As the global surface temperature continues to set record highs – including in the first nine months of 2022 – investors continue to press companies for concrete action to address the global climate crisis. The latest benchmark from Climate Action 100+ (CA100+) details new company commitments and the need for continued focus on company plans to meet the climate transition.
Mercy Investment Services actively participates in CA100+, an initiative of more than 300 investors engaging 165 of the world’s largest corporate greenhouse gas emitters, now in its fifth year. The CA100+ Net-Zero Company Benchmark evaluates these companies on their plans for net-zero transition, their governance structures to meet targets to reduce greenhouse gas emissions, their efforts toward better climate policy and to ensure a Just Transition for workers and communities, and their overall climate-related financial disclosures.
The latest CA100+ benchmark measured 159 companies’ progress against these goals as well as their overall alignment with the Paris Agreement. Results show more focus companies are implementing Task force for Climate Related Disclosures guidelines, committing to achieving net-zero emissions by 2050, and setting long-term targets that align with a 1.5°C goal. However, most still lack concrete transition plans detailing how they’ll achieve these net-zero commitments.
The CA100+ benchmark remains a critical tool for investors to measure company progress and identify engagement priorities for the upcoming shareholder advocacy season; Mercy Investment Services will use the benchmark in its engagements to advocate for a healthy planet for all.