2024年行動框架-評估向低碳排放的過渡報告 ACT FRAMEWORK Assessing the transition towards low GHG emissions

ACTFramework

page

1

|ACTInitiative|Version2.0|

ACTFRAMEWORK

AssessingthetransitiontowardslowGHGemissions

V20-November2024

ACTFramework

page

2

|ACTInitiative|Version2.0|

ACKNOWLEDGMENTS

WorldBenchmarkingAllianceandADEMEwarmlythank:

◆stakeholdersinvolvedduringthedevelopmentprocess(togettov1.1oftheACTFramework)

◆stakeholdersinvolvedduringtheupdateprocess(togettov2.0oftheACTFramework),including

orespondentstothepublicconsultationholdinSeptember2024

omembersoftheAdvisoryGroup

METHODOLOGYVERSION

DRAFT(V0.1)

V1.1

V2.0

DATE

September2016

March2019

November2024

TECHNICAL

COORDINATION

ADEME–CDP

ADEME-WBA

LEADAUTHORS

EstherStoakesJohnHekman

LukasBrochardPedroFaria

RomainPoivet

ThomasGourdon

EdouardFourdrin

EstherStoakesPedroFaria

RomainPoivet

CynthiaSouaid

LauraHurtado-Verazaín

MarlèneDreschMaximSinclairRomainPoivetYannRosetti

TECHNICALASSISTANCE

/

Carbone4

Icare&ConsultEco2Initiative

/

ACTCO-FUNDER

ADEMECDP

ADEMECDP

WorldBenchmarkingAlliance

SUPPORTER

ADEME

ADEME

WorldBenchmarkingAlliance

QUALITYASSURANCEANDQUALITYCONTROL

ClimateCHECK

/

?WorldBenchmarkingAllianceandADEME2024.ReproductionofallorpartofworkwithoutlicenceofusepermissionofWorldBenchmarkingAllianceandADEMEisprohibited.

