Climate Action 100+

Information presented in this profile is for reference only. The Climate Action in Financial Institutions Initiative does not guarantee as to the exhaustiveness of this information and invites you to contact the Secretariat (contact@mainstreamingclimate.org) if you wish to propose any modifications.

By including this profile, the Initiative, its Supporting Institutions and the Secretariat do not endorse the activities described below nor the guidance and information provided in this profile.

Last updated: June 2019

Website: www.climateaction100.org/

Contact: Oliver Grayer or Ben Pincombe (info@climateaction100.org)

Summary: Launched during the One Planet Summit in December 2017 in Paris, Climate Action 100+ brings together 320 investors with more than $33 trillion in assets to put pressure on the boards and senior management of 100 of the world’s largest corporate emitters to reduce greenhouse gas emissions.

What are the objectives of the initiative?

The objective of the initiative is to “engage with the world’s largest corporate greenhouse gas emitters to curb emissions, strengthen climate-related financial disclosures and improve governance on climate change[1]. Climate Action 100+ was created to support the implementation of the first Global Investor Statement on Climate Change published the months leading up to the adoption of the Paris Agreement. This stated that “as institutional investors and consistent with our fiduciary duty to our beneficiaries, we will work with the companies in which we invest to ensure that they are minimizing and disclosing the risks and maximizing the opportunities presented by climate change.”[2]

“Investors supporting the initiative will be requesting the boards and senior management of companies to:

  1. Implement a strong governance framework articulating the board’s accountability and oversight of climate risks and opportunities;
  2. Take action to reduce greenhouse gas emissions across the value chain in line with the Paris Agreement
  3. Provide enhanced corporate disclosure in line with the final recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)[3]

Who launched it? Who is participating?

Five partner organizations support and coordinate the initiative: Asia Investor Group on Climate Change (AIGCC); Ceres; Investor Group on Climate Change (IGCC); Institutional Investors Group on Climate Change (IIGCC); and Principles for Responsible Investment (PRI).

As of June 2019, 320 investors participate in the initiative.

Why has this been put into place?

“The investor signatories to this initiative believe that engaging and working with the companies in which they invest – to secure greater disclosure of climate change risks and robust company strategies aligned with the Paris Agreement – is consistent with their fiduciary duty and is essential to achieve the goals of the Paris Agreement”.[4]

What are the main work streams/areas of work?

In December 2017, an initial list of 100 focus companies was identified.  This group of companies was selected from a major global index (MSCI ACWI) that represents 85 percent of global investable equity.  The initial 100 focus companies have the highest combined direct and indirect Scope 1, 2 and 3 emissions (emissions associated with the use of their products) using CDP modelled and reported data.

In July 2018, an additional list of 61 companies (known as the “+” list) was added to the focus list of companies. Investors recognize that emissions alone do not demark all opportunities to drive the clean energy transition or exposure to physical risks. Therefore, investor signatories were invited to nominate additional companies that are material to their investment portfolios and have either a significant opportunity to drive the clean energy transition at the global or region level or may be exposed to climate-related financial risks, including risks to physical assets, that are not captured solely by emissions data.

Climate Action 100+ is delivered through a set of Engagement Working Groups operating across regions and sectors.

What are outcomes of the initiative linked with the 5 Principles?

Initial outcomes of engagement operations are made available on the website.

The initiative aims to produce, in partnership with researchers, a public annual report that will assess how the 100 focus companies have responded to the collaborative engagement. It will also set the signatory investors’ engagement priorities for the year ahead.

Have intermediate or final reports / guidance been issued?

Calendar and milestones

 

Associated Supporting institutions of the Climate Action in Financial Institutions Initiative:

[1] https://climateaction100.wordpress.com/about-us/

[2] http://www.climateaction100.org/

[3] https://climateaction100.wordpress.com/faq/

[4] https://climateaction100.wordpress.com/faq/

 

Links with the 5 Voluntary Principles for Mainstreaming Climate Action

This section aims to support discussions on the implementation of the 5 voluntary Principles for Mainstreaming Climate Action. Information provided in this section is for reference only; the Climate Action in Financial Institutions Initiative, its Supporting Institutions and the Secretariat do not endorse the activities nor the guidance and information provided in this section.

By signing to the Initiative, Institutional investors state that they “are aware of the risks climate change presents to [their] portfolios and asset values in the short, medium and long term. [They] therefore support the Paris Agreement and the need for the world to transition to a lower carbon economy consistent with a goal of keeping the increase in global average temperature to well below 2°Celsius above pre-industrial levels.

Through this initiative, [investors] aim to fulfill the commitment made in the “2014/15 Global Investor Statement on Climate Change” which stated that “…as institutional investors and consistent with our fiduciary duty to our beneficiaries, we will work with the companies in which we invest to ensure that they are minimising and disclosing the risks and maximising the opportunities presented by climate change.”

By committing to engage with the upper management of companies in order to make them reduce their greenhouse gas emissions, investors can improve the climate performance of their portfolios.

In addition, the Sign-on Statement includes that:

“The initiative aims to secure commitments from the boards and senior management [of companies] to, [among others]: Provide enhanced corporate disclosure in line with the final recommendations of the Task force on Climate-related Financial Disclosures (TCFD) and sector-specific Global Investor Coalition on Climate Change Investor Expectations on Climate Change (when applicable) to enable investors to assess the robustness of companies’ business plans against a range of climate scenarios, including well below 2-degrees Celsius scenario, and to improve investment decision-making.”

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