Climate Action 100+ Benchmark 2.0 seeks to drive “Company Ambition”

Here’s the intro from this “ESG Investor” note about Climate Action 100+’s updated benchmark (see Climate Action 100+’s deck about the changes):

The new iteration of Climate Action 100+’s (CA100+) Net Zero Company Benchmark has a “stronger focus” on emissions reductions, alignment with 1.5°C pathways and the robustness of transition plans, the investor-led alliance said.

Enhancements include the introduction of a new disclosure indicator for historical emissions reductions, as well as “significant” amendments to indicators covering decarbonisation strategy, capital allocation, policy engagement, and just transition.

The benchmark launched in March 2021 to assess the performance of focus companies against the initiative’s three high-level goals: emissions reduction, governance and disclosure. Benchmark 2.0’s release follows an “extensive consultative process” including a public survey and a consultation in which 125 investors and other stakeholders offered feedback.

Jasna Šelih Senior Specialist, UN Principles for Responsible Investment (PRI), one of CA100+’s coordinating investor networks, told ESG Investor, “This is a really good set of new indicators. They’ll drive greater company ambition and position CA100+ well for the next phase of the initiative.”

“We hope that the new analysis that will come with these changes will support asset owners and institutional investors’ engagement with focus companies,” she added.