The Climate Action Steering Committee is writing to 161 CEOs and Chairs of the Board for the world’s largest greenhouse gas (GHG) emitting companies, calling on the businesses to put in place net-zero business strategies and define targets to support delivery. The letters also inform CEOs that companies will be assessed on progress made in becoming net-zero businesses.
The initiative, involving over 500 global investors with over $47trn in assets, aims to assess company progress in line with net-zero transition against 30 indicators. Signatories include Allianz, AXA, Munich Re and Ping An.
Launched in December 2017, Climate Action 100+ looks to support 161 focus companies, that are systemically important to the global transition to net-zero emissions, in their efforts to align their business strategies with the goals of the Paris Agreement. The companies engaged through the initiative are collectively responsible for up to 80% of global industrial greenhouse gas emissions.
The letter shared with executives acknowledges and underscores the welcome progress seen to date from companies. However, it also highlights the importance of greater action, in accelerating emissions reductions in achieving net zero emissions and preventing the devastating impacts of otherwise avoidable climate change.
The letter makes clear the need for companies to achieve net-zero emissions by 2050 or sooner, cover emissions across the full value chain and define related targets and goals to deliver emission reductions in line with the science on limiting global warming to 1.5°C.
“Investors and their beneficiaries are becoming increasingly vocal and demanding more tangible climate action on the part of companies, especially those that are high emitters of greenhouse gases,” Fiona Reynolds, CEO of the Principles for Responsible Investment (PRI) and Climate Action 100+ Steering Committee member, said in a statement. “Central to achieving climate goals is the setting of clear targets on how companies plan to move to net-zero as well as ensuring that they are transparent and held accountable for actions taken.”