Net Zero Company Benchmark Update

Interim Benchmark assessments have been published for all focus companies. 

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COMPANY ASSESSMENT

Constellation

ABOUT THE COMPANY ASSESSMENTS

The Net Zero Company Benchmark assesses the performance of focus companies against the Initiative’s three high-level goals: reducing greenhouse gas emissions, improving governance, and strengthening climate-related financial disclosures. The Benchmark contains two types of analyses, a Disclosure Framework and Alignment Assessments, which complement each other and provide insight into a company’s net zero emissions transition.  

By accessing these assessments, you agree to be bound by the data usage terms and conditions. For more information on data collection and feedback, see the review and redress process. 

EXPLORE THE ASSESSMENTS

1.1
The company has set an ambition to achieve net zero GHG emissions by 2050 or sooner.
a
The company has made a qualitative net zero GHG emissions ambition statement that explicitly includes at least 95% of its Scope 1 and 2 emissions.
b
The company’s net zero GHG emissions ambition covers the most relevant Scope 3 GHG emissions categories for the company’s sector, where applicable.

2.1
The company has set a target for reducing its GHG emissions by between 2036 and 2050 on a clearly defined scope of emissions.
2.2
The long-term (2036 to 2050) GHG reduction target covers at least 95% of Scope 1 & 2 emissions and the most relevant Scope 3 emissions (where applicable).
a
The company has specified that this target covers at least 95% of its total Scope 1 and 2 emissions.
b
If the company has set a Scope 3 GHG emissions target, it covers the most relevant Scope 3 emissions categories for the company’s sector (for applicable sectors), and the company has published the methodology used to establish any Scope 3 target.
2.3
The target (or, in the absence of a target, the company’s latest disclosed GHG emissions intensity) is aligned with the goal of limiting global warming to 1.5°C.

3.1
The company has set a target for reducing its GHG emissions by between 2026 and 2035 on a clearly defined scope of emissions.
3.2
The medium-term (2026 to 2035) GHG reduction target covers at least 95% of Scope 1 & 2 emissions and the most relevant Scope 3 emissions (where applicable).
a
The company has specified that this target covers at least 95% of its total Scope 1 and 2 emissions.
b
If the company has set a Scope 3 GHG emissions target, it covers the most relevant Scope 3 emissions categories for the company’s sector (for applicable sectors), and the company has published the methodology used to establish any Scope 3 target.
3.3
The target (or, in the absence of a target, the company’s latest disclosed GHG emissions intensity) is aligned with the goal of limiting global warming to 1.5°C.

4.1
The company has set a target for reducing its GHG emissions up to 2025 on a clearly defined scope of emissions.
4.2
The short-term (up to 2025) GHG reduction target covers at least 95% of Scope 1 and 2 emissions and the most relevant Scope 3 emissions (where applicable).
a
The company has specified that this target covers at least 95% of its total Scope 1 and 2 emissions.
b
If the company has set a Scope 3 GHG emissions target, it covers the most relevant Scope 3 emissions categories for the company’s sector (for applicable sectors), and the company has published the methodology used to establish any Scope 3 target.
4.3
The target (or, in the absence of a target, the company’s latest disclosed GHG emissions intensity) is aligned with the goal of limiting global warming to 1.5°C.

5.1
The company has a decarbonisation strategy that explains how it intends to meet its long and medium-term GHG reduction targets.
a
The company identifies the set of actions it intends to take to achieve its GHG reduction targets over the targeted timeframe. These measures clearly refer to the main sources of its GHG emissions, including Scope 3 emissions where applicable.
b
The company quantifies key elements of this strategy with respect to the major sources of its emissions, including Scope 3 emissions where applicable.
5.2
The company’s decarbonisation strategy (target delivery) specifies the role of ‘green revenues’ from low carbon products and services.
a
The company already generates ‘green revenues’ and discloses their share in overall sales.
b
The company has set a target to increase the share of ‘green revenues’ in its overall sales OR discloses the ‘green revenue’ share that is above sector average.

