Climate Action 100+ (CA100+) has launched the second phase of its initiative, shifting its focus from corporate climate-related disclosure to the implementation of corporate climate transition plans.
CA100+, the largest investor-led climate engagement initiative in the world, recently completed the first phase of its engagement process, which involved pushing global companies to set robust net-zero targets. 75% of CA100+ focus companies now have net-zero commitments in place, compared to just five at the initiative’s outset.
This new phase, which will run until 2030, intends to support a “global scale-up in active ownership,” encouraging asset owners to call on companies to produce long-term, credible transition plans.
Signatories will be asked to align with new CA100+ core goals, which involve asking portfolio companies to implement a strong governance framework which “clearly articulates the board’s accountability and oversight of climate change risk.”
Investor members will also be expected to call on companies to actively reduce greenhouse gas (GHG) emissions, publish transition plans, and engage with policymakers to address the sectoral barriers to transition.
CA100+ has introduced new ‘lead sector investor’ and ‘lead thematic investor’ categories, to help support signatories to engage with specific sectors and on specific themes.
Signatories will be expected to submit annual schedules of engagement, specifying actions and escalation strategies they intend to deploy. Investors will also be expected to disclose votes and rationales on CA100+ flagged votes, where in line with signatories’ own internal policies and business objectives.
“Phase two is the time to demonstrate the additionality of the initiative, and to work with our investor signatories to support an orderly, just transition for their focus companies,” Francois Humbert, lead engagement manager at Generali Insurance Asset Management, said in a press release. “Additional expected transparency in our practices will ensure greater accountability. In addition, the new sector and thematic engagements will enable signatories to bring additional value inside their engagement groups and to the companies they engage.”