Climate Engagement Canada (CEC) has announced net-zero benchmark criteria in an effort to support the transition among Canada’s corporate issuers.
In a May 4 announcement, CEC revealed that the benchmark aims to serve as a tool to support the “just transition” among Canada’s issuers towards a net-zero economy by standardizing expectations from the financial community.
The benchmark provides a set of common standards for investors to evaluate corporate issuers’ progress towards aligning with the Paris Agreement.
This takes into account a range of “disclosure indicators” including whether a company has announced an ambition to reach net-zero greenhouse gas (GHG) emissions by 2050 or sooner, whether it has set long- and short-term GHG reduction targets, whether it has implemented a decarbonization strategy, as well as its public policy engagement on climate.
According to the CEC, the benchmark is “closely aligned” with a similar model developed by Climate Action 100+ and layers in additional context specific to the country’s unique economic situation.
Updates are expected to be rolled out later this year, including the addition of evaluations of all CEC Focus List companies based on the benchmark.