Focus companies have been chosen as they produce substantial greenhouse gas emissions, have large coal-fired power capacity or have a strategic role in driving the net zero emissions transition. A total of five focus utilities have been identified for engagement in the first year of the initiative, who collectively emitted a total of 285 million tonnes of CO2 in 2019, equivalent to the national emissions of a country like Spain.
Current focus companies include:
Identifying the Asian Utilities Engagement Program focus companies
A four-step process was developed to identify the program’s focus companies:
- Start universe: Begin with a company universe of all major listed utility companies in Asia.
- Truncate universe: Cut universe to the largest 30 companies by market capitalisation and systematically important unlisted national utilities.
- Rank by emissions: Sort the 30 companies according to their Scope 1 and 2 emissions using publicly released 2019 data.
- Consultation with investors: To further screen for companies where investors have a meaningful shareholding and a qualitative analysis regarding the readiness of companies to participate.
Benchmarking and tracking progress
The program tracks how each company is performing with respect to the high-level goals of the initiative. There are three main ways that progress is tracked:
- Investor updates: The lead investor for each focus company is required to share high-level information on each company’s progress via AIGCC and other program forums.
- Annual investor collaborative forum: The lead investor for each focus company and each investor engaging a focus company individually are required to share high-level information on each company’s progress. This includes observed areas of improvement and updated priorities for the next phase of engagement.
- High-level public progress statement: AIGCC will produce a public statement detailing the progress observed by the initiative in consultation with participants at regular intervals.
Investors commit to engaging with at least one focus company during each year of the initiative as part of a collaborative group.