CA100 finds Australian companies not doing enough on short-term targets

October 12th, 2023

Climate Action 100+ said many heavy emitting Australian companies are not doing enough to meet short-term net zero targets despite steady progress in the making of commitments and disclosure.

The campaign group released findings from its latest Net Zero Company Benchmark assessments for 14 Australian heavy emitting ‘focus’ companies ahead of the proxy voting season and upcoming annual general meetings.

The organisation assessed the companies against its updated Net Zero Company Benchmark and found just 7% of Australian focus companies were setting adequate short-term targets to kick start the transition.

It also found the accompanying transition plans lack the quantification or capital allocation to feasibly align them with the Paris Agreement goal to limit warming to 1.5°C.

The assessment also highlighted that many companies were not doing enough to ensure a just transition, needing to improve planning to minimise the impact of decarbonisation efforts on workers and communities.

However, the assessment welcomed steady progress, with 57% of companies now fully disclosing net zero commitments.

The Net Zero Company Benchmark was launched in March 2021 to assess the performance of high-emitting companies on their net zero transition.

The framework assesses companies on nine indicators: net zero greenhouse gas (GHG) by 2050 ambition, long-term (2036-2050) GHG reduction target(s), medium-term (2026-2035) GHG reduction target(s), short-term (up to 2025) GHG reduction target(s), decarbonisation strategy (target delivery), capital allocation alignment, climate policy engagement, climate governance, just transition and TCFD disclosure.

The Australian companies assessed work across the oil and gas, diversified mining and cement industries, including Origin Energy and Woodside Petroleum.

A further 136 assessments covering the rest of the initiative’s focus companies around the world will be published later this month.

Last month, the Australian government reached a landmark settlement that requires them to acknowledge the risk of the climate crisis on sovereign bonds following a class action lawsuit.