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To help investors drive engagement with companies to pursue climate action, 2DII provides analysis on companies in the power and automotive sectors that form part of the Climate Action 100+ (CA100+) target group.

CA100+ is an investor-led initiative to ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change. The work of the initiative is coordinated by five regional investor networks: the Asia Investor Group on Climate Change (AIGCC), Ceres, Investor Group on Climate Change (IGCC), Institutional Investors Group on Climate Change (IIGCC) and Principles for Responsible Investment (PRI). It is supported by a global Steering Committee.

As part of CA100+’s Technical Advisory Group, 2DII uses the PACTA methodology to create profiles of individual companies in the power and automotive sectors. The profiles provide a forward-looking, quantitative analysis of the alignment of the company’s assets and investment/production plans with a range of climate scenarios. This helps ensure that CA100+ signatories have access to the most accurate, complete information about company performance against the three goals of the initiative.

Contributions to CA100+’s Net Zero Company Benchmark

Most recently, 2DII contributed to CA100+ Net Zero Company Benchmark on the progress of the world’s largest emitters in their transition to a net zero future. The benchmark reveals that more companies are setting ambitious climate commitments, but no company has fully disclosed how it will deliver on those promises at the breadth and scale necessary to stabilize the climate and achieve the goal of the Paris Agreement to limit global temperature rise to no more than 1.5 degrees Celsius. For instance, while half of the companies assessed have set net zero emissions by 2050 commitments, only eight have disclosed comprehensive short-term 2025 targets.

In order to develop the benchmark, CA100+ assessed companies across nine key indicators, including net-zero greenhouse gas (GHG) emissions by 2050 (or sooner) ambition, long-term (2036-2050) GHG reduction target(s), and decarbonization strategies. In addition to these benchmarks, 2DII provided insights on the company alignment assessments in the power and automotive sectors. As 2DII’s analysis and the CA100+ Benchmark shows, the vast majority of companies in these carbon-critical sectors are still not aligned with the Paris Agreement goals, underscoring the need for these firms to improve their climate action and transparency efforts.

Access the full benchmark here.

For a full overview of the methodology, see here.

Previous work: Joint report with Institutional Investors Group on Climate Change (IIGCC) on the auto industry

In 2020, 2DII published a joint report with IIGCC finding that that no single production plan of 14 leading auto companies was fully aligned with the goals of the Paris Agreement. The report, Changing Gear: Alignment of major auto manufacturers with the goals of the Paris Agreement, assesses the production plans for the 14 biggest global car companies by emissions – covering electric (EV), hybrid and internal combustion engine vehicles. Its findings, based on modelling of vehicle emissions and climate scenarios from the International Energy Agency (IEA), showed none were aligned with climate scenarios consistent with limiting warming to below 2°C, let alone well-below 2°C, as goals of the Paris Agreement.

Read the full report here.

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