Methodology
The platform grades companies on seven key metrics of climate transition performance. The selection of these metrics is based on a detailed mapping exercise of all the leading transition assessment and transition plan guidance frameworks (see table 2 below). As these frameworks continue to evolve, we expect to refine the metrics presented in the platform.
| Framework | Metric 1 | Metric 2 | Metric 3 | Metric 4 | Metric 5 | Metric 6 | Metric 7 |
|---|---|---|---|---|---|---|---|
| Arc | 1. Emissions | 2. Targets | 3. Capital Allocation | 4. Governance | 5. Policy Engagement | 6. Solutions (Beta) | 7. Supply chain (Beta, Food and Agriculture sector only) |
| Definition | Assesses the net-zero alignment of a company’s recent trend in GHG emissions intensity | Assesses the net-zero alignment of a company’s targets | Assesses the net-zero alignment of a company’s capital expenditure | Assesses managerial oversight and responsibilities of the company’s climate-related issues | Assesses a company’s climate lobbying, voting, and industry association related activities | Assesses the net-zero alignment of a company’s current revenue. | Assesses the nature and extent of a company’s engagement with suppliers and clients on transition |
| ISSB/ IFRS(Regulatory) | Module Metrics and Targets, paragraph 29 (a). | Module Metrics and Targets, paragraphs 28(c), 33-36. | Module Strategy, paragraphs 14, 15-21, 22 (a, iii) | Module Governance, paragraph 6, and Module Metrics and Targets, paragraph 29 (g) | n/a | n/a | Module Strategy, paragraph 14 (a, iii) |
| ESRS (Regulatory) | Disclosure Requirement E1-7 to E1-11 | Disclosure requirement E1-3 Measurable targets for climate change mitigation and adaptation | Disclose Requirement E1-4 climate change mitigation and adaptation action plans and resources, and Disclosure Requirement E1-17 – Potential financial effects from climate-related opportunities | Disclosure requirement E1-2, Policies implemented to manage climate change mitigation and adaptation | Disclosure Requirement E1-17, Potential financial effects from climate-related opportunities | Disclosure Requirement E1-2, Policies implemented to manage CC mitigation and adaptation and Disclosure Requirement E1-3, Actions and resources in relation to climate change policies | |
| ACT Methodology (Voluntary), | Material investment and Sold Product Performance indicators | Targets indicators | Material investment indicators | Management indicators | Policy engagement indicators | Sold Product Performance and Low Carbon Performance indicators | Intangible Investment, Supplier Engagement, and Client Engagement indicators |
| CA100+ (Voluntary) | Decarbonization indicator 11 (Historical GHG Emissions Reductions) | Framework indicator 2, 3 and 4 (Short-, Medium- and Long-term GHG Reduction Target(s)) | Framework indicator 6 (Capital Allocation) | Framework indicator 8 (Climate Governance) | Framework indicator 7 (Climate Policy Engagement) | Framework Indicator 5 (Decarbonization Strategy, sub-indicator 5.2) | n/a |