New guide on corporate Climate Action Plans (CAPs) helps investors distinguish between real action and greenwashing

As company new years resolutions flood LinkedIn feeds and webpages, how can you tell the difference between real, actionable plans versus corporate greenwashing?

Over the last few years, we have seen dozens of statements and commitments, seemingly setting the stage for climate plans and environmental strategies. While at first glance these intentions seem like a step in the right direction, it remains challenging to differentiate between the real and the persuasive.

A corporate Climate Action Plan (CAP) is a company’s road map to net-zero. CAPs, which are sometimes referred to as climate transition plans, are time-bound strategic plans outlining how a company will alter its current business model to achieve net-zero emissions.

To help give investors the tools they need to distinguish between “green” public relations and credible climate plans, SHARE is excited to launch a new investor guide on corporate Climate Action Plans.

In this investor guide, SHARE breaks down how investors can hold publicly traded companies accountable for their environmental, social and governance commitments by monitoring their CAP. CAPs, if developed properly, will provide investors with decision-useful information that will allow them to understand:

  1. Whether the company has set a 1.5°C-aligned emissions reduction target.
  2. Whether the company’s business model aligns with its emissions reduction targets.
  3. The specific approach(es) that a company intends to take to address any misalignment.

There is no hiding from climate change. Climate change creates real risks for the planet – and for companies and their business operations. For shareholders, it is important to see how a company will respond to these risks, and whether or not they have built in the necessary mitigations. The effort to bring integrity to climate action planning is a global issue that requires dedicated attention and research.

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