Climate Action 100+ increases scrutiny of transition plans in latest benchmark

Carbon-emitting engagement group The Climate Action 100+ (CA100+) has updated its benchmark for assessing companies with the intention of focusing on emissions reductions, alignment with 1.5°C pathways and the robustness of transition plans.

On a thematic level, the updated benchmark looks at emissions reductions, and the key underlying factors leading to these.

This includes inspecting if companies are on track to meet the goals of the Paris Agreement and robust net-zero transition planning, assessing key drivers of company decarbonisation, corresponding capital allocation, and asset-level changes.

The updated CA100+ benchmark also makes amendments to its assessment of historical emissions reductions that will focus on company past emissions intensity reductions and the key factors that led to these.

The CA100+ is an engagement initiative focused on the world’s largest carbon-emitting firms. 

It is managed by five investor networks, including the UN Principles for Responsible Investment, and is made up of 700 global investors that are responsible for more than $68trn in assets under management across 33 markets.

Francois Humbert, lead engagement manager at Generali Insurance Asset Management and current chair of the CA100+ steering committee, said: “Results from previous iterations of the benchmark show that the initiative has inspired an increase in company net zero commitments, board level oversight of climate risks and opportunities, and stronger climate-related financial disclosures.

“It is now imperative that focus companies move beyond disclosure to action, developing and implementing credible, Paris-aligned transition plans backed by sufficient investment, enabling an orderly transition from a financial and social point of view.”

There have been cases where the CA100+ has little to show for its engagement. Saudi Aramco, despite being added to the CA100+ target list in November 2020, has failed to obtain a single one of the targets set by the organisation, and still does not have short-, medium- or long-term targets to reduce its emissions.