CRITERIA FOR BUSINESS ENGAGEMENT

Climate Transition Plans:

• In line with IPCC pathways that limit warming to 1.5°C, based on established methodologies

• Outline plans or moratoriums to avoid any involvement in the expansion of fossil fuels

• Include specific targets aimed at ending the use of and/or support for fossil fuels in line with IPCC pathways that limit warming to 1.5°C with no or limited overshoot

• Based on direct absolute emission reductions

• Include climate risk analysis including physical and transitional risk

• Outline how plans align with a just transition and human rights

• Outline how plans address biodiversity impacts

• Provide details of resources and finance needed to deliver transition plans, in particular near term targets

• Makes assumptions clear and acknowledge data gaps

Targets:

• Align with IPCC emission pathways that limit warming to 1.5°C with no or limited overshoot

• Disclosure of level of reliance on offsets and carbon removals, in particular through to 2030, with a commitment to prioritize immediate and direct emission reductions

• Specifically commit to reduce emissions in absolute terms

• Address Scope 1, 2 and 3 emissions

• Include all GHG emissions

• Specific targets to move to 100% renewable energy

• Provide details of near-term and long-term targets including 2025, 2030, and 2035

• Include all jurisdictions and all operations across the value chain

• Address financed emissions

• Makes assumptions clear and acknowledge data gaps

Governance:

• Public climate commitments made by leadership

• Integration of climate targets with remuneration and wider policies

• Align business government engagement activities with climate commitments

• Climate expertise among board members and leadership

Reporting:

• Evidence of transparent, independently verified climate reporting based on established methodologies

• Disclosure of pathways used and any assumptions made

• Annual disclosure on progress against targets including material changes, deviations from targets, and detailed proposals to address any deviations

Engagement:

• Stakeholder engagement plan to engage and support suppliers, consumers, employees with climate action and value chain decarbonisation and evidence of collaboration with peers

• Climate considerations within client and customer selection policies

• Climate considerations within procurement policies

Advocacy:

• A commitment to not lobby against climate related policy directly or through trade associations and track record of same

• A commitment to lobby and leverage influence for necessary climate action

For some sectors, further information will be sought that reflects the material issues and impacts caused by that sector’s activities, including:

Financial Institutions:

• Disclosure

  • Disclosure of financing volumes and financed emissions both in relative and absolute terms

  • A breakdown by activity for fossil fuel sectors

• Commitments

  • Commitment to cease financing for any new fossil fuel projects or for expansion of existing projects including asset financing and related infrastructure

  • Restriction of finance to companies that are highly exposed to fossil fuels and fossil fuel decline

• Coal

  • Include an immediate end of lending, underwriting, and investments in any company planning new coal infrastructure, power plants, and mines

  • Policies to phase out coal must include commitments to end financial and advisory services and include a just transition plan for workers

• Oil and Gas

  • Oil and gas phase-out policies must include a commitment to end financing and investing related to exploration, expansion, and production activities

• Diversification

  • Development of investment products aligned with 1.5ºC, that facilitate increased investment in renewable energy

  • Practical examples of efforts to fund near term decarbonisation and to support the financing of transition goals in developing markets

• Wider Issues

  • Policy of not investing or financing businesses linked to deforestation

  • Account for nature dependencies, and anticipate forthcoming guidance

  • Established FPIC (Free Prior Informed Consent) policies

  • Voting strategies that align with climate transition plans

PR/Advertising

Client Disclosure Report and commitment to not work with fossil fuel clients or their enablers with no credible transition plan

Consultancy

Client Disclosure Report and commitment to not work with fossil fuel clients or their enablers with no credible transition plan

Insurance

• Commitment to end or restrict underwriting for new oil, gas, and coal projects

• Phase out, in line with a credible 1.5ºC pathway, insurance for coal, oil and gas companies.

Media / Social Media

• Climate Misinformation and Disinformation Policies

• Commitment to ban fossil fuel advertising

Must have:

• Proven efforts to minimize emissions across value chain

• Assigned responsibility for climate action within the business

• A commitment to not lobby against climate related policy directly or through trade associations and a track record of same

• A commitment to lobby and leverage influence for necessary climate action

• Companies whose primary function is fossil fuel supply and/or production and/or development of new fossil fuel infrastructure unless those companies have stopped expansion and committed to an equitable managed decline in line with 1.5C

• Companies who play an active role in funding new fossil fuel infrastructure

• Companies who are campaigning against strong climate policy

• Companies whose primary function involves established and recognised exclusion activities

• Companies whose activities have been identified as directly promoting the increase of further fossil fuel supply and production

• Companies whose primary function is the provision of unproven technologies that have been used to excuse fossil fuel expansion including carbon dioxide removal, carbon capture and storage, geoengineering, or carbon offsetting activities and products