ACTFramework

page

3

|ACTInitiative|Version2.0|

Tableofcontents

TABLEOFCONTENTS 3

1.INTRODUCTION 5

2.ACTASSESSMENTFRAMEWORK 7

2.1.ASSESSMENTPRINCIPLES 7

2.2.PREREQUISITES 8

2.3.GUIDINGQUESTIONSANDLOW-GHGEMISSIONSALIGNMENT 9

2.4.SCOPEOFACTIVITIES 10

2.5.INPUTSREQUIRED 11

3.ACTSCORINGSTRUCTURE 13

3.1.PERFORMANCESCORE 14

3.1.1.OVERVIEWOFACTMODULESANDINDICATORS 14

3.1.2.QUANTITATIVEINDICATORS 18

3.1.3.QUALITATIVEINDICATORS 18

3.1.4.MODULEANDINDICATORWEIGHTING 18

3.2.NARRATIVESCORE 21

3.2.1.PURPOSEANDAPPROACH 21

3.2.2.GUIDANCETONARRATIVESCORING 21

3.3.TRENDSCORE 25

3.3.1.PURPOSEANDAPPROACH 25

3.3.2.GUIDANCETOTRENDSCORING 25

3.4.ASSESSMENTOFTRANSITIONENABLERS 27

3.5.ACTCOREMETHODOLOGY 29

4.ASSESSINGGHGEMISSIONSREDUCTION 31

4.1.FRAMEWORKSANDSTANDARDSTOBEUSED 31

4.2.SCOPE2ORINDIRECTEMISSIONSFROMIMPORTEDENERGY 32

4.3.SCOPE3OROTHERINDIRECTEMISSIONS 33

4.4.CARBONCREDITSANDOFFSETS 33

4.5.BEYONDVALUECHAINMITIGATION 34

4.6.AVOIDEDGHGEMISSIONS 35

5.GHGEMISSIONSREDUCTIONPATHWAYS 37

5.1.GHGEMISSIONSBOUNDARIES 37

5.2.CRITERIAFORSECTORALORGLOBALCLIMATESCENARIOSANDPATHWAYS 38

5.3.REGIONALPATHWAYSANDSECTORALTRANSITIONPLANS 39

5.4.ALLOCATIONMETHODS:FROMGLOBALORSECTORALTOCOMPANYLEVEL 40

ACTFramework

page

4

|ACTInitiative|Version2.0|

5.5.ACTUSEOFGHGEMISSIONSREDUCTIONPATHWAYS 40

6.ACTASSESSMENTOUTPUTS 43

6.1.USESOFACTASSESSMENTMETHODOLOGIES 43

6.2.FEEDBACKREPORT 44

6.3.THIRD-PARTYVERIFICATION 45

6.4.COMMUNICATIONRULES 46

6.5.RESOURCESPROVIDEDBYTHEACTINITIATIVE 47

7.SOURCES 48

8.GLOSSARY 50

9.APPENDIX 58

9.1.FRAMEWORKDEVELOPMENTANDUPDATEHISTORY 58

9.2.MATURITYMATRICESANDGUIDANCEFORNARRATIVESCORING 59

9.3.MAPPINGACTWITHDISCLOSUREFRAMEWORKS 68

ACTFramework

page5

|ACTInitiative|Version2.0|

1.Introduction

Overthepast20years,greenhousegas(GHG)emissionsaccountinghasgonefrombeingavoluntarypracticebyorganisationsmindfuloftheirclimateimpacttobecomingregulatoryrequirementsthatincludepublicdisclosure.SincethelaunchoftheScienceBasedTargetsinitiative(SBTi)in2015,morethan5,000companieshavesetscience-basedtargets,whichincludemorethan3,200net-zerocommitmentsasofJune2024.TheAccelerateClimateTransition(ACT)Initiative-formerlyAssessingLow-CarbonTransition-wasalsolaunchedin2015,topioneertheconceptandassessmentofcorporatelow-carbontransitionplansandactionstoholdorganisationsaccountable.Followingthepilotphaseuntil2017andsubsequentdevelopmentphasesuntil2022,ithasevolvedintothemostcomprehensiveassessmentframeworkforreal-economyclimatestrategiesandtransitionplans(1).TheACTFrameworkalignswiththefiveprinciples-ambition,credibility,equity,integrity,transparency-oftheUnitedNationsSecretary-General(UNSG)High-LevelExpertGrouponNetZeroEmissionsCommitments(2).

DrawingfromtheexpertiseofCDPandtheFrenchAgencyforEcologicalTransition(ADEME),theACTInitiativeadoptsaforward-looking,holisticapproachtocorporateclimateaccountabilityandmanagementpractices,providingthenecessarymethodologiesandtoolsreadytodeliveractionableinsights.TheACTmethodologiesanalysetheambitionlevelsofcompanies’strategiestotransitionandactionsagainstGHGemissionsbenchmarksandotherrelevantelements.TheWorldBenchmarkingAlliance(WBA),sinceitsfirstAutomotiveBenchmarkin2019,hasbeenakeystrategicpartnerindisseminatingACTassessmentresultsandinspiringactiontowardstransitioningtolowerGHGemissionsglobally.In2022,thestewardshipoftheACTInitiativewastransferredtoWBA.

Despitetheincreasingnumberofnet-zerocommitmentsandtheproliferationofframeworks,globalemissionsofcarbondioxide(CO2)andotherGHGs,suchasmethane(CH4)andnitrousoxide(N2O),haveyettoreachtheirpeak.Inthemeantime,theconsequencesofclimatechangeareclear:

Thehigherthemagnitudeofclimatechange,themoredramaticthefutureimpactswillbe.TheIntergovernmentalPanelonClimateChange(IPCC)hasclearlyhighlightedthehugegapinexpectedimpactsbetweena2°Canda1.5°Cworld(3),thelatterbeingtheaspirationaltargetsetbytheParis

Agreement.DrasticactionisrequiredtoreduceemissionsinthisdecadetokeepthegoalsoftheParisAgreementinreach.IPCCwarnsthatGHGemissionsmustpeakbefore2025andbereducedby43%by2030tolimitwarmingto1.5°Cwithlimitedovershoot.

