduction target, and just under 4
company progress PROGRESS
is underway and will be released half (38%) have set a medium-
In 2020, the initiative developed in the form of company For this report, companies have term target (2026 to 2035),
the Climate Action 100+ Net scorecards in early 2021. been assessed against a subset these targets do not often cover KEY ISSUES IN 2020 5
Zero Company Benchmark, of the new Climate Action 100+ both the companies’ operational
It is recognised that for Net-Zero Company Benchmark
which will be used to publicly scope 1 and 2 emissions as well as
companies to improve indicators, including disclosure 6
benchmark focus companies. the most material upstream and HOW WE ARE GOVERNED
their performance against assessments provided by
The first company scorecards downstream scope 3 emissions.
these indicators as a region, Transition Pathway Initiative and
will be released in early 2021. The
actions led or incentivised by capital allocation assessments At a sector-level, indicators 7
Benchmark includes indicators APPENDIX
government and policymakers provided by Carbon Tracker assessing companies in the
which cover:
form an important part of Initiative and 2° Investing oil and gas, utilities and
• Net zero by 2050 ambition. the conversation. For many
1 The Climate Action 100+ Net-Zero
Initiative. transportation (autos) sectors
Company Benchmark will only assess • Targets and goals for companies engaged by the show gaps in companies’ planned
focus company greenhouse gas emission greenhouse gas (GHG) initiative, policy settings will be The report shows that while some capital allocation and technology
reduction targets against a well below 2°C emissions reduction in the short, key to driving the transition. companies are taking steps to mix. For example, despite nearly
climate scenario in the first assessment. In
the future these will be assessed against a medium and long-term and decarbonisation in line with a net- half (54%) of oil and gas focus
1.5°C climate scenario where available. whether targets align with a zero emissions by 2050 trajectory, companies having a net-zero
2 In November 2020, an additional 9 there is a long way to go.
companies were added and 2 companies 1.5°C climate scenario1. by 2050 target in some form,
removed from the Climate Action 100+
• Decarbonisation strategy. Carbon Tracker analysis shows
focus list. Reporting on progress of these
companies is not included in the scope of
that 194 of the new oil and gas
• Capital allocation alignment. projects sanctioned this year
this report.
3 See the IPCC Special Report on the impacts • Climate policy engagement. are misaligned with theEXECUTIVE SUMMARY OF
REPORT FINDINGS
The majority of oil and gas capital • Just transition and increasing Priorities ahead WHO WE ARE 1
expenditure (68%) assessed by investor expectations for
Carbon Tracker is also outside companies to appropriately In 2021, the initiative will focus on Report introduction and highlights
of this climate scenario. Carbon develop transition plans for several key priorities: Highlights: 2020
company commitments
Tracker analysis also shows workers and communities that • Company engagement on the Foreword from Mark Carney
only 26% of electric utility focus are best practice, reflect broad Climate Action 100+ Net-Zero Foreword from the
companies have coal phase out consultation, and are clearly Company Benchmark and the Steering Committee
plans aligned with the2
HOW WE MEASURE
PROGRESS
13
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORTHOW WE MEASURE PROGRESS
The Climate Action 100+ Disclosure assessments These additional third-party WHO WE ARE 1
Steering Committee and analyses, which correspond
The framework has ten indicators with company disclosures’ WHAT ARE THE KEY GOALS OF THE CLIMATE ACTION 1OO+ HOW WE MEASURE
supporting investor network 2
organisations have worked
that reflect the overall initiative relative to indicator six in the INITIATIVE? PROGRESS
goals. It will assess companies’ benchmark, will be included
alignment with specific points The Climate Action 100+ Net-Zero
to ensure the best data for upstream oil and gas Climate Action 100+ recognises that decarbonisation of the Company Benchmark
and research are available including ambition to align with companies, electric utilities global economy is complex and will require unique strategies Disclosure indicators
the Paris Agreement goal, GHG (coal and gas generation and approaches across different businesses, regions and sectors.
to investors engaging with emissions reduction targets, However, investors agree there should be a common global
Capital allocation indicators
assets) and automotive
companies, and that there decarbonisation strategy, capital companies. Similar analyses for engagement agenda seeking commitments from boards and senior HOW COMPANIES ARE
is sufficient information alignment, climate policy support, PROGRESSING 3
companies in other sectors will management to:
to assess the alignment of governance, just transition and be added in the future.
