The Climate Action (CA) Impact Topic challenges companies to take action to combat the climate crisis and its impacts. Under this Impact Topic, companies develop an
action plan to support limiting global warming to 1.5°C, and larger companies measure greenhouse gas (GHG) emissions and set science-based targets.
Why this Matters
Recent years have been the warmest on record. Without massive reductions in carbon dioxide and other greenhouse gas emissions, global warming is expected to exceed 2°C this century. To limit warming to 1.5°C, global emissions must drop by 45% by 2030 (compared to 2010 levels) and reach net zero by 2050. Current efforts are insufficient, and the window to act is closing. Climate change is already causing widespread harm, especially to vulnerable communities.
1. Greenhouse Gas (GHG) Emissions
Companies take the first step towards managing the GHG emissions of their operations and value chain by measuring them. This empowers the company to take climate action informed by reliable data.
CA1 The company has a process to measure its greenhouse gas emissions annually. |
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CA1.1 The company has a documented process to measure its scope 1, 2 and 3 GHG annually and discloses the results publicly. | Large, Extra Large, and Extra Extra Large companies | All sectors | Year 0 Year 3 Year 5
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CA1.2 The company gets an independent third party to verify its annual greenhouse gas emissions inventory. | Large, Extra Large, and Extra Extra Large companies | All sectors except Service with Minor Footprint | Year 0 Year 3 Year 5 |
2. Commitment to Limit Global Warming
Companies set climate targets and define clear actions to reduce their GHG emissions and to contribute to global ambition to limit global warming to 1.5°C. Large companies ensure their plans are holistic and just, considering and addressing any unintended consequences on stakeholders.
CA2 The company is committed to contribute to help keep global warming below 1.5 °C. |
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CA2.1 The company has a publicly available climate action plan. | Companies without Workers, Micro, Small, Medium companies | All sectors | Year 0 Year 3 Year 5 |
CA2.2 The company has science-based targets, validated by the SBTi or verified by an independent third party, to make a just contribution to the global goal of net zero greenhouse gas emissions by 2050. | Large, Extra Large, and Extra Extra Large companies | All sectors | Year 3 Year 5 |
CA2.3 The company has a climate transition plan to make a just contribution to the global goal of net zero emissions by 2050. | Large, Extra Large, and Extra Extra Large companies | All sectors | Year 3 Year 5
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CA2.4 The company consults workers and stakeholders to ensure a just transition in its climate transition plan. | Large, Extra Large, and Extra Extra Large companies | All sectors except Service with Minor Footprint | Year 3 Year 5
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3. Climate Action Plan
A successful climate strategy requires continuous improvement, accountability, and a just transition that benefits all stakeholders. Companies take action on their climate transition plans, ensuring transparent reporting of progress and outcomes. Large companies align executive incentives with climate goals, and use their influence to support broader climate action.
CA3 The company implements and makes progress on its climate action plan. |
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CA3.1 If the company has an existing incentive remuneration scheme for the executive team, it integrates climate targets. | Large, Extra Large, and Extra Extra Large companies | All sectors except Service with Minor Footprint
| Year 3 Year 5 |
CA3.2 The company uses advocacy to support the global goal of net zero emissions by 2050. | Extra Extra Large companies | All sectors | Year 3 Year 5 |
CA3.3 The company makes progress on its climate action plan and evaluates its effectiveness. | Companies without workers, Micro, Small and Medium companies | All sectors | Year 3 Year 5
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CA3.4 The company makes progress on its climate transition plan and evaluates its effectiveness. | Large, Extra Large, and Extra Extra Large companies | All sectors | Year 5 |
CA3.5 The company takes action for a just transition. | Large, Extra Large, and Extra Extra Large companies | All sectors except Service with Minor Footprint | Year 5 |
CA3.6 The company publicly discloses its progress on its climate action plan. | Companies without workers, Micro, Small and Medium companies | All sectors | Year 3 Year 5
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CA3.7 The company publicly discloses its progress on its climate transition plan annually. | Large, Extra Large, and Extra Extra Large companies | All sectors except Service with Minor Footprint | Year 5 |
Further Resources
Topic | Resource |
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GHG emissions measurement | Corporate Standard (GHG Protocol) [EN] [ES] [FR] [JP] [PT] [ZH] Corporate Value Chain (Scope 3) Standard [EN] GHG Protocol Emission Factors [EN] GHG Protocol - GHG Emissions Calculation Tools - Various [EN] SME Climate Hub - various tools and a free training course [AR] [EN] [ES]
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Contribution to net-zero emissions | Science Based Targets initiative - includes SME track and large enterprise track [EN] Corporate Net-Zero Standard, March 2024 (SBTi) [EN] Net Zero Guidelines, 2022 (ISO) [EN] [ES] [FR] [JP] [RU] Net-Zero Ambition Assessment Tool (Sustainability Advantage) [EN]
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Climate action plan | Assessing low carbon transition - Methodologies for various industries (ACT) [EN] [FR] Climate Tools Base (B Corp Climate Collective) [EN] Climate Transition Action Plans, 2022 - Guidance (We Mean Business Coalition) [EN] Engaging Supply Chains on the Decarbonization Journey, 2023 (Science Based Targets initiative) [EN] Supplier Engagement Guide (Exponential Roadmap initiative) [EN] Net Zero Procurement Toolkit (Sustainability Advantage) [EN]
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Lobbying & advocacy | The AAA framework for climate policy leadership (Environmental Defense Fund) [EN] The 4 A's of Climate Leadership - Policy (We Mean Business Coalition) [EN] Responsible Lobbying Framework [EN]
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Just transition and climate justice | Just Transition Resource Platform (We Mean Business Coalition) [EN] Introduction to a Just Transition – A business brief, 2022 (United Nations Global Compact Think Lab) [EN] The Climate Justice Playbook for Business, 2021 (B Lab) [EN] Climate Justice Toolkit, 2023 (B Lab US & Canada) [EN]
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