Climate Action 100+ has augmented its focus list of companies for engagement, including several new Australian listed companies.
The changes to the Climate Action 100+ means overall nine companies have been added to the list and two have been removed, taking the net rise in companies to 167.
ASX-listed companies Orica, Incitec Pivot and Oil Search have been added to the list, along with Grupos Argos, Grupo Mexico, Petroleos Mexicanos (PEMEX), Saudi Arabian Oil Company (Aramco), UltraTech Cement and Uniper.
"Climate Action 100+ has highlighted the power investors have to meaningfully engage with companies to make the necessary changes that will allow the world to transition to a net-zero future," said Fiona Reynolds, Climate Action 100+ vice chair and chief executive officer of the Principles for Responsible Investment. "Along with governments, the private sector - investors and business -have a key role to play in addressing climate change and driving decarbonisation. Investors are increasing their engagement with companies at a scale and pace that has never been seen before - and it is wielding results."
Wesfarmers has been removed from the list because demergers and asset sales "leave Wesfarmers a substantially different company," Climate Action 100+ said. Mining and metals company Southern Copper was removed from the list and replaced by parent organisation Grupo Mexico.
Climate Action 100+ is a global initiative involving over 500 signatories, including many Australian signatories, responsible for more than USD47 trillion assets under management. The 167 companies on the list are determined to be "a globally significant emitter of greenhouse gases and/or they can play a strategically important role in the transition to net-zero emissions by 2050 or before," according to Climate Action 100+. The aim of engagement is for companies to deliver Paris Agreement-aligned emissions cuts, implement strong climate governance frameworks and improve climate-related disclosures.
"Climate Action 100+ is an investor-driven global collaboration that in a short time has accelerated the capacity for engagement among hundreds of investors, with impressive results," said Laetitia Tankwe, Climate Action 100+ chair. "These additions present a strategic opportunity to further curb emissions and enable the transition to a net-zero future by 2050. We welcome the opportunity to support signatories in these new engagements. Our teams are working with focus companies to identify a pathway to, and design a just transition for, a sustainable future."
Because these nine new companies are only in the early stages of engagement, they will not be subject to the initial round of assessment under the Climate Action 100+ Net-Zero Company Benchmark, to be release next year, but will be included in future assessments/.
The additional companies are in sectors already being engaged through Climate Action 100+ "so as not to overly stretch the focus of the initiative in its first five-year period and to build on practice that has been developed to date," Climate Action 100+ said.
All additions to the focus list have had lead investors assigned to them to spearhead engagement. These lead investors will be assisted by a team of collaborating investors.