6.1
The company is working to decarbonise its capital expenditures.
a
The company explicitly commits to align its capital expenditure plans with its long-term GHG reduction target OR to phase out planned expenditure in unabated carbon intensive assets or products.
b
The company explicitly commits to align its capital expenditure plans with the Paris Agreement’s objective of limiting global warming to 1.5° Celsius AND to phase out investment in unabated carbon intensive assets or products.
6.2
The company discloses the methodology used to determine the Paris alignment of its future capital expenditures.
a
The company discloses the methodology and criteria it uses to assess the alignment of its capital expenditure plans with its decarbonisation goals, including key assumptions and key performance indicators (KPIs).
b
The methodology quantifies key outcomes, including the percentage share of its capital expenditures that is invested in carbon intensive assets or products, and the year in which capital expenditures in such assets will peak.

7.1
The company has a Paris Agreement-aligned climate lobbying position and all of its direct lobbying activities are aligned with this.
a
The company has a specific commitment/position statement to conduct all of its lobbying in line with the goals of the Paris Agreement.
b
The company lists its climate-related lobbying activities, e.g. meetings, policy submissions, etc.
7.2
The company has Paris Agreement-aligned lobbying expectations for its trade associations, and it discloses its trade association memberships.
a
The company has a specific commitment to ensure that the trade associations the company is a member of lobby in line with the goals of the Paris Agreement.
b
The company discloses its trade associations memberships.
7.3
The company has a process to ensure its trade associations lobby in accordance with the Paris Agreement.
a
The company conducts and publishes a review of its trade associations’ climate positions/alignment with the Paris Agreement.
b
The company explains what actions it took as a result of this review.

8.1
The company’s board has clear oversight of climate change.
a

The company discloses evidence of board or board committee oversight of the management of climate change risks via at least one of the following:

• There is a C-suite executive or member of the executive committee that is explicitly responsible for climate change (not just sustainability performance) and that executive reports to the board or a board level committee, and/or;

 

• 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 performance) and that committee reports to the board or a board-level committee. 

 

b

The company has named a position at the board level with responsibility for climate change, via one of the following:

 

• A board position with explicit responsibility for climate change, or;

 

• CEO is identified as responsible for climate change, if he/she sits on the board.  
 

8.2
The company’s executive remuneration scheme incorporates climate change performance elements.
a
The company’s CEO and/or at least one other senior executive’s remuneration arrangements specifically incorporate climate change performance as a KPI determining performance-linked compensation (reference to ‘ESG’ or ‘sustainability performance’ are insufficient).
b
The company’s CEO and/or at least one other senior executive’s remuneration arrangements incorporate progress towards achieving the company’s GHG reduction targets as a KPI determining performance linked compensation (requires meeting relevant target indicators 2, 3, and/or 4).
8.3
The board has sufficient capabilities/competencies to assess and manage climate related risks and opportunities. [Beta]
a
The company has assessed its board competencies with respect to managing climate risks and discloses the results of the assessment.
b
The company provides details on the criteria it uses to assess the board competencies with respect to managing climate risks and/or the measures it is taking to enhance these competencies.

9.1
Acknowledgement
a
The company has made a formal statement recognising the social impacts of their climate change strategy—the Just Transition—as a relevant issue for its business.
b
The company has explicitly referenced the Paris Agreement on Climate Change and/or the International Labour Organisation’s (ILO’s) Just Transition Guidelines).
9.2
Commitment: The company has committed to Just Transition principles.
a
The company has published a policy committing it to decarbonise in line with Just Transition principles.
b
The company has committed to retain, retrain, redeploy and/or compensate workers affected by decarbonisation.
9.3
Engagement: The company engages with its stakeholders on Just Transition.
a
The company, in partnership with its workers, unions, communities and suppliers has developed a Just Transition Plan.
9.4
Action: The company commits to a decarbonisation strategy in line with Just Transition principles.
a
The company supports low-carbon initiatives (e.g. regeneration, access to clean and affordable energy, site repurposing) in regions affected by decarbonisation.
b
The company ensures that its decarbonisation efforts and new projects are developed in consultation with and seek the consent of affected communities.
c
The company takes action to support financially vulnerable customers that are adversely affected by the company’s decarbonisation strategy.

