Climate and Energy Benchmark
The WBA’s Climate and Energy Benchmark in electric utilities sector 2023, developed in partnership with CDP, measures and ranks 68 of the world’s most influential electric utilities companies on their low-carbon transition for the third time since the first benchmark in 2020. Since its first iteration we have increased the number of assessment companies to ensure more comprehensive coverage of all regions and global electricity production.
The third iteration of the Electric Utilities Benchmark combines the ACT Electricity and just transition methodologies to provide an overall score and ranking of electric utilities companies. By considering social and decarbonisation issues together, the benchmark mobilises stronger action needed to hold companies accountable on contributing towards a low-carbon transition that leaves no one behind.
The companies’ targets and performance are assessed against their 1.5°C (2.7°F) pathways to see if they are on track to meet the Paris Agreement goals. In 2022, emissions from the electricity and heat sector peaked at 14.6 Gt, constituting 40% of global energy-related CO2 emissions (IEA, 2023). The accessibility, understanding, and cost-effectiveness of renewable sources like solar photovoltaic (PV) and wind make them crucial for a swift and effective transition. A clean shift in the electricity sector is vital to maintain the 1.5 °C pathway, ensuring broader cross-sectoral reductions in industry, transport, and building emissions.
In addition to the 68 electric utilities companies 11 capital goods companies, including manufacturers of renewable generation technologies and integrated companies, have been included to a snapshot of the sectoral value chain. This assessment is a first look into the climate performance of companies that provide electricity generation technologies to EU companies, as well as are involved in solutions for renewable generation, transmission & distribution, energy storage and digitalisation. These companies cover technologies that electric utilities companies depend upon and hence they act as “enablers of the enablers”. In addition, the integration of these companies allows to deepen the analysis of the sectoral value chain of the electricity system. The capital goods companies have been assessed using the ACT Generic methodology, since they do not fit the scope of the ACT Electricity methodology.
Ultimately, our Climate and Energy Benchmark will cover rankings of 450 of the world’s most influential, companies in high-emitting sectors including automotive, electric utilities, oil and gas, transport, real estate and buildings development/construction, and heavy industries. These sector benchmarks will be regularly updated.Read more here
About our partners
About CDP: CDP is a global non-profit that runs the world’s environmental disclosure system for companies, cities, states and regions. Founded in 2000 and working with more than 590 investors with over $110 trillion in assets, CDP pioneered using capital markets and corporate procurement to motivate companies to disclose their environmental impacts, and to reduce greenhouse gas emissions, safeguard water resources and protect forests. Over 10,000 organizations around the world disclosed data through CDP in 2020, including more than 9,600 companies worth over 50% of global market capitalization, and over 940 cities, states and regions, representing a combined population of over 810 million. Fully TCFD aligned, CDP holds the largest environmental database in the world, and CDP scores are widely used to drive investment and procurement decisions towards a zero carbon, sustainable and resilient economy. CDP is a founding member of the Science Based Targets initiative, We Mean Business Coalition, The Investor Agenda and the Net Zero Asset Managers initiative. Visit cdp.net or follow us @CDP to find out more.
About ACT: ACT is a joint voluntary initiative recognised by the UNFCCC secretariat Global Climate Agenda and supported by the French government. It aims at driving companies’ climate actions to align their strategies with low-carbon pathways. ACT provides an accountability framework to assess how companies’ strategies and transition plans contribute to the Paris Agreement mitigation goals. ACT takes an integrated and forward-looking approach to measure quantitatively and qualitatively decarbonisation performance across the past, present and future focusing on the major emissions sources in the business value chain. Publicly available assessment methodologies are sector specific responding to each sector’s own transition challenges. A complementary method that equips less mature businesses to develop robust low carbon strategies and implement relevant transition plans. Click here for more
Please find below the link to download the full press release.See press release