Key principles of a credible climate action plan:
- Emissions must be reduced 50% by 2030
- Emissions disclosure alone is inadequate
- A long-term target (beyond 10 years) without a short-term plan (5 years) is inadequate
Essential components of a climate action plan:
- Short-term targets required: 5 year and 5-10 year plan*
- Average absolute Scope 1-3 emissions reduction of 7-8% pa to 2030
- Phase out fossil fuel use and production, no financing of new supply**
- Executive compensation, strategy and lobbying aligned with plan*
- Necessary capex commitments*
- End deforestation, credible use of offsetting only if strictly necessary***
- Independent auditing of emissions*
- Annual performance reporting to shareholders
* See: https://www.climateaction100.org/progress/net-zero-company-benchmark/
** See: https://www.iea.org/reports/net-zero-by-2050
*** The government backed integrity standards for corporate claims on offsets: https://vcmintegrity.org/
