Driving robust climate action by evaluating the credibility and integrity of major companies’ transition plan.
The methodology sets out the metrics that we used to assess companies on the credibility and integrity of their transition plan. Designed for scalability, the methodology draws relevant common elements from the sectoral ACT Assessment methodologies while adding flexibility to assess companies across a wider range of industries, within a unified framework. It has been developed with the realities of public disclosure in mind, while preserving the performance-oriented approach of ACT assessments for key elements of transition planning.
The ACT Core total score reflects two key dimensions: the company’s transition plan quality (TPQ) and its contribution to the low-carbon transition (CTT). TPQ scores range from 0 when no key element of a transition plan is met, to a maximum of 5 when all key elements are met. CTT scores range from 0 when no low-carbon investments are deployed and emissions reductions and targets are incompatible with and ambitions 1.5 °C sectoral pathway, to a maximum of 2 when emissions reductions and targets are compliant with a 1.5 °C sectoral pathway and significant low-carbon investments are being deployed. The two dimensions are combined into a letter grade to obtain the total score. Note that the CTT only contributes to the total score when TPQ is above 4.
G (Uncommitted) = 0 for TPQ and any for CTT
F (Non-mature) = 1 for TPQ and any for CTT
E (Committed but not planning) = 2 for TPQ and any for CTT
D (Unstructured plan execution) = 3 for TPQ and any for CTT
C (Inconsequential planning) = 4 or 5 for TPQ and 0 for CTT
B (Consequential planning) = 4 or 5 for TPQ and 1 for CTT
A (1.5°C aligned and planning) = 4 or 5 for TPQ and 2 for CTT
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