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Published March 29, 2023
A coalition of investors has sent letters to 107 companies outlining how they should put net zero transition plans in place.
The letter is part of a project set up by the Institutional Investors Group on Climate Change (IIGCC) to increase the level of engagement among the world’s largest companies with climate change.
The coalition includes 93 investors including Church of England Pensions Board, Schroders and PGGM. The letter was sent to companies in sectors ranging from aviation, agriculture, car manufacturing, chemicals, energy suppliers and consultancies and supermarkets.
The coalition’s letter recommends that recipients publish a Net Zero Transition Plan setting out how they intend to transition to being a net zero company. The transition plan should include four main elements:
1) A comprehensive net zero commitment to reducing emissions to net zero by 2050 or sooner, covering all relevant business areas and all material greenhouse gas emissions scopes (1, 2 and 3).
2) Short, medium and long-term GHG targets aligned with the relevant emission pathway and consistent with limiting the global temperature increase to 1.5C.
3) Disclosure of GHG emissions specifying Scopes 1, 2 and 3 (breaking out material Scope 3 categories), which enables investors to track underlying decarbonisation progress against GHG targets.
4) A credible decarbonisation strategy, which quantifies the actions taken to deliver the GHG emissions targets, including setting out capital expenditure plans and investment in climate solutions where relevant.
The plan is to scale the scheme to cover more companies in the next two years.
Tags Climate Change Net Zero