The Assessing low-Carbon Transition (ACT) Electric Utilities sector methodology is a product of the ACT initiative, which assesses an organisation’s readiness to transition to a low-carbon economy and aims to drive action by companies to move to a 1.5 °C pathway in terms of their climate strategy, business model, investments, operations, and GHG emissions management. The ACT initiative, a joint project between ADEME and CDP, has created an overarching framework and sector-specific methodologies, of which the electric utilities methodology is one.

The ACT electric utilities methodology includes principles, scope, boundaries and performance indicators as well as performance, narrative and trend scoring explanations. The methodology was developed through research and multi-stakeholder dialogue. ACT builds on the Sectoral Decarbonization Approach (SDA), developed by the Science-Based Targets Initiative (SBTi), to compare a company’s alignment to the low-carbon pathway.

Together with ACT and CDP, the World Benchmarking Alliance (WBA) has translated this methodology into the Electric Utilities ranking. A summary and explanation of how it was applied is contained here. This forms the second of a series of rankings within the Climate and Energy Benchmark of the WBA. This ranking series has so far measured and ranked the climate action performance of automotive manufacturers, and will measure and rank companies in other high carbon emitting industries, including oil and gas, within the decarbonisation and energy system transformation.


The WBA Electric Utilities ranking is a sector-specific ranking within the WBA Climate and Energy Benchmark. The Climate and Energy Benchmark will clarify where and how companies can contribute to SDG 13 and SDG 7 (among others) and the Paris Agreement, and incentivise them to align their strategies and operations with a 1.5°C pathway. It is part of the decarbonisation and energy system transformation  identified by the WBA as one of the seven system transformations required to achieve the Sustainable Development Goals (SDGs).

An assessment of the SDGs and corresponding targets demonstrated that the decarbonisation and energy transformation can have a significant impact on SDG 1 (no poverty), SDG 3 (good health and wellbeing), SDG 7 (affordable and clean energy), SDG 9 (industry, innovation and infrastructure), SDG 12 (responsible consumption and production), SDG 13 (climate action) and SDG 17 (partnerships for the goals), amongst others.

WBA benchmarks build on existing standards and norms and seek to draw on existing frameworks and initiatives. For this reason, the ACT methodologies have been adopted as suitable existing methodologies. The ACT methodologies, used to create the Climate and Energy Benchmark, can act as roadmaps, setting out how high-emitting companies can contribute to the decarbonisation and energy transformation and achieve SDGs 1, 3, 7, 9, 12, 13 and 17 – amongst others – and the Paris Agreement.

Before the Climate and Energy Benchmark began, a mapping exercise identified that the Taskforce on Climate-related Financial Disclosures (TCFD) was strongly aligned with the benchmark (although their objectives and audiences differ slightly). The Climate and Energy Benchmark uses data that the TCFD promotes the publication of, while the benchmark can allow financial actors to better understand transition risk. Both initiatives focus on companies’ governance, strategy analysis and metrics and targets, and aspects of risk management practices (such as low-carbon transition plan and climate change scenario analysis). You can read more about the relationship between the WBA Climate and Energy Benchmark, ACT and the TCFD below.

Read more about how our work relates to the TCFD 

Scope of industry in the benchmark

The electric utilities sector covers four main activities: generation, transmission, distribution, and retail/marketing. The WBA Electric Utilities ranking focuses on companies with significant electricity generation activities because this is where the highest emissions impact of the sector lies, and therefore where the ACT methodology focuses its assessment. Generation emissions represent more than an estimated 90% of Scope 1 and 2 emissions of companies in the sector, and they represent uniform data that can accurately measure an electric utility’s low-carbon transition. Companies in the ranking may have other activities with significant emissions, which will be considered but only to the extent they reinforce or undermine the overall transition strategy of the company.

The activities of gas distribution and retail, mining of fossil fuel resources and maintenance of other utility networks (telecoms, water, etc.) are outside the scope of the methodology, although some companies in the sector also operate in these segments.

