A new assessment released by Climate Action 100+, a global investor engagement initiative on climate change, has shown some corporate climate progress against key climate indicators, but finds much more action is urgently needed from focus companies to support global efforts to limit temperature rise to 1.5°C.
The assessment is the second round of Net Zero Company Benchmarks to be released by Climate Action 100+ since March 2021. 166 companies on the initiative’s focus list were measured on their progress against the initiative’s three engagement goals and a set of key indicators related to business alignment with the goals of the Paris Agreement.
The assessments indicate overall year-on-year improvements on cutting greenhouse gas emissions, improving climate governance, and strengthening climate-related financial disclosures Key findings include:
- Globally:
- While 69% of focus companies have set commitments to achieve net zero emissions by 2050 or sooner, overall Benchmark finds companies have failed to show progress across key indicators, including disclosure of 1.5°C-aligned medium-term emissions targets and capex strategies.
- Benchmark sets urgent engagement priorities for USD 68 trillion investor-led initiative ahead of U.S. and European proxy season and as it marks the final year of its first phase.
- Investor signatories will give focus companies another chance to step up action in 2022, with another round of assessments planned for later in the year.
- Australasia:
- As a group, Australian companies have performed relatively better on net zero targets for 2050 or earlier, governance, and disclosure of their target plans. This is important progress.
- However, 12 of the 14 Australian focus companies’ emissions reduction targets are not aligned with limiting global heating to 1.5°. This is very alarming to investors in these companies.
- Australian companies do very poorly on scope 3 emissions, and Australian and global companies all do extremely poorly on allocating capital expenditure in line with their climate targets or the goals of the Paris agreement.
More information here