10.1
The company has committed to implement the recommendations of the Task Force on Climate related Financial Disclosures (TCFD).
a
The company explicitly commits to align its disclosures with the TCFD recommendations OR it is listed as a supporter on the TCFD website.
b
The company explicitly sign-posts TCFD aligned disclosures in its annual reporting or publishes them in a TCFD report.
10.2
The company employs climate-scenario planning to test its strategic and operational resilience.
a
The company has conducted a climate-related scenario analysis including quantitative elements and disclosed its results.
b
The quantitative scenario analysis explicitly includes a 1.5° Celsius scenario, covers the entire company, discloses key assumptions and variables used, and reports on the key risks and opportunities identified.

Notes

Notes

1.1
The company has set an ambition to achieve net-zero GHG emissions by 2050 or sooner.
a
The company has made a qualitative net-zero GHG emissions ambition statement that explicitly includes at least 95% of scope 1 and 2 emissions.
b
The company’s net-zero GHG emissions ambition covers the most relevant scope 3 GHG emissions categories for the company’s sector, where applicable.

2.1
The company has set a target for reducing its GHG emissions by between 2036 and 2050 on a clearly defined scope of emissions.
2.2
The long-term (2036 to 2050) GHG reduction target covers at least 95% of scope 1 & 2 emissions and the most relevant scope 3 emissions (where applicable).
a
The company has specified that this target covers at least 95% of total scope 1 and 2 emissions.
b
If the company has set a scope 3 GHG emissions target, it covers the most relevant scope 3 emissions categories for the company’s sector (for applicable sectors), and the company has published the methodology used to establish any scope 3 target.
2.3
The target (or, in the absence of a target, the company's latest disclosed GHG emissions intensity) is aligned with the goal of limiting global warming to 1.5°C.*

3.1
The company has set a target for reducing its GHG emissions by between 2026 and 2035 on a clearly defined scope of emissions.
3.2
The medium-term (2026 to 2035) GHG reduction target covers at least 95% of scope 1 & 2 emissions and the most relevant scope 3 emissions (where applicable).
a
The company has specified that this target covers at least 95% of total scope 1 and 2 emissions.
b
If the company has set a scope 3 GHG emissions target, it covers the most relevant scope 3 emissions categories for the company’s sector (for applicable sectors), and the company has published the methodology used to establish any scope 3 target.
3.3
The target (or, in the absence of a target, the company's latest disclosed GHG emissions intensity) is aligned with the goal of limiting global warming to 1.5°C.*

4.1
The company has set a target for reducing its GHG emissions up to 2025 on a clearly defined scope of emissions.
4.2
The short-term (up to 2025) GHG reduction target covers at least 95% of scope 1 & 2 emissions and the most relevant scope 3 emissions (where applicable).
a
The company has specified that this target covers at least 95% of total scope 1 and 2 emissions.
b
If the company has set a scope 3 GHG emissions target, it covers the most relevant scope 3 emissions categories for the company’s sector (for applicable sectors), and the company has published the methodology used to establish any scope 3 target.
4.3
The target (or, in the absence of a target, the company's latest disclosed GHG emissions intensity) is aligned with the goal of limiting global warming to 1.5°C.*

5.1
The company has a decarbonisation strategy to meet its long and medium-term GHG reduction targets.
a
The company identifies the set of actions it intends to take to achieve its GHG reduction targets over the targeted time frame. These measures clearly refer to the main sources of its GHG emissions, including scope 3 emissions where applicable.
b
The company quantifies key elements of this strategy with respect to the major sources of its emissions, including scope 3 emissions where applicable.
5.2
The company’s decarbonisation strategy includes a commitment to ‘green revenues’ from low carbon products and services.
a
The company already generates ‘green revenues’ and discloses their share in overall sales.
b
The company has set a target to increase the share of ‘green revenues’ in its overall sales OR discloses the ‘green revenue’ share that is above sector average.

