Five Years of Climate Action 100+ Progress and Next Phase
1 February 2023
The initiative has played a significant role in moving heavy emitting focus companies towards net zero, but this must accelerate.
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The Story So Far
- The initiative has played a significant role in moving heavy emitting focus companies towards net zero, but this must accelerate.
- The Climate Action 100+ benchmark and assessment process has delivered clear and reliable evidence that far too many focus companies:
- don’t have credible short and medium term decarbonisation strategies.
- lack capital allocation commitments towards climate-change mitigation.
- These are core challenges that the initiative must address in the next five years.
Progress on the three key asks during phase one.
- Ask: Improve board-level oversight of material climate-related issues
Result: Substantial Improvement: In 2017, when Climate Action 100+ started only five focus companies had set net zero commitments.
- 92% of focus companies now have some level of executive oversight on climate
- 75% of companies have now committed to net zero by 2050.
- Ask: make absolute emission reductions in the real economy
Result: Needs rapid improvement.
- Disclosures and commitments without action are not enough. Companies now need to develop and implement credible transition plans.
- Ask: Disclose climate risk and plans
Result: Substantial improvement.
- 91% of focus companies have now aligned with disclosure recommendations by supporting principles, or employing scenario analysis.
Phase Two Directions
Based on our extensive consultation, we are proposing four key updates for phase two:
- Updating the three key asks
Climate science has evolved, disclosures have changed; as the situation evolves, so should the initiatives goals.
- More options for investors to contribute and engage
Key sectors have barriers to overcome, so companies are slow to move. To address this, investors may want to employ additional tools.
- Enhancing the benchmark tool
The company assessment benchmark tool needs continual refinement.
We will publish Version 2.0 of the benchmark in March, and expect to start phase two in May-June.