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. The Climate and Energy Benchmark of the highest carbon emitters is the accountability mechanism that will measure corporate progress against the Paris Agreement and SDG 13 to get the planet to where it needs to be.
Why a Climate and Energy Benchmark?
Without urgent climate action, the world will experience more extreme weather events, sea level rise and negative impacts on biodiversity, ecosystems and oceans. These will have a disproportionate effect on the poorest and most vulnerable populations for decades to come.
The Climate and Energy Benchmark will rank the 450 keystone companies in high-emitting sectors and will be updated on an iterative basis. This benchmarking highlights industries and companies that are leading the way, as well as forming an evidence base to hold laggards to account and drive action among stakeholders. Private sector engagement alongside action by governments and civil society are critical for meeting the Paris goals and Agenda 2030.
Partnership with CDP and ADEME
In a strategic partnership with CDP and ADEME (the French agency of the 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.
Scope
The Climate and Energy Benchmark measures companies’ readiness 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. 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. The benchmark 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.
Development process
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.
Publications
- Upcoming in Q2 2020: Electric Utilities Benchmark – currently in data validation and assessment phase.
- Electric Utilities Benchmark Methodology Report (February 2020) This report presents the scope, industry, methodology and companies for inclusion in our first electric utilities benchmark.
- Automotive Benchmark (December 2019) This benchmark presents the key findings and detailed company scorecards from the assessment of 25 keystone automotive manufacturers.
- Automotive Benchmark Methodology Report (July 2019) This report presents the scope, sector, methodology and companies for inclusion in our first automotive benchmark.
From the Assessing low-Carbon Transition project:
- ACT resources and documents, including the complete Automotive and Electric Utilities methodologies.
Events
The World Benchmarking Alliance climate and energy team will be at the following events in 2020:
- London Climate Action Week (July)
- UNFCCC Regional Climate Weeks: Africa Climate Week in Kampala, Uganda (postponed), Asia-Pacific Climate Week in Yokohama, Japan (August) and Middle East and North Africa Climate Week in Dubai, United Arab Emirates (December).
- European Development Days
- COP26
WBA is also an institutional partner to Climate Action.
Team
For further information, please contact Vicky Sins, Lead Climate and Energy Benchmark at WBA.
Vicky Sins
Lead Climate and Energy Benchmark
Charlotte Hugman
Research Analyst
Matt Gwyn
Engagement and Content Strategist
About the ACT initiative
In the Assessing low-Carbon Transition (‘ACT’) initiative, CDP and ADEME combine their expertise to develop methodologies that recognize companies, sector by sector, that have set ambitious climate commitments and are taking steps to ensure the transition to a low-carbon economy.
ACT is a joint voluntary initiative of the UNFCCC Secretariat Global Climate Agenda. The Global Climate Action portal is an online platform where actors from around the globe – countries, regions, cities, companies, investors and other organisations – can display their commitments to act on climate change.
About our partners CDP and ADEME
CDP is a not-for-profit charity that runs the global disclosure system that enables companies, cities, states and regions to measure and manage their environmental impacts. CDP has built the most comprehensive collection of self-reported environmental data in the world. CDP’s network of investors and purchasers – representing over US$100 trillion – along with policy makers around the globe, use the data and insights to make better-informed decisions.
ADEME is active in the implementation of public policy in the areas of the environment, energy and sustainable development and provides expertise and advisory services to businesses, local authorities and communities, government bodies and the public at large, to enable them to establish and consolidate their environmental action. As part of this work the agency helps finance projects, from research to implementation, in its areas of action.