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.
Investor engagement with Asian electric utilities will play a key role in addressing climate risk.
7 focus utilities have been identified for engagement, who collectively emitted a total of 838 million tonnes of CO2 in 2020, which is more than what the United Kingdom and Saudi Arabia emit per year combined.
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 latest publicly released 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.
- In subsequent years, repeat process to expand Asian Utilities Engagement Program focus companies and investor involvement.
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 report: AIGCC will produce a public report 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.