Climate Action 100+ releases the latest evolution of the Net Zero Company Benchmark
31 March 2023
In consultation with investor signatories, the initiative releases today an updated Benchmark (Benchmark 2.0) to ensure that it continues to effectively support investor engagements with focus companies during this critical decade.
The enhancements made intend to embed a stronger focus on emissions reductions, alignment with 1.5°C pathways and the robustness of transition plans.
The Benchmark will remain one of the key pillars of the initiative as it embarks upon Phase 2.
• In consultation with investor signatories, the initiative releases an updated Benchmark (Benchmark 2.0) today to ensure that it continues to effectively support investor engagements with focus companies during this critical decade.
• The enhancements made intend to embed a stronger focus on emissions reductions, alignment with 1.5°C pathways and the robustness of transition plans.
• The Benchmark will remain one of the key pillars of the initiative as it embarks upon Phase 2.
Climate Action 100+, the world’s largest investor engagement initiative on climate change, has launched the latest evolution – Benchmark 2.0 – of the Net Zero Company Benchmark (‘the Benchmark’).
Now in its third iteration, the Benchmark’s latest iteration will continue its role informing and supporting investors in their engagements with focus companies during this critical decade.
The Benchmark 2.0 framework draws on distinct analytical methodologies and datasets (from public and self-disclosed data from companies) categorised into two types of indicators: Disclosure Framework Indicators, which evaluate the adequacy of corporate disclosure; and Alignment Assessments, which evaluate the alignment of company actions with the Paris Agreement goals. The Benchmark is not a disclosure mechanism or database itself, but rather an assessment tool.
Enhancements have been made following a public consultation with investor signatories, other stakeholders and interested parties. A comprehensive overview of all changes and Benchmark 2.0 can be viewed here.
KEY CHANGES TO THE NET ZERO COMPANY BENCHMARK
Thematically, the Benchmark changes centre around:
- Emissions reductions, and the key underlying factors leading to these.
- Alignment with 1.5°C pathways, evaluating if companies are on track to meet the goals of the Paris Agreement.
- Robust net-zero transition planning, assessing key drivers of company decarbonisation, corresponding capital allocation, and asset-level changes.
KEY UPCOMING MILESTONES
- The company review period for the Disclosure Framework, during which companies will be invited to provide factual feedback on their preliminary Disclosure Framework assessments, will run for four weeks from the end April.
- Assessments using Benchmark 2.0 will be released in September/October 2023.
More about the Benchmark 2.0 Framework
More about the Net Zero Company Benchmark