· Data and insights for landmark new benchmark provided by TPI as part of its partnership with Climate Action 100+ initiative.
· Evolving tool provides the 575 investor signatories to CA100+, representing $54 trillion in assets, with a robust engagement agenda to drive higher corporate ambition and transparency.
(London, 22 MARCH, 2021). Climate Action 100+, the world’s largest investor initiative on climate, has released its first ever assessment of the biggest corporate greenhouse gas emitters in their efforts to transition to net zero businesses – based on based on disclosure data and analysis provided by the
Transition Pathway Initiative (TPI).
The Climate Action 100+ Net-Zero Company Benchmark (the Benchmark) was developed during 2020 with TPI as the leading partner. TPI and other partners worked with Climate Action 100+ to provide disclosure indicators used by the initiative to assess how rapidly high-emitting companies are transitioning to a low carbon business model, and the governance processes these companies are putting in place to deliver on that goal. TPI – in conjunction with its partners the Grantham Research Institute at the London School of Economics, FTSE Russell and Chronos Sustainability – then managed the process of collecting and assessing the data, and oversaw the company review and feedback process to develop the final set of company assessments.
Dr Rory Sullivan, Chief Technical Advisor to TPI and CEO of Chronos Sustainability, who managed the data delivery process on behalf of TPI, said:
“The CA100+ initiative deserves enormous credit for adopting this benchmark. It will enable investors to see whether 159 of the world’s highest-emitting companies are aligning with a pathway to net zero emissions by 2050. TPI is delighted to support CA100+ by providing its comprehensive, rigorous and impartialdata to support the critical engagements that CA100+ investors are undertaking. The CA100+ Benchmark will enable investors to dig deep into company strategies, capital expenditures and governance processes and to see how corporate net zero commitments are being translated into action.”
Adam Matthews, Co-Chair of TPI and Chief Responsible Investment Officer (CRIO) Church of England Pensions Board said:
“This is a pivotal moment at the beginning of the transition decade. Through this Climate Action 100+ Net Zero Benchmark TPI has been able to bring into sharp focus the challenge that lies ahead for investor engagement. It is clear that as a result of engagement, corporate commitments exist where they did not before, but they are not all equal in ambition and scope. Change is occurring and we are entering a more complex stage in corporate engagement where new data points are needed to be able to judge corporate behavior and strategy.”
Arne Staal, CEO of FTSE Russell, said:
“Transitioning to a net zero economy and achieving the goals of the Paris Agreement poses a significant challenge, requiring companies to take urgent and substantive action. Ahead of COP 26 in the UK later this year, the Climate Action 100+ assessments launched today provide both investors and companies with a transparent and consistent approach to help track corporate ambition and progress towards Net Zero. FTSE Russell is delighted to have partnered with Climate Action 100+, TPI and the investors they represent in developing and carrying out these assessments.”
Using publicly disclosed data (e.g. annual reports, sustainability reports, press releases, CDP disclosures) the benchmark assesses focus companies across 10 key indicators. Each indicator consists of a number of sub-indicators and metrics to promote in-depth analysis of the crucial components of corporate climate ambition on emissions reductions, governance and disclosure. The ten indicators are:
1. Net-zero greenhouse gas (GHG) emissions by 2050 (or sooner) ambition
2. Long-term (2036-2050) GHG reduction target(s)
3. Medium-term (2026-2035) GHG reduction target(s)
4. Short-term (up to 2025) GHG reduction target(s)
5. Decarbonisation strategy
6. Capital allocation alignment
7. Climate policy engagement
8. Climate Governance
9. Just Transition (not assessed in 2021)
10. TCFD disclosure
On behalf of Climate Action 100+, TPI will produce additional sector analyses based on the company assessments in the coming months.
- Ends –
Notes to editor
For more information please contact: Mike Weber, ESG Communications:
+44 7932 577 755 | e: mike@esgcomms.com About TPI:
The Transition Pathway Initiative (TPI) is a global initiative led by asset owners and supported by asset managers. Aimed at investors and free to use, it assesses companies’ preparedness for the transition to a low-carbon economy, supporting efforts to address climate change. It is backed by over 90 investors with over $23 trillion of combined assets under management or assets under advice. More information:
www.transitionpathwayinitiative.org
About Climate Action 100+
Climate Action 100+ is an investor initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. More than 575 investors with more than $54 trillion in assets collectively under management are engaging companies on improving governance, curbing emissions and strengthening climate-related financial disclosures. The companies include 100 ‘systemically important emitters’, accounting for two-thirds of annual global industrial emissions, alongside more than 60 others with significant opportunity to drive the clean energy transition. Launched in December 2017, Climate Action 100+ is coordinated by five partner organisations: Asia Investor Group on Climate Change (
AIGCC); Ceres (
Ceres); Investor Group on Climate Change (
IGCC); Institutional Investors Group on Climate Change (
IIGCC) and Principles for Responsible Investment (
PRI).
The Net Zero Company Benchmark was developed in 2020 through collaboration and feedback with nearly 50 Climate Action 100+ investor signatories, experts from investor networks at AIGCC, Ceres, IIGCC, IGCC and PRI, leading research and data organizations, and other corporate stakeholders to establish assessment indicators that are robust, fair, and applicable to regional markets and across sectors. For more detail on the on the indicators, data sources and company assessment methodologies, go to:
www.climateaction100.org/progress/net-zero-company-benchmark/
About Chronos Sustainability
Chronos Sustainability was established in 2017 with the objective of delivering transformative, systemic change in the social and environmental performance of key industry sectors through expert analysis of complex systems and effective multi-stakeholder partnerships. Chronos works extensively with global investors and global investor networks to build their understanding of the investment implications of sustainability related issues, developing tools and strategies to enable them to build sustainability into their investment research and engagement. For more information visit
www.chronossustainability.com and @ChronosSustain.
About Grantham Research Institute
The Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science (LSE) is the Transition Pathway Initiative’s academic partner. Established in 2008, it is a world-leading centre for policy-relevant research on climate change and its impact on the environment. Its purpose is to increase knowledge and understanding in this area, promote better informed decision-making on the topic, and educate and train new generations of researchers through its undergraduate and postgraduate programmes.
About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally. FTSE Russell has pioneered sustainable investment index solutions for over two decades and its products based on transparent, rules-based methodologies are used by investors around world. FTSE Russell is part of the London Stock Exchange Group (LSEG).
