Management

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Total score Targets Material Investment Intangible Investment Management Policy Engagement Business Model

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This module, consisting of six indicators, assesses a company’s climate governance and its strategic approach to the low-carbon transition. ACT assessments are primarily future oriented, so the forward-looking indicators - low-carbon transition plan and scenario planning - are given a heavier weighting. The other indicators - oversight, expertise, management incentives and fossil fuel incentives - have a lower weighting in the overall performance rating, but do provide important contextual information on the company’s credibility and commitment to achieving the Paris goals.

The seven lowest ranking companies have no climate governance in place. This includes four Chinese-headquartered companies – CHN Energy, China Datang Corp, China Huaneng Group and China Three Gorges – as well as Comision Federal de Electricidad (CFE), Egyptian Electricity Holding Company and Saudi Electricity Company, which is yet to acknowledge climate change as an issue.

Across the rest of the companies, low-carbon commitment is evident to varying degrees. 41 of the companies in this benchmark report board-level oversight for climate issues. 42 have reportedly set transition plans or transition planning commitments; but as our third key finding shows us, many of these plans are lacking in substance.

It is only within the companies in the top ten for the management module that we see strengthening of forward-looking commitments with appropriate management and processes. The only five companies (EDP, Ørsted, E.ON, Vattenfall and Iberdrola) to have clearly severed ties between executive remuneration and fossil fuel capacity growth are in this top ten. Indeed, the only three companies (CLP Holdings, Enel and Iberdrola) with at least one board member with climate expertise are in the top five for this module.

Iberdrola – 4th in the overall ranking – performs best in the management module. Iberdrola’s top place in this module is secured by its overall strategic commitment to its decarbonisation goals; not only has it set the strongest low-carbon transition plan of the companies, it is ensuring the successful delivery of this plan through low-carbon aligned executive incentive schemes and board-level expertise. Iberdrola is the only company assessed to achieve top performance across all four of the contextual management indicators.

Ranking overview

1 Iberdrola
Total score 3.5 /4
Management 3.5 /4
2 Vattenfall
Total score 3.2 /4
Management 3.2 /4
3 AES Corporation
Total score 3.1 /4
Management 3.1 /4
- CLP Holdings (中電集團)
Total score 3.1 /4
Management 3.1 /4
5 E.ON
Total score 2.9 /4
Management 2.9 /4
- Enel
Total score 2.9 /4
Management 2.9 /4
7 EDP Energias de Portugal
Total score 2.8 /4
Management 2.8 /4
- Xcel Energy
Total score 2.8 /4
Management 2.8 /4
- Ørsted
Total score 2.8 /4
Management 2.8 /4
10 SSE 
Total score 2.7 /4
Management 2.7 /4
11 Duke Energy
Total score 2.6 /4
Management 2.6 /4
- Origin Energy
Total score 2.6 /4
Management 2.6 /4
13 Dominion Energy
Total score 2.5 /4
Management 2.5 /4
14 Électricité de France (EDF)
Total score 2.4 /4
Management 2.4 /4
15 RWE
Total score 2.3 /4
Management 2.3 /4
16 ENGIE
Total score 2.2 /4
Management 2.2 /4
17 Pacific Gas and Electric (PG&E)
Total score 2.0 /4
Management 2.0 /4
18 AGL Energy
Total score 1.9 /4
Management 1.9 /4
- EnBW Energie Baden-Wuerttemberg
Total score 1.9 /4
Management 1.9 /4
20 Eletrobras
Total score 1.8 /4
Management 1.8 /4
- Tokyo Electric Power Company (TEPCO)
Total score 1.8 /4
Management 1.8 /4
22 American Electric Power (AEP)
Total score 1.7 /4
Management 1.7 /4
- Exelon Corporation
Total score 1.7 /4
Management 1.7 /4
24 Fortum
Total score 1.5 /4
Management 1.5 /4
25 Southern Co
Total score 1.4 /4
Management 1.4 /4
- Uniper
Total score 1.4 /4
Management 1.4 /4
27 Taiwan Power Company (台灣電力公司)
Total score 1.3 /4
Management 1.3 /4
28 CEZ Group
Total score 1.2 /4
Management 1.2 /4
29 Korea Electric Power Corporation (KEPCO/Hanjeon)
Total score 1.0 /4
Management 1.0 /4
- Perusahaan Listrik Negara (PLN)
Total score 1.0 /4
Management 1.0 /4
31 Kyushu Electric Power
Total score 0.9 /4
Management 0.9 /4
- NTPC
Total score 0.9 /4
Management 0.9 /4
33 Tenaga Nasional
Total score 0.8 /4
Management 0.8 /4
34 Chubu Electric Power
Total score 0.7 /4
Management 0.7 /4
- Tohoku Electric Power
Total score 0.7 /4
Management 0.7 /4
- Vistra Energy Corp
Total score 0.7 /4
Management 0.7 /4
37 State Power Investment Corporation (SPIC) (国家电力投资集团)
Total score 0.6 /4
Management 0.6 /4
38 Chugoku Electric Power Company
Total score 0.5 /4
Management 0.5 /4
- Kansai Electric Power Company (KEPCO)
Total score 0.5 /4
Management 0.5 /4
40 Inter RAO
Total score 0.4 /4
Management 0.4 /4
- NextEra Energy
Total score 0.4 /4
Management 0.4 /4
42 China Huadian Corporation (中国华电集团)
Total score 0.2 /4
Management 0.2 /4
- Eskom Holdings
Total score 0.2 /4
Management 0.2 /4
44 China Datang Corp (中国大唐集团)
Total score 0.0 /4
Management 0.0 /4
- China Energy Investment Group (CHN Energy) (国家能源投资集团)
Total score 0.0 /4
Management 0.0 /4
- China Huaneng Group (中国华能集团)
Total score 0.0 /4
Management 0.0 /4
- China Three Gorges (中国长江三峡集团)
Total score 0.0 /4
Management 0.0 /4
- Comision Federal de Electricidad (CFE)
Total score 0.0 /4
Management 0.0 /4
- Egyptian Electricity Holding Company (EEHC)
Total score 0.0 /4
Management 0.0 /4
- Saudi Electricity Company (SEC)
Total score 0.0 /4
Management 0.0 /4