Companies that are the focus of investors in Climate Action 100+ are getting better about making net-zero commitments, but not following through with strategies to achieve them, the investor engagement initiative said Thursday.
Climate Action 100+ represents 700 investors with more than $68 trillion in assets under management who are focused on the world's biggest corporate greenhouse gas emitters. The investors engage with companies to improve corporate governance of climate change, reduce GHG emissions and strengthen climate-related financial disclosures. The group is coordinated by five investor networks.
Climate Action 100+ uses its Net Zero Company Benchmark to assess how well companies meet climate engagement goals, including aligning their business with the goals of the Paris Agreement.
This latest assessment of 159 companies found progress on corporate commitments to net-zero goals that "is not matched by the development and implementation of credible decarbonization strategies," the organization said.
The good news is that 75% of focus companies have now committed to achieve net-zero emissions by 2050 or sooner across all or some of their emissions footprint, 92% have some level of board oversight of climate change and 91% of focus companies have aligned with Task Force on Climate-related Financial Disclosures recommendations.
By contrast, only five focus companies had net-zero commitments when Climate Action 100+ launched in late 2017, and the organization credits investor engagement.