companies with investor disclosure. Transition Pathway WHERE WE ARE MAKING
Initiative (TPI) has been selected The Climate Action 100+ PROGRESS 4
expectations and initiative to conduct research and analysis Technical Advisory Group,
goals. on companies’ disclosed comprised of Carbon Tracker
information and based on this, Initiative (CTI), InfluenceMap KEY ISSUES IN 2020 5
During 2020 the initiative score each company. (IM), Transition Pathway IMPROVE REDUCE GHG PROVIDE ENHANCED
developed the Climate Action Initiative (TPI) and 2°
Capital allocation GOVERNANCE OF EMISSIONS IN LINE DISCLOSURE HOW WE ARE GOVERNED 6
100+ Net-Zero Company Investing Initiative (2DII) has
Benchmark. It draws upon two assessments been central to the overall CLIMATE RISKS AND WITH GOALS OF THE ALIGNED WITH THE
distinct analytical methodologies
Carbon Tracker Initiative and development of the new OPPORTUNITIES PARIS AGREEMENT RECOMMENDATIONS
and data sets, each designed to Benchmark and the various APPENDIX 7
2° Investing Initiative will also OF THE TASK FORCE
evaluate company performance approaches used to assess
and provide greater transparency
analyse companies’ capital
focus company alignment. ON CLIMATE-RELATED
expenditures (CAPEX) and FINANCIAL DISCLOSURE
for investors.
output relative to a range of
climate change scenarios to (TCFD)
give investors additional insights
on the relative adequacy and
alignment of company action
with the Paris Agreement goals.
14
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORTTHE CLIMATE ACTION 1OO+ NET-ZERO
COMPANY BENCHMARK
The Climate Action BENCHMARK PURPOSE • Engagement advancement:
Focus company assessment
WHO WE ARE 1
100+ Net-Zero Company
results will inform advancement HOW WE MEASURE
Benchmark was developed Climate Action 100+ seeks to decisions including voting, PROGRESS
2
during 2020 through focus investor action on the for Climate Action 100+ focus
The Climate Action 100+ Net-Zero
collaboration and feedback world’s largest GHG emitters, companies. Company Benchmark
with almost 50 signatory including emissions across the Disclosure indicators
value chain, and companies that • Decision making: The results
investors, investor network present the greatest climate- of company assessments will Capital allocation indicators
experts, leading climate related risk to investors’ portfolios be used by signatories to
HOW COMPANIES ARE
research and data NGOs or that have a significant inform their actions during PROGRESSING 3
year five of the initiative (the
and corporate stakeholders opportunity to drive a broader
original time horizon for Climate
to establish indicators net-zero economy transition. The WHERE WE ARE MAKING
Climate Action 100+ Net-Zero Action 100+) particularly PROGRESS 4
that are robust, fair and Company Benchmark supports with unresponsive or poor
applicable to local markets this objective by providing performing firms.
and across sectors. investors with a tool that is • Initiative transparency KEY ISSUES IN 2020 5
both transparent and robust and reporting: Company
to facilitate focus company assessment results will be a key
input for the initiative’s progress HOW WE ARE GOVERNED 6
engagement. This framework
may be used for: reports and used to assess
• Ongoing engagement: the overall effectiveness of the
initiative. APPENDIX 7
The Benchmark resets and
clarifies expectations for what • Assessing alignment or
companies need to do to align misalignment: Between
with the goals of the initiative companies’ stated ambitions
and provides a mechanism for and their planned investments,
tracking progress. activities and projects.