Thedegreeofactiontakennowandintheneartermwillbeamajorfactordeterminingthecostsofthetransition.Consideringthattheestablishmentofgloballyaligned,impactfulgovernmentregulationsishighlyunlikelyinthenearterm,companies’initiativesandtheirvoluntaryshifttowardslow-GHGemissionsbusinesseswillbekeyinachievingtherequiredchange.Thedegreeofvoluntarycommitmentalsoprovidesinsightsintotheoverallbusinesscommitmenttotransitioning.TheACTassessmentmethodologiesanalysethiscommitmentbyassessingthepresenteffortsandcapacityofcompaniestotransition.

MeasuringtheabilityofcompaniestotransitiontoalowGHGemissionseconomyrequiresanunderstandingofhowdecarbonisationisembeddedintheirbusinessstrategies.Tohelpcompaniessetdecarbonisationtargetscompatiblewithwell-below2°Cor1.5°Cclimatechangescenarios,variousallocationmethodshavebeendevelopedtodefinetheirrequiredcontributiontosectoralorglobaleffortstomitigateGHGemissions.

WhiletheseallocationmethodsgiveaGHGemissionsreductionrateandtarget,theACTmethodologiesemployaholisticapproach,takingintoaccountallfeasiblequantitativeandqualitativeindicatorsthatprovideinsightregardingacompany’scurrentandfutureabilitytoreduceitsGHGemissionsandmaximiseitscontributiontothelow-GHGemissionstransition.Allindividualindicatorscoresareconsolidatedintoone

ACTFramework

page

6

|ACTInitiative|Version2.0|

overallscore,whichprovidesanoverallmetricofthecompany’salignmentwithalow-GHGemissionseconomy.Ultimately,thegoalistoprovidecompanieswithspecificfeedbackontheirGHGemissionsalignmentinboththenearandlongterm.Oncetheoutcomesaremadepublic,ACTassessmentsalsobecomeasourceofinsightstoallstakeholdersinvolvedinthecorporatelowGHGemissionstransition.

Whileinitiallyfocusedonclimatemitigationandsectorswithhigh-GHGemissions,theACTInitiativewilladdressawiderrangeoftopicsfrom2025onwards,suchasbiodiversity,climateadaptationandthefinancialsector.Itisworthnotingthat,whiletheframeworklaidoutinthisdocumentrelatestoACTassessmentmethodologiesspecificallydedicatedtoclimatemitigation,theprinciplesandguidanceitdeliversalsoinspireotherACTmethodologies.

ACTFramework

page7

|ACTInitiative|Version2.0|

2.ACTAssessmentFramework

TheACTFramework,presentedinthisdocument,isanassessmentframework,whichoutlinesthepathforallACTassessmentmethodologiesdedicatedtoclimatemitigation.Itidentifiesthemostrelevantindicatorsforassessingacompany’sclimateimpact.ACTassessmentmethodologies,developedfollowingasectoralapproach,buildontheACTFrameworktoensuretheconsistentapplicationofallACTprinciplesacrossdifferentsectors.

TheACTFramework(andconsequentlytherelatedmethodologies)assessesacompany'stransitiontoalow-GHGemissionseconomy.Thisincludesbothplansandactionstotransition,andtheconcreteresultsofthese.

ACTassessmentmethodologiesholdcompaniesaccountablefortheirclimateimpact,byassessingvariouscomponentsoftheirtransition,including:

◆PastandforecastGHGemissionsperformance

◆ClimategoalssuchasGHGemissionsreductiontargets

◆Credibilityandconsistencyoftransitionplans

◆Risksandopportunities

ThefollowingsectionsintroducetheACTassessmentprinciples,theprerequisitescompaniesneedtomeet,andtherequiredcomparisonofcompanies’activitieswiththescopeofactivitiesconsideredintheACTassessmentmethodologiestoensureinsightfulassessments.ItalsopresentstheguidingquestionsstructuringACTassessmentsaswellastheinputsthatarerequired.

I2.1.Assessmentprinciples

Applicationofprinciplesisfundamentaltoensuringthatinformationrelatedtothelow-GHGemissionstransitionistrueandfair.Theseassessmentprinciples,presentedin

Table1,

aredesignedtoguideanACTassessmentandshouldbeusedbyassessorstoshapetheirdecision-making.Theprinciplescovermultipleelementsofanassessment,includinghowdatashouldbeselected,howitshouldbeusedandwhatsortofassumptionsarejustifiable.ApplicationoftheseprincipleswillallowforimprovedconsistencyacrossACTassessments.

