Investors participating in Climate Action 100+ recognise that decarbonisation of the global economy is complex and will require unique strategies and approaches across different businesses, regions and sectors. However, signatories have agreed there should be a broad common engagement agenda across sectors, regions and business types. This consists of seeking commitments from boards and senior management to:
- Implement a strong governance framework which clearly articulates the board’s accountability and oversight of climate change risk;
- Take action to reduce greenhouse gas emissions across the value chain, consistent with the Paris Agreement’s goal of limiting global average temperature increase to well below two degrees Celsius above pre-industrial levels, aiming for 1.5 degrees. Notably, this implies the need to move towards net-zero emissions by 2050 or sooner; and
- Provide enhanced corporate disclosure in line with the final recommendations of the Task Force on Climate‑related Financial Disclosures (TCFD) and sector-specific Global Investor Coalition on Climate Change (GIC) Investor Expectations on Climate Change guidelines (when applicable), to enable investors to assess the robustness of companies’ business plans against a range of climate scenarios, including well below two degrees and improve investment decision-making.
An important component of company commitments on climate change is the formation of comprehensive business strategies that fully align with the goals of the Paris Agreement and reaching net-zero emissions by 2050 or sooner. These strategies would encompass and actualise the three asks of the initiative in core business decisions of a focus company.
Supporting this high-level agenda, investors are identifying and communicating with companies on more detailed company-specific expectations.