15
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORTDISCLOSURE INDICATORS
The disclosure indicators WHO WE ARE 1
DISCLOSURE INDICATORS DATA PROVIDER
rely on companies’ publicly
HOW WE MEASURE
disclosed information. 1 NET-ZERO GHG EMISSIONS BY 2050 (OR SOONER) AMBITION1 PROGRESS
2
There are ten overall
1.1 The company has set an ambition to achieve net-zero GHG emissions by 2050 or sooner. TPI The Climate Action 100+ Net-Zero
indicators, each supported Company Benchmark
by one or more sub- 1.1a
The company has made a qualitative net-zero GHG emissions ambition statement that explicitly includes at least 95%
TPI
Disclosure indicators
indicators. of scope 1 and 2. Capital allocation indicators
The company’s net-zero GHG emissions target covers the most relevant scope 3 GHG emissions categories for the
1.1b TPI HOW COMPANIES ARE
Transition Pathway Initiative (TPI) company’s sector, where applicable. PROGRESSING 3
supported by its research and 2 LONG-TERM (2036 to 2050) GHG REDUCTION TARGET
data providers the Grantham
WHERE WE ARE MAKING
Research Institute on Climate The company has set a long-term (2036 to 2050) target for reducing its GHG emissions on a clearly defined scope PROGRESS 4
2.1 TPI
Change and the Environment at of emissions.
the London School of Economics The long-term (2036 to 2050) GHG reduction target covers at least 95% of scope 1 & 2 emissions and most relevant scope
(LSE) and FTSE Russell, has 2.2 TPI KEY ISSUES IN 2020 5
3 emissions (where applicable).
been appointed as the research
organisation for delivering the 2.2a The company has specified that this target covers at least 95% of total scope 1 and 2 emissions. TPI
company data for the disclosure HOW WE ARE GOVERNED 6
If the company has set a scope 3 GHG emissions target, it covers the most relevant scope 3 emissions categories for the
indicators within the Climate 2.2b company’s sector (for applicable sectors), and the company has published the methodology used to establish any scope 3 TPI
Action 100+ Net-Zero Company target.
Benchmark. Company disclosed, APPENDIX 7
The long-term target is aligned with a trajectory to achieve the Paris Agreement goal of limiting global temperature increase
public information will be
2.3 to 1.5°C with low or no overshoot (equivalent to IPCC Special Report on 1.5°2 Celsius pathway P1 or net-zero emissions by TPI
collected by TPI and used to
2050).3
assess and score each focus
company against the disclosure 3 MEDIUM-TERM (2026 TO 2035) GHG REDUCTION TARGET
indicators. The results of this
The company has set a medium-term (2026 to 2035) target for reducing its GHG emissions on a clearly defined scope
research and scoring will be 3.1 TPI
of emissions.
made available in early 2021 on
the Climate Action 100+ website. The medium-term (2026 to 2035) GHG reduction target covers at least 95% of scope 1 and 2 emissions and most relevant
3.2 TPI
In this report, a subset of the scope 3 emissions (where applicable).
disclosure indicators is reported 3.2a The company has specified that this target covers at least 95% of total scope 1 and 2 emissions. TPI
on at the sector level.
16
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORTDISCLOSURE INDICATORS
WHO WE ARE 1
Company disclosed, DISCLOSURE INDICATORS DATA PROVIDER
public information will If the company has set a scope 3 GHG emissions target, it covers the most relevant scope 3 emissions categories for the HOW WE MEASURE
PROGRESS
2
be collected by TPI 3.2b company’s sector (for applicable sectors), and the company has published the methodology used to establish any scope
3 target.
TPI
The Climate Action 100+ Net-Zero
and used to assess and The medium-term target is aligned with a trajectory to achieve the Paris Agreement goal of limiting global temperature
Company Benchmark
score each focus
Disclosure indicators
3.3 increase to 1.5°C with low or no overshoot (equivalent to the IPCC Special Report on 1.5°C2 pathway P1 or net-zero emissions TPI Capital allocation indicators
company against the by 2050).3
disclosure indicators. 4 SHORT-TERM (2020 TO 2025) GHG REDUCTION TARGET HOW COMPANIES ARE
PROGRESSING 3
The results of this 4.1
The company has set a short-term (2020 to 2025) target for reducing its GHG emissions on a clearly defined scope
TPI
of emissions.
research and scoring The short-term (2020 to 2025) GHG reduction target covers more than 95% of scope 1 and 2 emissions, and relevant scope
WHERE WE ARE MAKING
PROGRESS 4
will be made available 4.2
3 emissions (where applicable).
TPI
in early 2021. 4.2a The company has specified that this target covers at least 95% of total scope 1 and 2 emissions. TPI KEY ISSUES IN 2020 5
If the company has set a scope 3 GHG emissions target, it covers the most relevant scope 3 emissions categories for the
4.2b company’s sector (for applicable sectors), and the company has published the methodology used to establish any scope 3 TPI HOW WE ARE GOVERNED 6
target.
