$52 Trillion Investor Coalition Release Net-Zero Ratings for Biggest Global Polluters

Today, Climate Action 100+ (CA100) released an assessment of the largest greenhouse gas (GHG) polluting companies for progress against its Net-Zero Company Benchmark. The steering committee of CA100, a global investor coalition that has grown to more than 540 investors managing more than $52 trillion in assets under management, developed the Net-Zero Benchmark as a tool to assess company alignment with the Paris Climate Agreement.

The analysis concludes that less than 25% of the CA100 focus companies have an ambition to achieve net-zero emissions across their full carbon footprint by 2050 or earlier, a key indicator demonstrating that a company is aligned with the Paris Agreement's 1.5-degrees Celsius goal. Other indicators used by CA100 to rate companies' climate progress include disclosure of: long-, medium-, and short-term GHG reduction targets; a decarbonization strategy to meet such targets; aligned capital allocations; aligned lobbying statements and actions; incorporation of climate into governance structures, including executive compensation; and alignment with the Taskforce for Climate-related Financial Disclosures guidelines.

As You Sow, a member of CA100, has several ongoing engagements with CA100 focus companies asking them to reduce climate risk and take advantage of opportunities presented by the transition to a clean energy market. Resolutions filed by As You Sow with General Electric, Caterpillar, and General Motors ask the companies to disclose in alignment with one or more of the Net-Zero Benchmark's critical indicators. General Electric has recognized the value of this request and is notably recommending its shareholders vote for this resolution. As You Sow withdrew a similar resolution with Valero when the company agreed to tie executive compensation measures to success in meeting its climate goals.

Danielle Fugere, president of As You Sow, made the following statement:

"This assessment demonstrates that net-zero climate action is picking up momentum with some of the world's largest greenhouse gas emitters taking action -- a critical first step in meaningfully addressing the existential challenge of climate change. The reporting also demonstrates that there is still major work to be done by the vast majority of large emitters in setting net-zero targets, aligning compensation and capital expenditures with companies' climate strategies, and supporting progressive climate policy. These ratings allow investors to differentiate which companies are leading in aligning their businesses with the Paris Agreement's 1.5-degrees Celsius goal, a critical indicator of future value, and those whose inaction portends growing risk to their companies and to the climate.

"As more company leaders step forward and best practices are demonstrated and rewarded, the momentum for swift action will only increase."

Lila Holzman, senior energy program manager of As You Sow, made the following statement:

"The assessments provided by CA100+, an initiative with wide investor support, are the latest example of a clear signal from investors on the actions they expect companies to take on climate change. We look forward to seeing this tool evolve and provide a baseline bar that all companies must meet."

For more information on As You Sow's work on climate change, click here.