Table1:ACTassessmentprinciples

RELEVANCE-Themostrelevantinformationshouldbecollected(regardingcorebusinessandstakeholders)toinformthevariouscomponentsofthelow-GHGemissionstransitionassessment.

VERIFIABILITY-Thedatarequiredfortheassessmentshouldbeverifiableandreflecttheoverallcredibilityofthecompany’stransitionplan.

AMBITION-Thedatausedfortheassessmentshouldreflectthecompany’scontributiontoa1.5°Cscenariowherepossible,ortoawell-below2°C(comparedtopre-industriallevels)astheminimumrequiredeffort.

CONSERVATIVENESS-Anyassumptionsthatmustbeusedshouldreflectthecompany’scurrentperformanceandshouldnotoverestimateprogressorimprovementsifsupportingevidenceisnotavailable.

CONSISTENCY-Whenevertimeseriesdataisused,itshouldbecomparableovertime.

DIRECTIONOVERTIME-Theassessmentshouldenabletheevaluationofnear-andlong-termperformance,toensurebothimmediateimpactofcompanyactionsaswellasthecontinuityoftheoverallcompanystrategyandlong-termvision.

Note:TheAmbitionprinciplebuildsontheParisAgreementGoal:“ThisAgreement[…]aimstostrengthentheglobalresponsetothethreatofclimatechange[…]byholdingtheincreaseintheglobalaveragetemperaturetowellbelow2°Cabovepre-industriallevelsandpursuingeffortstolimitthetemperatureincreaseto1.5°Cabovepre-industriallevels[…]”.

2.2.Prerequisites

Truetothemaxim,‘Youcan’tmanagewhatyoudon’tmeasure’,itisessentialforcompaniestoestablishaccurateGHGaccountingpracticestoenableameaningfulACTassessment.TheACTmethodologiesrequirecompanies’GHGemissionsdataforthefiveyearsprecedingthereportingyear,toensureaninsightfultrendanalysisofpastperformance.Trendsbasedonshortertimeseriesarehighlysusceptibletoskewinginthecaseofexceptionalyear

s1.

Afive-yeartimeseriesisconsideredaneffectivecompromise,allowingcompaniestoretrievetherequireddata.Moreover,anychangeofmethodologyorscopeofactivitiesincompanycalculationsofGHGemissionscouldhinderanaccuratetrendanalysis.CompaniesarethereforeencouragedandexpectedtocalculatetheirGHGemissionsforatleastthefiveyearsleadinguptothereportingyearinaconsistentmanner.

1TheimpactoftheCOVID-19pandemiconglobalandprivatesectoremissionsisarecentandhighlyrelevantexample.

ACTFramework

page

8

|ACTInitiative|Version2.0|

IthasbecomeclearthatmanycompaniesthatreporttheirGHGemissionsarestillnowhereclosetohavingarobusttransitionplan.Forthisreason,theACTInitiativehasdevelopedtheACTStep-by-Step(ACT-S)methodology,withtheobjectiveof‘providingguidanceandsupportforcompaniestoprepare,structureandimplementtheirdecarbonisationstrategies’(4).TheACT-Smethodologyproposesalongprocess,typicallylasting1-1.5years,enablingthecompanytodeveloparobustandcredibletransitionplanandstarttakingactionstodecarboniseitsbusinessandvaluechain.

ACTassessmentmethodologiesdedicatedtoclimatemitigation,coveredbytheACTFrameworkinthisdocument,aremoreapplicabletocompaniesmeetingtheprerequisiteslistedin

Table2.

Withouttheseprerequisitesbeingmet,onecanexpectpoorACTscores,asiscommonlyobservedincompaniesassessedsolelyonpublicdatawithlimiteddisclosure(seechapter

6)

.

Note:TheACTAdaptationmethodology(dedicatedtoclimatechangeadaptation)releasedin2023

2

andtheupcomingACTBiodiversitymethodologydonotfallwithinthescopeofthisACTFramework.

