Climate Action 100+ will release the next full iteration (referred to as ‘v1.1’) of the Net-Zero Company Benchmark in March 2022, providing updated company assessments for investors.
Focus companies, investor signatories, and other stakeholders are requested to take note of the processes, timelines, and key dates outlined in this update.
The Net-Zero Company Benchmark is composed of two types of assessments: a Disclosure Framework and Alignment Assessments. These two types of analysis are complementary and share the common goal of helping investors assess a company’s transition to a net-zero future.
The process for carrying out company assessments using the Disclosure Framework for v1.1 in March 2022 will be similar to that followed in 2021, with limited changes to the Benchmark assessment criteria. This is to allow for more timely and frequent iterations of the Benchmark and maintain consistency between the 2021 and 2022 annual assessments.
Through sharing this guidance and process early, companies are called upon to make renewed commitments and disclosures towards aligning with the Climate Action 100+ Net-Zero Company Benchmark and goals of the Paris Agreement. These commitments will contribute to the joint efforts of governments, companies, and investors to address climate change risks and to promote ambitious climate action.
|Disclosure Framework Timeline and Key Dates for Focus Companies, Investors, and other Stakeholders to Keep in Mind|
|September 2021: Company research and analysis begins||Climate Action 100+ data providers, TPI and FTSE Russell will begin company research and data collection using the Benchmark v1.1 disclosure framework and assessment methodology (see below). Company data disclosed before 31st August 2021 will be researched and analysed. TPI and FTSE Russell will assess new disclosures provided by companies between 1st September until 31st December 2021 as part of the review period outlined below.|
|1 December 2021: Companies receive assessments and may provide new disclosure information||Company feedback on their preliminary assessments begins. Preliminary assessments (with disclosures as of 31st August) using Benchmark v1.1 will be confidentially shared with each Climate Action 100+ focus company and its lead investors. This is an opportunity for companies to flag if any information collected by our data providers is incorrect or missing.|
|31 December 2021: Deadline for all new company disclosures||Cut-off date for all company feedback on preliminary assessments. The initiative will not be able to accept any feedback or additional disclosures provided after 31st December deadline.|
|January – February 2022: All company assessments finalised||Finalisation of assessment results. Directly after the cut-off date for company feedback, work will begin to finalise assessments ahead of the EU/US proxy voting season.|
|March 2022: Public release of the 2022 company assessments||Launch of Benchmark v1.1 company assessments, published via the Climate Action 100+ website.|
For details on the updated frameworks and methodologies that will underpin v1.1, please refer to the resources below.
There will be an opportunity to provide feedback through a public feedback survey on the Benchmark v1.1 framework. This will be made available via the Climate Action 100+ website in mid-October.
Please direct any further questions to [email protected]
|Key Resources: Climate Action 100+ Net-Zero Company Benchmark v1.1|
|Benchmark v1.1 Summary Package – This outlines the key enhancements to the Benchmark framework and methodologies since 2021 and provides more information about the roll out of v1.1. It includes an overview of the assessments to be provided by the Benchmark data providers: Transition Pathway Initiative (TPI), Carbon Tracker Initiative (CTI), 2 Degrees Investing Initiative (2DII) and InfluenceMap.*|
|Disclosure Framework Resources||Alignment Assessment Resources|
v1.1 Disclosure Framework indicator wording – Summary of the disclosure indicators that focus companies will be assessed against by TPI.
v1.1 Disclosure Framework assessment methodology – Guidance used to collect company data and assess disclosures, as well as how assessments are presented (‘traffic light system’).
(CTI) Capital Allocation Alignment for utilities and oil & gas indicators and assessment methodology. Further materials to follow.
(2DII) Capital Allocation Alignment for utilities, autos, steel, cement and aviation indicators and assessment methodology.
(InfluenceMap) Climate Policy Engagement Alignment indicators and assessment methodology.
|(CTI) Climate Accounting & Audit indicators and assessment methodology. Further materials to follow.|
* Please note that v1.1 of the benchmark will also contain additional Alignment Assessments (formerly known as ‘Capital Allocation Indicators’). These will include InfluenceMap’s ‘Organisation Scores’ and ‘Relationship Scores’, which assess focus companies’ direct and indirect climate lobbying activities respectively. In addition, they may include potential new analytics from 2DII measuring the emissions intensities of steel, cement, and aviation companies against reference climate scenarios. The details of these methodologies will be made available on the Climate Action 100+ website in due course. All other alignment indicators from CTI and 2DII contained in Benchmark v1.0 released in March 2021 will remain the same.
Background on Climate Action 100+ and the Net-Zero Company Benchmark
The Climate Action 100+ initiative was initiated in December 2017 to engage some of the world’s highest corporate emitters that are systemically important in the transition to net-zero emissions by 2050 or sooner. More than 615 investors, responsible for over $55 trillion in assets, are now signatories to the initiative. Climate Action 100+ commenced with three high-level objectives for focus companies: improved climate change governance; action on greenhouse gas (GHG) emissions across the value chain; and reporting consistent with the Task Force on Climate-related Financial Disclosures (TCFD).
In March 2021, the initiative released the first set of company assessments using the Climate Action 100+ Net-Zero Company Benchmark, which builds on the three high-level objectives of the initiative. The March 2021 Benchmark found that whilst 52% of focus companies have committed to achieve net-zero GHG emissions by 2050 or sooner, there is still plenty of work remaining to ensure that companies develop and disclose robust transition plans. Full press release is available here.