Climate and Energy Benchmark

Aim

A major decarbonisation and energy transformation is needed to align with global efforts to prevent the worst impacts of climate change and limit global warming to well below 2°C. Without urgent climate action, the world will experience more extreme weather events, rise of sea levels and negative impacts on ecosystems. These will have a disproportionate effect on the poorest and most vulnerable populations for decades to come.

We believe that private sector engagement alongside action by governments and civil society are critical for meeting the Paris Goals.  WBA’s Climate and Energy Benchmark will rank 450 keystone companies in high-emitting sectors which will be updated on an iterative basis. It is set to be an accountability mechanism which will highlight industries and companies that are leading the way, and form an evidence base to hold laggards to account and drive action among stakeholders.

Scope

The Climate and Energy Benchmark measures the readiness of companies to transition to a low-carbon economy, using the future-oriented ACT methodologies. The assessments use company emissions pathways based on the sectoral decarbonisation approach developed by the Science-Based Targets Initiative (SBTI). To assess companies against the well-below 2 degrees Paris Goal, the most ambitious scenarios available from IEA are used to calculate the company pathways. The methodologies include indicators that align with the information disclosed by companies using CDP, GRI and SASB. They also show alignment with and support the objectives of the recommendations made by the TCFD.

The benchmark tracks the keystone companies in the highest emitting sectors, identified through extensive consultation and research, including on the industry groups included in the TCFD recommendations. It will include companies from the automobile, construction materials and supplies, electric utilities, heavy machinery and electrical equipment, heavy transportation, logistics, metals and mining, oil and gas, passenger transport, and real estate sectors.

Methodology

The ACT methodologies are open for public consultation during their development. ACT seeks the views and opinions of a wide range of stakeholders including companies, NGOs, academics, and other interested parties. All ACT resources including our methodologies for benchmarks launched till now can be found here.

Just transition

Partnership with CDP and ADEME

In a strategic partnership with CDP and ADEME (The French Agency For Ecological Transition), WBA is developing the Climate and Energy Benchmark to accelerate the global decarbonisation and energy transformation. By operationalising the Assessing low-Carbon Transition (‘ACT’) methodologies, this benchmark measures and ranks keystone companies across high-emitting industries, including automotive, electric utilities, and oil and gas. These top ‘influencers’ are assessed on their past performance, current strategies and forward-looking targets and alignment to the Paris Agreement.