METHODOLOGIES: NET ZERO COMPANY BENCHMARK

The Net Zero Company Benchmark draws on distinct analytical methodologies and datasets based on public and self-disclosed data from companies. These evaluate focus company performance against the initiative’s goals and their progress on the net-zero transition.  

The types of assessments can broadly be categorised into two types of indicators, which form a dual approach to evaluating corporate progress: 

• Disclosure Framework Indicators evaluate the adequacy of corporate disclosure; 
• Alignment Assessments evaluate the alignment of company actions with the Paris Agreement goals.  

Scope of assessments

The 2023 Benchmark Disclosure Framework and Climate Policy Engagement Alignment Assessments, cover 150 focus companies.

Companies that were added to the Climate Action 100+ focus list as part of the initiative’s next phase in June 2023 and Russian focus companies (MMC Norilsk Nickel PSJC, Gazprom PAO, Lukoil OAO, Rosneft Oil Company, and Severstal PAO), with whom investor signatories paused active engagement until further notice, have not been assessed against the Benchmark in 2023. In addition to this, Exelon Corporation and Constellation became separate entities in February 2022, and have also not been assessed against the Benchmark in 2023.

Please note that the Climate Accounting and Audit Assessments also exclude electric utilities subject to rate-of-return regulation, while the sector-specific Capital Allocation Alignment Assessments only apply to focus companies in the airlines, cement, electric utilities, oil and gas, and steel sectors.

What’s New? Benchmark 2.0

In March 2023, following a consultation with investor signatories, Climate Action 100+ released an updated Benchmark framework (Benchmark 2.0) to ensure that it continues to effectively support investor engagements with focus companies during this critical decade.

Select Your Language to DownloadEnglishSimplified ChineseTraditional ChineseJapanese

Disclosure Framework

The Disclosure Framework Indicators, assessed by the Transition Pathway Initiative Centre (TPI Centre), draw on public and self-disclosed data from companies collected from sources such as corporate annual reports, sustainability reports, press releases, and Carbon Disclosure Project disclosures.

The Disclosure Framework comprises 11 Indicators. Each of these comprises 1-4 Sub-indicators which are divided into 1-4 Metrics each. Disclosure Framework Metrics are assessed on a binary Yes/No basis. On the basis of metric-level results, Sub-indicators and Indicators are then scored on a Yes/No/Partial basis (or Not Applicable/Not Assessed) labelled Green/Red/Amber (or Grey), respectively. The Disclosure Framework assessments do not provide overall or aggregate scores, or rankings of companies. In 2023, 150 focus companies have been assessed against the Disclosure Framework.

Select Your Language to DownloadEnglishSimplified ChineseTraditional ChineseJapanese

ALIGNMENT ASSESSMENTS  

Alignment Assessments complement the Disclosure Framework Indicators by providing independent evaluations of the alignment of company actions with the goals of Climate Action 100+ and the Paris Agreement.  

These assessments are conducted by the Carbon Tracker Initiative (CTI), the Rocky Mountain Institute (RMI; formerly 2 Degrees Investing Initiative, 2DII) and InfluenceMap. They can be divided into assessments applying to focus companies across industries and assessments applying to specific sectors. 

CLIMATE ACCOUNTING & AUDIT

Provided by Carbon Tracker Initiative

CTI’s Climate Accounting and Audit Assessment evaluates whether a focus company’s accounting practices and related disclosures, and the auditor’s report thereon, reflect the effects of climate risk, the global move towards a 2050 (or sooner) net zero emissions pathway, and the Paris Agreement goal of limiting global warming to no more than 1.5°C. This assessment has moved out of provisional form in 2023. In addition, from 2023 onwards, this assessment will not apply to rate-of-return regulated electric utilities.
Download

CLIMATE POLICY ENGAGEMENT ALIGNMENT

Provided by InfluenceMap

InfluenceMap’s Climate Policy Engagement Alignment Assessments provide detailed analyses of the alignment of company climate policy engagement actions (direct and indirect via their industry associations) with the Paris Agreement goals, as well as the quality and accuracy of company disclosures on their climate policy engagement activities. In 2023, these assessments cover 150 focus companies.
Download

Alignment Assessments applying to companies in specific sectors cover the following areas:

OIL & GAS: CAPITAL ALLOCATION ALIGNMENT

Provided by Carbon Tracker Initiative

For oil and gas focus companies, CTI’s Alignment Assessments analyse companies’ potential capital expenditures (CapEx) for unsanctioned upstream oil and gas carbon-emitting assets relative to a range of climate change scenarios. In 2023, these assessments cover 30 focus companies in the oil and gas sector.
Download

ELECTRIC UTILITIES: CAPITAL ALLOCATION ALIGNMENT

Provided by Carbon Tracker Initiative 

For electric utility focus companies, CTI’s Alignment Assessments analyse companies’ announced retirement schedules for coal and gas-fired power generation capacity and new planned additional carbon-emitting assets relative to a range of climate change scenarios. In 2023, these assessments cover 31 focus companies in the electric utility sector.
Download

AIRLINES, AUTOS, CEMENT, ELECTRIC UTILITIES AND STEEL: CAPITAL ALLOCATION ALIGNMENT

Provided by Rocky Mountain Institute

For electric utility and autos focus companies, RMI’s alignment assessments analyse focus companies’ planned capital allocation relative to a range of climate change scenario pathways for the sectors. RMI’s electric utility assessments also evaluate asset-level decarbonisation. In addition, RMI’s alignment assessments for airline, cement and steel focus companies analyse their planned economic outputs and associated emissions intensities relative to selected climate change scenarios.  

RMI’s assessments cover 31 focus companies in the electric utility sector; 12 focus companies in the automotive sector; 5 focus companies in the airline sector; 11 focus companies in the cement sector; and 7 focus companies in the steel sector.
Download

INVESTOR GUIDE TO SUPPORT ENGAGEMENT IN ASIA

The investor guide supports investors engaging with Asian companies on the Climate Action 100+ focus list in understanding how the Net Zero Company Benchmark relates to them and the key challenges they might encounter during the engagement process. Case studies are included to provide examples of how Asian companies are taking actions to meet the indicators of the Disclosure Framework. Although the guide has a focus on supporting engagement in Asia, it is generally applicable across regions.

Select Your Language to DownloadEnglishSimplified ChineseTraditional ChineseJapanese