Table2:ApplicationofACTmethodologiesacrosscompanytypes

ACTmethodologyTargetedcompaniesPrerequisite

ACTStep-by-Step

Climatebeginners

Smallandmedium-sizedenterprises(SMEs)andmid-capcompanies

CompleteGHGemissionsinventorycarriedoutwithinthelasttwoyears

ACTassessmentmethodologies

CompaniesdisclosingatransitionplanLargercompanies

CompleteGHGemissionsinventoriesforthelastfiveyears

Existenceofaplantotransitiontoalow-GHGemissionseconomy.

2.3.Guidingquestionsandlow-GHGemissionsalignment

TheACTFrameworkintroducesfiveguidingquestionsasafoundationforthedevelopmentofACT

assessmentmethodologiestoensureconsistentACTscoresacrosssectors.Thesequestions,presentedin

Figure1,

areconsistentlyfollowedinthedevelopmentofallACTassessmentmethodologie

s3.

Theyaimtocoverthefollowingkeypoints:

◆Q1:Whatisthecompanyplanningtodo?

Targetsareoneofthefundamentalindicatorsofcompanies’readinessforthetransition.Boththeambitionandtimehorizonoftargetsareimportantparameterstoconsider.

◆Q2:Howisthecompanyplanningtogetthere?

Thetransitionplanshouldcoverbothwhatisunderdirectcontrolofthecompanyandtheaspectsthatthecompanycaninfluenceindirectly,suchasimpactsonthevaluechain,policyorregulations.

2SeeACTwebsite

dedicatednews

3AnexceptionhasbeenmadefortheACTFinancemethodologies(BankingandInvesting),duetotheirsectoralspecificitiesrenderingsomeoftheperformancemodulesandindicatorsirrelevant.

ACTFramework

page

9

|ACTInitiative|Version2.0|

ACTFramework

page

10

|ACTInitiative|Version2.0|

◆Q3andQ4:Whatisthecompanydoingatpresent?Whathasthecompanydoneintherecentpast?

Pastandpresentactionsnotonlydeterminehowmuchthecompanystillhastodo,butalsohowcredibleitistoexpectthatitwillachieveitsgoal.

◆Q5:Howdoalloftheseplansandactionsfittogether?

Consistencybetweenpastandcurrentperformanceofthecompany,itsambition,targetsanddedicatedmeansforthefuture,helpsunderstandifthecompanywillsucceedinbeingprofitableinalow-GHGemissionseconomy.

Questions1-4illustratethetransitionofcompaniestoastatethatisalignedwithalow-GHGemissionseconomy.Basedonthecompany’sdisclosedcommitment(Q1),ACTassessmentshighlighttheassociatedmeansthatthecompanywilldeploy(Q2)andthosethatarealreadyinplace(Q3,Q4),andsubsequentlyvalidatetheconsistencyandcredibilityofthecompany’stransitionplan(Q5).

Figure1:ACTFrameworkguidingquestions

ACTassessmentmethodologiesdefinean‘alignedstate’whichbroadlyprovidestheanswerstothesefiveguidingquestionsforatypicalcompanythatissuccessfullytransitioningtolowerGHGemissions.Theseanswersconsidersector-specificelementswhererelevantandreflectthevariousactivitiesandcompanyprofilesthataredefinedintheACTassessmentmethodologies.

2.4.Scopeofactivities

ACTassessmentmethodologiesarebuiltatthesectorallevel,toassesscompaniesthatbenefitfromsimilarleverstotransitiontolowGHGemissionsand/orarepartofthesamevaluechain.Thissectoralapproachenables,amongstotherthings,buildingGHGemissionsreductionpathwaysatthecompanylevelfromasectoralscenario(seesection

5.4)

.

ForeachsectorcoveredbytheACTassessmentmethodologies,thescopeofactivitiesthatcanbeassessedandtheboundariesofGHGemissionsthatareconsidered,firstintheperformanceindicatorsrelyingonGHGemissionsreductionpathwaysandsecondinotherplacesofthemethodology,aredefined.

ACTFramework

page

11

|ACTInitiative|Version2.0|

Scopeofactivities

ACTassessmentmethodologiesprovideanoverviewofthesectoralvaluechainanddefinetheactivitiesthatareconsideredintheassessment.Amappingagainstinternationallyacknowledgedclassifications,suchastheStatisticalClassificationofEconomicActivitiesbytheEuropeanCommission(NACEcodes)(5),theInternationalStandardIndustrialClassificationofAllEconomicActivities(ISIC)bytheUNStatisticsDivision(6),andtheActivityClassificationSystem(ACS)bytheCDP(7),aidstheidentificationofrelevantactivities.Whererelevant,variouscompanyprofilesaredefinedtoreflect,asbestaspossible,sub-sectoralspecificitiesandfine-tunetherelativeimportancegiventoelementsembeddedintheACTassessment.

