CLIMATE ACTION 100+ NET ZERO COMPANY BENCHMARK SHOWS CONTINUED PROGRESS ON AMBITION CONTRASTED BY A LACK OF DETAILED PLANS OF ACTION
BOSTON, Oct. 18, 2023 /PRNewswire/ -- Climate Action 100+, the world's largest investor engagement initiative on climate change, has released the latest round of company assessments against its newly updated Net Zero Company Benchmark, drawing on distinct analytical methodologies and datasets from public and self-disclosed data from companies.
The results show that most focus companies are not moving fast enough to decarbonize and reduce investors' risk.
In 2023, the Disclosure Framework shows that companies have continued to perform well with respect to long-term GHG reduction targets, medium-term GHG reduction targets and TCFD-aligned disclosure.
However, with significant progress still needed on short-term GHG reduction targets, capital expenditure (CapEx) allocation, climate policy engagement, just transition and GHG emissions reductions, the necessary details to demonstrate that companies have credible transition plans to meet their long-term targets and align with the goals of the Paris Agreement are often missing.
The Alignment Assessments further underpin this, with low evidence of companies adopting strategies in line with a 1.5°C pathway set out in the International Energy Agency's Net Zero Emissions by 2050 Scenario (NZE).
A summary of results can be found here. The full dataset can be found here.
Net Zero Company Benchmark results
The Disclosure Framework assessments show:
- More companies are disclosing details on their net zero transition plans, but quantification of individual decarbonisation levers is lacking.
- Companies are making steady progress on long- and medium-term target setting, but most targets are not sufficiently comprehensive or Paris aligned.
- New climate solutions disclosures show positive potential.
The Alignment Assessments, which complement the Benchmark's Disclosure Framework by measuring implementation of Paris-aligned corporate actions, indicate that the majority of focus companies' actions are not aligned with the Paris Agreement.
Alignment Assessments results
- Most companies do not align their real-world climate policy engagement activities with Paris Agreement goals, although partial alignment is increasing.
- 23% of utilities have announced or already phased out their coal assets in accordance with a 1.5°C pathway, the IEA's NZE.
- The CapEx plans of oil and gas companies across the board are not aligned with the Paris Agreement goals.
Revised strategy: A summary of key enhancements to the initiative for Phase 2 can be found here.
Media Contact: Reginald Zimmerman, [email protected], 617-247-0700 ext. 136
SOURCE Climate Action 100+
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