The latest Climate Action 100+ (CA100+) benchmark has revealed that 65% of focus companies have reduced their emissions intensity in the past year.
CA100+ an investor engagement initiative on climate change, released the latest round of assessments against the Net Zero Company Benchmark On 17 October. The benchmark evaluates the performance of its 168 focus companies against the initiative’s goals.
The latest data showed that 65% of these companies have reduced their emissions intensity. However, CA100+ stated that despite an increasing number of companies achieving reductions, fewer are doing so at the pace necessary to align with a 1.5°C pathway.
According to CA100+, there are instances of some sectors progressing “faster than others”, with most assessed companies in airlines, autos, cement, diversified mining, electric utilities and steel industries demonstrating reduced emissions intensity over the past three years.
These companies comprise the 32 that have aligned their emissions reductions with a 1.5°C scenario, CA100+ noted.
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The benchmark results also revealed that over 90% of all assessed companies have disclosed evidence of board-level oversight of climate change risk management, with 88% publicly committing to implement recommendation of the Task Force on Climate related Financial Disclosures (TCFD) or International Sustainability Standards Board (ISSB) standards.
Also, 78% of companies have set a target to increase revenue or production from climate solutions.
Michael Cohen, chief operating investment officer at CalPERS and global steering committee chair, said: “This year’s report offers some encouragement that the urgency of our engagements is breaking through. But make no mistake: More must be done and there’s no time to waste.”
Alongside unveiling the latest assessments of the Net Zero Company Benchmark, CA100+ also revealed that the initiative has taken on 90 new joiners since June 2023 representing a net increase of 19 over the period, despite prominent exits from US managers.
Mindy Lubber, president and CEO, Ceres and global steering committee member, added: “Corporate emissions are going down - especially in the transportation, steel, and electric utility sectors - and more climate transition action plans are being published.
“While it is good to see companies moving in the right direction, they still need to move faster.”
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