The group Climate Action 100+ has sent a letter sent to CEOs and chairs from 161 global companies calling for the firms to commit to net-zero business strategies or face pressure at their AGMs.

The letter shared with executives acknowledges and underscores the welcome progress seen to date from some 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.

This is reflected in the call for companies to come forward with net-zero business strategies, where they are yet to do so, set out in the letter or face pressure. Climate Action 100+ warns: “Outcomes of the analysis and responses of CEOs will also inform investor engagement strategies through Climate Action 100+, particularly for unresponsive or poorly performing companies. Where relevant, this will include shareholder activity for the 2021 annual general meeting season.”

Companies will be monitored using the newly developed Climate Action 100+ Net-Zero Company Benchmark, that has been designed to standardise what constitutes a ‘net-zero aligned’ business strategy and how to measure alignment with a 1.5C transition pathway. The benchmarking provided through the initiative provides guidance for companies to identify the path that is needed to address this issue in their respective sectors and regions.

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