The short-term target is aligned with a trajectory to achieve the Paris Agreement goal of limiting global temperature increase
4.3 to 1.5°C2 with low or no overshoot (equivalent to IPCC Special Report on 1.5° Celsius pathway P1 or net-zero emissions by TPI APPENDIX 7
2050).3
5 DECARBONISATION STRATEGY
5.1 The company has a decarbonisation strategy to meet its long, medium and short-term GHG reduction targets.4 TPI
The company identifies the set of actions it intends to take to achieve its GHG reduction targets over the targeted
5.1a timeframe. These measures clearly refer to the main sources of its GHG emissions, including Scope 3 emissions TPI
where applicable.
The company quantifies key elements of this strategy with respect to the major sources of its emissions, including scope 3
5.1b emissions where applicable (eg. changing technology or product mix, supply chain measures, research and development TPI
spending).
The company’s decarbonisation strategy includes a commitment to ‘green revenues’ from low carbon products and
5.2 TPI
services.5
17
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORTDISCLOSURE INDICATORS
WHO WE ARE 1
DISCLOSURE INDICATORS DATA PROVIDER
HOW WE MEASURE 2
5.2a The company already generates ‘green revenues’ and discloses their share in overall sales. TPI PROGRESS
The company has set a target to increase the share of green revenues in its overall sales or discloses green revenue share The Climate Action 100+ Net-Zero
5.2b TPI Company Benchmark
that is above sector average.
Disclosure indicators
6 CAPITAL ALLOCATION ALIGNMENT6 Capital allocation indicators
6.1 The company is working to decarbonise its future capital expenditures. TPI HOW COMPANIES ARE
PROGRESSING 3
6.1a The company explicitly commits to align future capital expenditures with its long-term GHG reduction target(s). TPI
The company explicitly commits to align future capital expenditures with the Paris Agreement’s objective of limiting global WHERE WE ARE MAKING
6.1b TPI PROGRESS 4
warming to 1.5° C.
The company discloses the methodology used to determine the Paris Agreement alignment of its future
6.2 TPI
capital expenditures. KEY ISSUES IN 2020 5
The company discloses the methodology it uses to align its future capital expenditure with its decarbonisation goals,
6.2a TPI
including key assumptions and key performance indicators (KPIs).
HOW WE ARE GOVERNED 6
The methodology quantifies key outcomes, including the share of its future capital expenditures that are aligned with a 1.5°
6.2b TPI
Celsius scenario, and the year in which capital expenditures in carbon intensive assets will peak.
7 CLIMATE POLICY ENGAGEMENT7 APPENDIX 7
The company has a Paris-Agreement-aligned climate lobbying position and all of its direct lobbying activities are aligned
7.1 TPI
with this.
The company has a specific commitment/position statement to conduct all of its lobbying in line with the goals of the
7.1a TPI
Paris Agreement.
7.1b The company lists its climate-related lobbying activities, e.g. meetings, policy submissions, etc. TPI
The company has Paris Agreement-aligned lobbying expectations for its trade associations, and it discloses its trade
7.2 TPI
association memberships.
The company has a specific commitment to ensure that the trade associations the company is a member of lobby in line
7.2a TPI
with the goals of the Paris Agreement.
7.2b The company discloses its trade associations memberships. TPI
7.3 The company has a process to ensure its trade associations lobby in accordance with the Paris Agreement. TPI
18
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORTDISCLOSURE INDICATORS
WHO WE ARE 1
DISCLOSURE INDICATORS DATA PROVIDER
The company conducts and published a review of its trade associations’ climate positions/alignment with the Paris HOW WE MEASURE 2
7.3a TPI PROGRESS
Agreement.
The Climate Action 100+ Net-Zero
7.3b The company explains what actions it took as a result of this review. TPI Company Benchmark
Disclosure indicators
8 CLIMATE GOVERNANCE Capital allocation indicators
8.1 The company’s board has clear oversight of climate change. TPI HOW COMPANIES ARE
PROGRESSING 3
The company discloses evidence of board or board committee oversight of the management of climate change risks via at
least one of the following:
WHERE WE ARE MAKING
• There is a C-suite executive or member of executive committee who is explicitly responsible for climate change PROGRESS 4
8.1a (not just sustainability performance) and that executive reports to the board or a board level committee, and/or; TPI
• The CEO is responsible for climate change AND he/she reports to the board on climate change issues, and/or;
• There is a committee (not necessarily a board-level committee) responsible for climate change (not just sustainability KEY ISSUES IN 2020 5
performance) and that committee reports to the board or a board-level committee.