Scope of companies in the benchmark

The electric utilities sector’s keystone companies are included in the Electric Utilities ranking. The ‘keystone company’ based on the concept and characteristics of keystone actors as defined by Österblom et al in 2015, as those that play a vital role in the industry and have a disproportionate effect on the structure and function of the system in which they operate. 50 keystone companies were selected to be included in the rankings based on the following criteria:

  1. The company dominates global or regional production revenues and/or volumes within the electric utilities sector.
  2. The company controls globally or regionally relevant segments of production and/or service provision, based on an assessment of gigawatts of installed capacity and renewable energy generation.
  3. The company connects (eco)systems globally or regionally through subsidiaries and their supply chains.
  4. The company influences global or regional governance processes and institutions.
  5. The company has a globally or regionally significant footprint, particularly in developing countries. For this industry, this meant identifying the largest generators globally, including major developing country corporations, mindful of a diverse regulatory environment around the world.
Read more about how our work relates to the TCFD


Like every ACT methodology, the ACT electric utilities methodology assessment generates a rating comprising:

  • A performance score – represented as a number from 1 (lowest) to 20 (highest) – presents a broad view of company performance across core elements for low-carbon transition.
  • A narrative score – represented as a letter from A (highest) to E (lowest) – provides a holistic view of a company’s state of alignment with the goals of the Paris Agreement.
  • A trend score – represented as “+” for improving, “=” for remaining the same, or “-“  for worsening – signals the expected near-term movement of company alignment with the low-carbon economy.

For the electric utilities’ performance assessment, company data is analysed across six modules: targets, material investment, intangible investment, management, policy engagement, and business model. Each of these modules contains indicators, and each module and indicator has a weight (see figure below). The weights are guided by the principles of the value of the information in assessing a company’s low-carbon transition, the impact of a variation in this module having a significant impact on the company’s low-carbon transition, emphasising future orientation as this is more valuable and how sensitive the indictor is to variations in data quality.

Performance indicator and module weighting

A company’s module-level scores, and the overall performance score, are presented in each WBA company scorecard. The text in the “Leading practices” and “Risks and opportunities” sections give additional commentary on applicable performance assessment modules.

The narrative assessment is an overall analysis of all available data sources (including sources additional to those used for the performance assessment) to establish a company’s state of alignment with the goals of the Paris Agreement. The narrative assessment considers the performance assessment, as well as further analysis of available information on the company based on four criteria: business model and strategy; consistency and credibility; reputation; and risks. The overall narrative score is presented in each WBA company scorecard. The section “Progress towards the Paris Agreement provides additional commentary on each of the five ACT guiding questions that create consistent ACT ratings: on commitments, transition planning, present activities, legacy and consistency.

For the trend assessment, the company is assigned a “+”, “=”, or “-”, depending on whether the analyst deems that the future company will be less, equally or more able to meet the requirements of the low-carbon transition in a re-assessment in the near-term. This is presented in each WBA company scorecard. The section “Trend” provides additional commentary on the trend assessment.

Approach to scoring and ranking

The analyst applying the ACT methodology assesses the data and gives a score per indicator which is used to calculate the performance element of the ACT score. The narrative assessment is then produced according to the narrative score principles by referring to both the information considered for the performance assessment plus other verifiable public data on the company such as annual and sustainability reports and news from reliable sources. Finally, the trend score is produced by synthesising the forward-looking aspects of the assessment to give a view of the likely future trend in company performance.

To create the overall Electric Utilities ranking, a weighting is applied to each of the performance, narrative, and trend scores as follows:

  • The performance score has a 1:1 weighting, i.e., a score of 12 is 12;
  • The narrative score is weighted: A=20, B=15, C=10, D=5, E=0; and
  • The trend score is weighed: “+”=2, “=”=1, “-“= 0.

This overall weighted score resulted in the Electric Utilities ranking.