ThesetofassessmentmethodologiesproposedbytheACTInitiative,evolvingovertime,doesnotallowfortheassessmentofallcompanies.Manycompaniesdonotfallinthescopeofsectoralactivitiescoveredbytheavailablemethodologies.Toensurethatasmanycompaniesaspossiblecanbeassessed,theInitiativehasdevelopedanACTGenericmethodology,whichdoesnotincludesector-specificelements.Thisgenericmethodologyisbasedonaflexiblestructure,owingtoaweightingperformanceschemethatisdependentontheemissionsprofileofthecompany.Thisway,itispossibletoassessverydifferentcompaniesusingasinglemethodology.

Someintegratedcompaniescovervarioussectors,forinstance,withdifferentbusinessunitscontrolledbythesamegroup.A

technicalnote

hasbeenreleasedbytheACTInitiativetoclarifytheruleswhendealingwithsuch‘multi-activity’companies,regardingthescope,whichactivitiesorbusinessunitstocoverandhow

toaggregateseveralACTscores(8).

Inanutshell,anACTassessmentisconductedoneachrelevantbusinessunitusingtherelevantACTmethodology(sectoralorGeneric).RelevancyisbasedonGHGemissionsandrevenues.SomemodulesoftheACTperformancescore(seesection

3.1)

maybescoreddirectlyatgrouplevelandfeedthebusinessunitassessment(e.g.Module1:Targetifatargetissetatgrouplevel,Module5:Management,Module8:Policyengagement).Ifdeemedrelevant,eachbusinessunitgetsitsownnarrativeandtrendscore,nexttothescoreatgrouplevel.Thegroup’sACTperformancescoreisaconsolidationoftheperformancescoresofthebusinessunits,basedontheircontributiontothegroup’stotalrevenue.

2.5.Inputsrequired

Tocarryoutacompany-levelassessment,manydatapointsneedtobecaptured,andtheycanbegatheredfromvarioussources.DependingonhowtheACTassessmentmethodologiesareused(seesection

6.1)

,

theyrelyondatathatiseitherpublishedpubliclyorprovidedonavoluntarybasisbycompanies,inadditiontoexternaldatasources.

PublicdataispreferredwheneveritcanserveanACTassessment,regardlessoftheuseoftheACTassessmentmethodologies.Datapublishedbycompaniesisavailabletoanystakeholder–whetherornottheyareinvolvedintheACTassessmentprocess–makingiteasiertoverifythaninternalorconfidentialdocumentation.

ACTanalysesandscoresarebasedontheconsiderationofthecompletesetofinformationdrawnfromrawcompanydataorindicators.Indicatorsmaybereporteddirectlybycompaniesorcalculated,modelledandderivedfromvariousdatasourcesprovidedbythecompany.FollowingtheVerifiabilityprinciple,preferenceshouldbegiventodatathatisverifiedorverifiable.Thisisdatathatisconfirmedtobetrueorcapableofbeingproventruethroughevidence(seechapter

8)

.DatasourcesrequestedbyanACTmethodologymaybequantitativeorqualitative.

DatacollectionrequirementsshouldbedrivenbytheACTassessmentprinciples(see

section2.1)

butalsobypracticalconsiderations.Forinstance,whendecidingbetweentwometric

s4,

itmaybenecessarytochoose

onewhichismorewidelyadoptedwithinanindustry,eveniftheotherismorerelevanttotheprojectrequirementsbutlesscommonlyused.Variousstandardsandguidanceforcalculatingandreportingemissionsdatacanbeconsidered,suchasthoseissuedbytheInternationalOrganizationforStandardization(ISO)orbyindustryassociations(e.g.theIpiecafortheOilandGasindustry).