The company has named a position at the board level with responsibility for climate change, via one of the following: HOW WE ARE GOVERNED 6
8.1b • A board position with explicit responsibility for climate change, or; TPI
• The CEO is identified as responsible for climate change, if he/she sits on the board. APPENDIX 7
8.2 The company’s executive remuneration scheme incorporates climate change performance elements, TPI
The company's CEO and/or at least one other senior executive’s remuneration arrangements specifically incorporate
8.2a climate change performance as a KPI determining performance-linked compensation (reference to ‘ESG’ or ‘sustainability TPI
performance’ are insufficient).
The company's CEO and/or at least one other senior executive’s remuneration arrangements incorporate progress towards
8.2b achieving the company’s GHG reduction targets as a KPI determining performance linked compensation (requires meeting TPI
relevant target indicators 2, 3, and/or 4).
8.3 The board has sufficient capabilities to assess and manage climate-related risks and opportunities. TPI
19
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORTDISCLOSURE INDICATORS
WHO WE ARE 1
DISCLOSURE INDICATORS DATA PROVIDER
The company has assessed its board competencies with respect to managing climate risks and discloses the results of HOW WE MEASURE 2
8.3a TPI PROGRESS
the assessment.
The company provides details on the criteria it uses to assess the board competencies with respect to managing climate The Climate Action 100+ Net-Zero
8.3b TPI Company Benchmark
risks and/or the measures it is taking to enhance these competencies. Disclosure indicators
9 JUST TRANSITION8 Capital allocation indicators
9.1 The company considers the impacts from transitioning to a lower-carbon business model on its workers and communities. TPI HOW COMPANIES ARE
PROGRESSING 3
10 TCFD DISCLOSURE
WHERE WE ARE MAKING
The company has committed to implement the recommendations of the Taskforce on Climate-related Financial Disclosures PROGRESS 4
10.1 TPI
(TCFD).
The company explicitly commits to align its disclosures with the TCFD recommendations OR it is a listed as a supporter on
10.a TPI KEY ISSUES IN 2020 5
the TCFD website.
10.1b The company explicitly sign-posts TCFD aligned disclosures in its annual reporting or publishes them in a TCFD report. TPI
HOW WE ARE GOVERNED 6
10.2 The company employs climate-scenario planning to test its strategic and operational resilience. TPI
10.2a The company has conducted a climate-related scenario analysis including quantitative elements and disclosed its results. TPI
APPENDIX 7
The quantitative scenario analysis explicitly includes a 1.5° Celsius scenario, covers the entire company, discloses key
10.2b TPI
assumptions and variables used, and reports on the key risks and opportunities identified.
1 The necessary timeframe for companies to achieve net-zero GHG emissions differs depending on the sector. Some companies in certain sectors, such as electric utilities, may be expected to set more
ambitious goals and achieve net-zero GHG emissions by 2040 or even sooner. Future iterations of the Net-Zero Company Benchmark will reflect these sector differences.
2 Note that sub-indicators 2.3, 3.3 and 4.3 will be based on Transition Pathway Initiative’s Carbon Performance methodology, which applies the Sectoral Decarbonisation Approach (SDA), a science-
based method for companies to set GHG reduction targets necessary to stay within a 2°C temperature rise above pre-industrial levels.
3 In the absence of a credible 1.5°C scenario, companies will be measured against a below 2°C scenario. Company assessments will be adjusted when a 1.5°C scenario becomes available, most likely in
the next reporting cycle.
4 The use of offsetting or carbon credits should be avoided and limited, if at all applied. Offsetting or ‘carbon dioxide removal’ should not be used by companies operating in sectors where viable
decarbonisation technologies exist. For example, offsetting would not be considered credible if used to offset emissions for a coal-fired power plant because viable alternatives exist to coal-fired
power plants.