Total figures for performance assessments can be subject to rounding differences, but this has not had any overall effect on the ranking.

Data collection process and assessment

The Electric Utilities ranking for 2021 assesses the most reliable, latest available, public and verifiable data. Where possible, data points are the 5 years prior to the reporting year – so for some data points, as far back as 2015 – and with future orientated analysis. 2020 was the most recent year for which complete generation, capacity and emissions data was available for all 50 companies, therefore data up to and including 2020 was used to assess the quantitative indicators in the performance assessment. For other parts of the assessment, the most reliable, latest available public and verifiable data was used.

Each scorecard covers the company named in the scorecard and, where relevant, any subsidiar(ies) which have activities relevant to the ACT electric utilities methodology.

Data was collected in H2 2021. In the first instance from CDP’s disclosure platform where possible, as well as using publicly available sources from databases, company websites, including sustainability and corporate responsibility reports.

Companies were also invited to participate directly in the data validation process by both reviewing data collected to date, and submitting additional information as required during a three-week period, tailored to the date from which the company was contacted with its pre-populated data file, between September and October 2021. Companies are informed that additional data will not be accepted after the three-week window has passed unless explicitly agreed in advance.

All 50 companies were invited to provide additional information; 27 of the 50 provided additional data either through the data validation process or by other means within the time period. Learn more about the companies’ data availability and participation in the data validation process here.

Data availability information

Disclosing company scores

Scores for each company are publicly available, for all stakeholders to access and use:

  • For the performance assessment, at indicator, module and overall score level;
  • For the narrative assessment, at the overall score level;
  • For the trend score, at the overall score level.

Individual company results are presented in the company scorecards. Module-levels rankings are presented in the ‘Ranking’ section of the website.

Methodology development

The ACT electric utilities methodology was developed according to a robust, credible, and replicable process. It was built based on extensive research and outcomes resulting from multi-stakeholder dialogues.

The ACT electric utilities methodology was developed by CDP and ADEME during 2016. ACT methodologies are based on the principles and guidelines of the publicly available ACT Framework.

Consultation process

The ACT electric utilities methodology was developed in consultation with companies and experts in the electric utilities sector. Pilot companies reported against the methodology during a road test and received an ACT pilot assessment and rating privately. Uniper, SSE, AGL, NRG, Enel, Endesa, Engie and EDF participated in this road test. The methodology had input from a Technical Working Group (TWG), Advisory Group, and public consultation which was open in Q2 2016. You can find out more via the ACT initiative website: and about the participating bodies and companies here:

Development process

Feedback from the TWG, Advisory Group, and public consultation informed the direction of the methodology and consultation feedback was considered in the final published version of the ACT electric utilities methodology.


In November 2021, the WBA Electric Utilities ranking, key findings and company scorecards were published online, with the ranking officially launched virtually on 24 November 2021. The draft WBA company scorecard and ACT feedback report was made available to each company in advance to inform them of their ACT rating and mean rating for the 50 companies in the ranking.

Explanatory notes

In both the WBA key findings and company scorecards, the term ‘1.5 °C pathway’ is used to refer to the ‘company benchmark’ pathway. This is the pathway allocated to an individual company from the sector decarbonisation pathway, built on the Sectoral Decarbonisation Approach (SDA) of the Science-Based Targets Initiative (SBTi) using the 2021 International Energy Agency’s Net Zero by 2050

The decarbonisation pathways per region were calculated using:

  1. emissions reduction profiles from Energy Technology Perspectives (ETP) 2017;
  2. 2020 emissions intensities from the World Energy Outlook (WEO) 2020; and
  3. full electric utility sector decarbonisation dates from the IEA Net Zero by 2050 report

The datasets are available here;; This modelling splits the world into 13 geographical regions

You can read more about the application of the sector and company benchmarks and other quantitative benchmarks in the ACT electric utilities methodology:

Other technical notes

All monetary values are expressed in US dollars (US$) using the World Bank’s official average annual USD exchange rates database.