TheACTassessmentmethodologieslistthedatathatisrequiredtoscoreperformanceindicators.AmappingagainstCDP’sup-to-dateClimateChangesectoralquestionnaireisproposed,toeasethedatacollectionprocessforcompaniesreportingtoCDP.TheACTInitiativealsoprovidesamappingoftheACTassessmentmethodologieswithregulatoryandvoluntarydisclosureframeworks(seeAppendix

1.1)

,suchas:

◆TheEuropeanSustainabilityReportingStandards(ESRS)E1Climatechange,whichwillbeusedbycompaniestocomplywiththeEU’sCorporateSustainabilityReportingDirective(CSRD)

◆TheUSSecuritiesandExchangeCommission’s(SEC’s)ClimateChangeDisclosureRules

◆TheUK’sTransitionPlanTaskforceDisclosureFramework

AlargeshareofthedatathatisrequiredforanACTassessmentisthuseasytoaccessforcompaniesdisclosingunderoneormoreoftheframeworksmentionedabove.

4E.g.gramsofCO2perpassengertimeskilometre(gCO2/p.km)orgramsofCO2perkilometre(gCO2/km),formanufacturersofvehiclesdedicatedtopassengerstransportation

ACTFramework

page

12

|ACTInitiative|Version2.0|

ACTFramework

page

13

|ACTInitiative|Version2.0|

3.ACTscoringstructure

Asdisplayedin

Figure2,

theACTscorecomprisesofthreecomponents:

◆Aperformancescore

◆Anarrativescore

◆Atrendscore

ThesecomponentsarerepresentedwithintheACTscoreasfollows:

a.Performancescoreasanumberfrom0(lowest)to20(highest).

b.NarrativescoreasaletterfromE(lowest)toA(highest).

c.Trendscoreasthesymbol‘+’forimproving,‘-‘forworseningor‘=’forstable.

Figure2:ACTscorecomponents

Theperformancescoreisameasureofthealignmentofthecompany'stransitionwithsectoralexpectationsfordecarbonisation,andgenericelementsincludinggovernanceandengagementstrategyalignedwiththetransitiontoalowGHGemissionseconomy.

Thenarrativescoreisaqualitativeassessmentoftheoverallcoherence,completenessandqualityofthecompany’sstrategytotransition.Itcomplementstheperformancescorebyassessingpotentialriskstothecompany’stransitionanditsreliability.Thenarrativescoreallowstheassessortotakeamoreholisticviewofthecompany'stransitionandtheconsistencyofitstransitionplan.

Thetrendscoreisaqualitativeoutlookonthenear-termevolutionofthecompany'stransition.Itusesspecificelementsoftheperformanceandnarrativescorestoinferifsignificantchangesareexpectedtothecompany’scurrentstrategyandresultingperformance.

Thischapterfurtherpresentstheset-upoftheACTscorecomponents,toallowuserstounderstandhowcompaniesareassessed.Italsoaddressesthespecificcaseoftransitionenablers(seesection

3.4)

andtheACTCoremethodology(seesection

3.5)

.

Note:WhilethisACTFrameworkmainlymentions‘lowGHGemissions’,thefollowingsectionsmayalsoreferto‘low-carbon’technologies/products/CapEx/R&Detc.Theterm‘low-carbon’hasbeenusedbytheACTInitiativesinceitslaunchandstillalignswiththevocabularyofvariousframeworksandstandards.However,theACTFrameworkdoesnotfocusonCO2onlybutconsidersallrelevantGHGs(seeGlossary).

ACTFramework

page

14

|ACTInitiative|Version2.0|

3.1.Performancescore

Purposeandapproach

Theperformancescoremeasuresacompany’sdegreeofalignmentwithalow-GHGemissionseconomy.usingthesetofindicatorsincludedintherelevantACTmethodology.

TheperformancescoreiscalculatedfromthescoresgiventothecompanyforeachoftheindicatorsacrossthemultiplemodulesincludedintherelevantACTmethodology.Eachindicatorscoreisgivenasapercentage.Theperformancescoreiscalculatedbyaggregatingindividualindicatorscoresusingthe

weightingsallocatedtothem(seesection

3.1.4)

.Theperformancescoreisanumberbetween0and20,asillustratedin

Figure3.

Figure3:Illustrationoftheperformancescoreset-up

Guidancetoperformancescoring