5 The assessment will leverage the EU’s Green Taxonomy criteria on ‘turnover’ (or revenues) for companies headquartered in the European Union. Companies headquartered outside of the EU will not
be assessed in the first quarter 2021 iteration of the framework. The criteria used to assess non-EU companies will be an ongoing area of development as part of broader discussions on the use of
green revenue classification systems and regional taxonomies.
6 Related to Indicator 6, there will be an additional set of Capital Allocation Indicators in the company scorecards to be provided by Carbon Tracker (CT) and 2° Investing Initiative (2Dii). CT and 2Dii will
analyse recent focus company CAPEX and output relative to a range of alternative climate change scenarios to give investors additional insights related to company capital allocation plans. Initially,
these will apply to focus companies in the upstream oil and gas, electric utilities and auto sectors.
7 Note that current benchmark indicators, in particular Indicator #7 on Climate Policy Engagement are intended to be enhanced and will evolve over time with an update ready in advance of the next
scoring cycle.
8 This indicator will be further developed, and companies will not be assessed in the 2021 company scorecards.
20
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORTCAPITAL ALLOCATION INDICATORS
The capital allocation WHO WE ARE 1
indicators are designed to Upstream oil and gas companies
complement the disclosure CAPITAL ALLOCATION HOW WE MEASURE 2
indicators by providing INDICATORS INDICATOR DATA PROVIDER PROGRESS
further insights to investors
The capital allocation indicators How many conventional and unconventional oil and gas projects were sanctioned by CTI The Climate Action 100+ Net-Zero
regarding the adequacy of focus companies in 2019 that are outside of the IEA B2DS? Company Benchmark
companies’ capital allocation presented in this report are a Disclosure indicators
plans, and relative alignment subset of indicators developed by If the company provided impairment price assumptions CTI
Capital allocation indicators
CTI and 2DII2. - are they flat, declining or increasing?
with the company’s stated
emissions reduction targets. Percentage of total potential capital expenditure (below STEPS cap) that is inside B2DS, CTI HOW COMPANIES ARE
These indicators rely on a number for oil, gas and total. PROGRESSING 3
These indicators are provided of climate scenarios3 provided by
by Carbon Tracker (CTI) and Percentage of total potential capital expenditure (below STEPS cap) outside B2DS, for oil CTI
the International Energy Agency’s and gas.
2° Investing Initiative (2DII) (IEA) to assess companies, WHERE WE ARE MAKING
4
PROGRESS
and currently apply to a including the:
subset of Climate Action 100+ Electric utilities
companies1. • IEA’s Beyond 2 Degrees
Scenario (B2DS) INDICATOR DATA PROVIDER KEY ISSUES IN 2020 5
• IEA’s Stated Policies Scenario Alignment of company’s current and future capital stock and capital expenditures with 2DII
(STEPS) climate scenarios. HOW WE ARE GOVERNED 6
• IEA’s Sustainable Development Company’s future (2025) technology mix compared to the market average. 2DII
Scenario (SDS)
Has the company announced a full phase-out of coal units by 2040 that is consistent with CTI
APPENDIX 7
CTI’s interpretation of the IEA’s B2DS scenario?
Has the company announced a full phase-out of gas units by 2040 that is consistent with CTI
CTI’s interpretation of the IEA’s B2DS scenario?
Automotive companies (transportation sector)
INDICATOR DATA PROVIDER
Alignment of company’s current and future capital stock and capital expenditures with 2DII
climate scenarios.
Company’s future (2025) technology mix compared to the market average. 2DII
1 CTI indicators cover upstream oil and gas companies and electric utilities, and 2DII indicators cover automotive companies and electric utilities.
