June 25, 2024
BCI has been an active participant in Climate Action 100+ (CA100+), the largest investor-led engagement initiative on climate change, since it was formed in 2017. We continue to support this global group and engage with its target companies based on the progress to date.
CA100+ brings together 700 investor signatories from 33 countries, representing more than US$68 trillion in assets under management. It works to ensure that 170 of the world’s largest corporate greenhouse gas emitters take necessary action on climate change.
The fundamental principle of CA100+ is that climate risk is financial risk. Its three main goals are to:
- Improve board oversight of material climate-related issues.
- Reduce greenhouse gas emissions in the real economy.
- Improve corporate climate-related disclosures.
BCI stands out as one of the few large Canadian investors taking a lead role with high emitters through the initiative. During the first phase of CA100+, our public markets team led or co-led engagement with four companies and actively supported engagements with six other companies in the mining, oil and gas, and utility industries in North America. Over that time, we saw many companies make improvements to their climate strategies, governance, and disclosure.
Progress To Date
Through CA100+, global investors have communicated to high-emitting companies the urgency and practicality of making emissions-reduction commitments, as well as the importance of board-level involvement and better disclosure.
The initiative’s 2023 Net Zero Company Benchmark assessment results showed that, while more companies on the focus list have pledged to achieve net-zero emissions by 2050 or earlier, they are not moving fast enough to align corporate actions with the goals of the Paris Agreement.
For example, 77 per cent of focus companies had pledged to achieve net-zero emissions by 2050 or earlier (up from 75 per cent in 2022) and 93 per cent implemented board committee oversight of climate change risks and opportunities (up from 91 per cent in 2022). Still, only 59 per cent disclosed decarbonization actions to meet their greenhouse gas reduction goals. Overall, incremental progress on company ambition and long-term targets was not matched by progress on short-term targets, decarbonization strategy and capital allocation.
Phase 2
Noting that the period leading up to 2030 is critical, CA100+ launched the second phase of its work in June 2023 with a focus on moving from words to action. The three main goals were renewed and evolved, with the third goal updated to include a focus on implementing net-zero transition plans.
BCI remains committed to taking a leadership role and leveraging our influence to support its increased expectations, which align with our Climate Action Plan. BCI currently leads the engagements with Suncor Energy Inc., Canadian Natural Resources Limited and Teck Resources Limited, and contributes to those with Exxon Mobil Corporation, Duke Energy Corporation, The Southern Company, Chevron Corporation, POSCO Holdings Inc., Samsung Electronics Company, Ltd. and UltraTech Cement Ltd. These 10 companies reflect an expansion of our participation to include new sectors and regions.
“We share the heightened sense of urgency with CA100+ and can attest that collaborative engagement is effective. We’re pleased to continue as a lead and contributing investor because we recognize the risk that climate change presents in our portfolio.”
– Jennifer Coulson, Senior Managing Director & Global Head, ESG at BCI
Our work with CA100+ aligns with our commitment to use our influence to support the global goal of net zero by 2050. Read our Climate Action Plan.