6.1
The company is working to decarbonise its future capital expenditures.
a
The company explicitly commits to align future capital expenditures with its long-term GHG reduction target(s).
b
The company explicitly commits to align future capital expenditures with the Paris Agreement’s objective of limiting global warming to 1.5° Celsius.
6.2
The company discloses the methodology used to determine the Paris alignment of its future capital expenditures.
a
The company discloses the methodology it uses to align its future capital expenditures with its decarbonisation goals, including key assumptions and key performance indicators (KPIs).
b
The methodology quantifies key outcomes, including the share of its future capital expenditures that are aligned with a 1.5° Celsius scenario, and the year in which capital expenditures in carbon intensive assets will peak.

7.1
The company has a Paris-Agreement-aligned climate lobbying position and all of its direct lobbying activities are aligned with this.
a
The company has a specific commitment/position statement to conduct all of its lobbying in line with the goals of the Paris Agreement.
b
The company lists its climate-related lobbying activities, e.g., meetings, policy submissions, etc.
7.2
The company has Paris-Agreement-aligned lobbying expectations for its trade associations, and it discloses its trade association memberships.
a
The company has a specific commitment to ensure that the trade associations the company is a member of lobby in line with the goals of the Paris Agreement.
b
The company discloses its trade associations memberships.
7.3
The company has a process to ensure its trade associations lobby in accordance with the Paris Agreement.
a
The company conducts and publishes a review of its trade associations’ climate positions/alignment with the Paris Agreement.
b
The company explains what actions it took as a result of this review.

8.1
The company’s board has clear oversight of climate change.
a

The company discloses evidence of board or board committee oversight of the management of climate change risks via at least one of the following:

 

• There is a C-suite executive or member of the executive committee that is explicitly responsible for climate change (not just sustainability performance) and that executive reports to the board or a board level committee, and/or;

 

• 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 performance) and that committee reports to the board or a board-level committee.

 

b

The company has named a position at the board level with responsibility for climate change, via one of the following:

 

• A board position with explicit responsibility for climate change, or;

 

• CEO is identified as responsible for climate change, if he/she sits on the board.

 

8.2
The company’s executive remuneration scheme incorporates climate change performance elements.
a
The company’s CEO and/or at least one other senior executive’s remuneration arrangements specifically incorporate climate change performance as a KPI determining performance-linked compensation (reference to ‘ESG’ or ‘sustainability performance’ are insufficient).
b
The company’s CEO and/or at least one other senior executive’s remuneration arrangements incorporate progress towards achieving the company’s GHG reduction targets as a KPI determining performance linked compensation (requires meeting relevant target indicators 2, 3, and/or 4).
8.3
The board has sufficient capabilities/competencies to assess and manage climate related risks and opportunities.
a
The company has assessed its board competencies with respect to managing climate risks and discloses the results of the assessment.
b
The company provides details on the criteria it uses to assess the board competencies with respect to managing climate risks and/or the measures it is taking to enhance these competencies.

10.1
The company has committed to implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).
a
The company explicitly commits to align its disclosures with the TCFD recommendations OR it is listed as a supporter on the TCFD website.
b
The company explicitly sign-posts TCFD aligned disclosures in its annual reporting or publishes them in a TCFD report.
10.2
The company employs climate-scenario planning to test its strategic and operational resilience.
a
The company has conducted a climate-related scenario analysis including quantitative elements and disclosed its results.
b
The quantitative scenario analysis explicitly includes a 1.5° Celsius scenario, covers the entire company, discloses key assumptions and variables used, and reports on the key risks and opportunities identified.

Notes

Notes