2 For more detail on the analysis available from 2 Degrees Investing Initiative on Climate Action 100+ focus companies visit: https://2degrees-investing.org/resource/pacta-company-profiles-
engaging-with-companies-to-pursue-climate-action/ For more detail on the analysis available from Carbon Tracker on Climate Action 100+ focus companies, visit https://carbontracker.org/reports/
making-it-mainstream-ca100-power-utility-profiles/
3 Climate Action 100+ intends to apply a 1.5 degree scenario that requires net-zero emissions by 2050 to assess companies. In October 2020 the IEA released a net-zero emissions by 2050 scenario
in line with the pathways used by the Intergovernmental Panel on Climate Change for the Special Report on Global Warming of 1.5 °C (IPCC SR1.5). The IEA has not yet provided their net-zero
analysis at a more detailed, sectoral level – a requirement to assess companies’ alignment across a range of sectors. 21
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORTHOW WE MEASURE PROGRESS
• Expanded sector alignment • Expanded green revenue WHO WE ARE 1
NEXT STEPS FOR THE methodologies: At present indicator: The current indicator
HOW HAS THE NEW BENCHMARKING FRAMEWORK
NET-ZERO COMPANY there are not sufficient
methodologies available to
5.2 applies the European
Union’s (EU) Green Taxonomy BEEN COMMUNICATED TO FOCUS COMPANIES?
HOW WE MEASURE
PROGRESS
2
BENCHMARK assess GHG target alignment for criteria on ‘turnover’ (or
In September 2020 the Net-Zero Company Benchmark was The Climate Action 100+ Net-Zero
companies in certain sectors, revenues) for companies Company Benchmark
including chemicals, consumer headquartered in the EU). Thus, formally introduced to focus companies in a letter sent to the Disclosure indicators
After its launch and the first Chief Executive Officer, Board Chair or relevant focus company
company assessment cycle is goods, other industrials and companies headquartered Capital allocation indicators
services. Climate Action 100+ outside of the EU are not being contacts. Acknowledging that many companies operate in
completed, the Net-Zero Company jurisdictions where their governments are expected to ratchet
Benchmark will continue to and TPI will look to develop assessed in the 2021 iteration HOW COMPANIES ARE
3
these for future iterations of of the benchmark. Future up their Nationally Determined Contributions (NDCs) that are PROGRESSING
be updated and revised based currently not on track to meet 1.5°C or well below 2°C, the letter
on investor priorities and the the benchmark. iterations of this indicator will
assess non-EU companies using invited companies to: WHERE WE ARE MAKING
latest available information • Climate accounting: A top PROGRESS 4
and methodologies to assess priority is the development appropriate green revenue 1. Work towards providing disclosures consistent with the new
companies’ climate transition of a new disclosure indicator classification systems and Climate Action 100+ Net-Zero Company Benchmark, which
preparedness. In particular, to assess whether or not a regional taxonomies where includes disclosure against TCFD, to enable investors to assess KEY ISSUES IN 2020 5
there are five key topics which company’s accounting practices available. the company’s potential for long-term value;
are top priorities for inclusion in and related disclosures reflect It is expected that these
future iterations of the Net-Zero consideration of transition risk 2. Confirm if the company will outline strategies that go HOW WE ARE GOVERNED 6
additional methodologies and beyond current NDCs, and/or implement appropriate capital
Company Benchmark: relative to a range of possible indicators will be developed in
climate scenarios. investment decisions to achieve net-zero emissions by 2050
• 1.5°C Scenario: Given the time for the 2022 benchmark. or sooner across all material GHG emissions, and establish
absence of a 1.5°C IEA • Just transition: While APPENDIX 7
medium-term targets consistent with a global reduction in
scenario, Climate Action 100+ companies will not be assessed emissions of 45% by 2030 relative to 2010 levels;1
and its research provider on just transition in 2021,
Transition Pathway Initiative Climate Action 100+ will work 3. Join investors working through Climate Action 100+ in the
117
will assess available options with leading Just Transition development and implementation of net-zero transition
and start to develop alternative advocates and experts to action plans to provide pathways toward achieving net-zero
methodologies as required. develop appropriate disclosure emissions for the company’s sector or value chain overall.
requirements and a related
scoring approach to be applied FOCUS COMPANIES PROVIDED
during the next reporting cycle. A FORMAL RESPONSE TO THE
LETTER
1 The IPCC Special Report on Global Warming of 1.5°C published in October 2018 found
that limiting global warming to 1.5°C would require 'rapid and far-reaching' transitions
in land, energy, industry, buildings, transport, and cities. Global net human-caused
emissions of carbon dioxide (CO2) would need to fall by about 45% from 2010 levels
by 2030, reaching ‘net-zero’ around 2050. The 2030 GHG emissions reduction targets
required to achieve this outcome vary by sector. For more information, see here.
22
CLIMATE ACTION 1OO+ 2O2O PROGRESS REPORTYou can also read
