US Climate Action 100+ target firms weaken on net zero

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on Responsible Investor or enjoy below:

🗞️ Driving the news: Climate Action 100+’s latest benchmark indicates that more North American companies are weakening their performance on net-zero commitments, while European firms are improving on Just Transition criteria
• The findings highlight uneven corporate progress on climate action among some of the world’s major greenhouse gas emitters

🔭 The context: Climate Action 100+ is an investor-led initiative that engages major corporate emitters on emissions reduction, climate governance and disclosure
• Its benchmark assesses how companies align their strategies and reporting with the transition to net zero
• Just Transition principles focus on ensuring that the shift to a lower-carbon economy considers workers, communities and other affected groups

🌍 Why it matters for the planet: Weaker corporate net-zero performance could signal gaps between climate ambitions and the actions needed to reduce emissions
• Progress on Just Transition, meanwhile, can help make decarbonisation more equitable and socially sustainable

⏭️ What’s next: Investors would need to assess whether declining scores reflect changes in company commitments, implementation or disclosure, and use engagement to address gaps
• The contrast between North American and European results also raises questions about the influence of policy environments, corporate priorities and stakeholder expectations on climate performance

📈 One stat: The benchmark evaluates companies against three core goals: emissions reduction, climate governance and climate-related disclosure

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