Ethos Foundation and the members of the Ethos Engagement Pool International are founding signatories of the Climate Action 100+ initiative, a five-year, investor-led initiative supported by 225 investors across the globe. Climate Action 100+ will engage the world’s 100 largest corporate greenhouse gas emitters to curb emissions across their value chains, strengthen climate-related financial disclosures, and improve the governance of climate-related risks that may affect companies.
Climate change is now widely recognized as a major risk for long-term investors. In order to safeguard the value of their investments, investors are now joining forces in the Climate Action 100+ initiative to call on the world's 100 largest greenhouse gas emitters to take urgent action to limit their impact and curb global warming.
Implementation of the Paris Agreement
197 countries have signed (and 170 have ratified) the Paris Agreement, which aims to keep the increase in global average temperature to well below 2 degrees Celsius compared to pre-industrial levels. Ethos Foundation, the members of the Ethos Engagement Pool International and the other signatories of the Climate Action 100+ initiative believe that dialogue and cooperation with their investee companies are not only compatible with their obligations as shareholders, but are essential for achieving the objectives set out in the Paris Agreement.
The founding signatories of the Climate Action 100+ initiative have agreed on a common agenda for dialogue with companies. Investors supporting the initiative will call on the most greenhouse gas-intensive companies in their portfolios to take the following measures:
1. Implement a strong governance framework which clearly articulates the board’s accountability and oversight of climate change risks and opportunities;
2. Take action to reduce greenhouse gas emissions across the value chain, consistent with the Paris Agreement’s goal of limiting global average temperature increase to well below 2 degrees Celsius compared to pre-industrial levels;
3. Provide enhanced corporate disclosure in line with the final recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and, when applicable, the sector-specific Global Investor Coalition on Climate Change (GIC) Investor Expectations on Climate Change to enable investors to assess the robustness of companies’ business plans against a range of climate scenarios, including a 2-degrees Celsius scenario.
Website of Climate Action 100+
Final recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
Example of GIC Investor Expectations on Climate Change for utilities sector
