Performance score
Narrative score
Trend score
Company presentation
The performance score ranges from 1 to 20 and is the weighted average of all indicators that are developed for a particular sector. Each module and individual indicator has a separate weight that is determined per sector.
The assessment narrative score ranges from A to E and is the second output of an ACT Assessment. It is supplemented by external data from sources such as reputation platforms, news sources, financial data.
The trend score is either +, = or – and is an output mode that attempts to use all relevant forward-looking information gathered through the ACT Assessment to provide a judgement on whether the assessor expects the company to move closer, farther away, or remain equal to its current path.
Companies' ACT Performance Score
The company results against ACT performance score which is made of 9 modules answering the key question “what does a company propose to do to transition to a low-carbon future”? A particular focus is given to companies targets and how it proposes to reach these targets. Therefore ACT assesses core business performance:
- material investments;
- intangible investments;
- sold product performance;
- management;
- business model.
- policy engagement;
- supply chain engagement;
- customer engagement.
Companies' ACT Target Module Score
Emissions reduction targets have three important levers that determine how effective they can be as a management tool: scope, level of ambition, and time horizon.
Firstly, the scope of the target determines which emissions sources are included in the commitment. Scope 1 targets cover operational emissions, Scope 2 targets cover emissions from energy and Scope 3 targets cover emissions from the value chain, both upstream and downstream. The most desirable target scope differs across the ACT sectors. ACT asks companies to act on the biggest emissions sources (hotspots) within their direct and indirect responsibility. This means that the heaviest scoring weight is placed on having targets that cover these emissions hotspots, regardless of scope.
Second, the level of ambition that the targets need to have is determined by the emissions reduction that the sector has to undertake. These sector specific emissions reductions are derived from the IEA ETP carbon budgets, which are converted to company level using the SDA (Sectoral Decarbonization Approach).
Third, the time horizon of the targets is important for several reasons. The low-carbon transition is a long-term process which will take several decades. Therefore, targets need to consider the long term in order to cover the majority of the reductions needed in this transition.
Companies' ACT Performance Score
The company results against ACT performance score which is made of 9 modules answering the key question “what does a company propose to do to transition to a low-carbon future”? A particular focus is given to companies targets and how it proposes to reach these targets. Therefore ACT assesses core business performance:
- material investments;
- intangible investments;
- sold product performance;
- management;
- business model.
- policy engagement;
- supply chain engagement;
- customer engagement.
Companies' ACT Target Module Score
Emissions reduction targets have three important levers that determine how effective they can be as a management tool: scope, level of ambition, and time horizon.
Firstly, the scope of the target determines which emissions sources are included in the commitment. Scope 1 targets cover operational emissions, Scope 2 targets cover emissions from energy and Scope 3 targets cover emissions from the value chain, both upstream and downstream. The most desirable target scope differs across the ACT sectors. ACT asks companies to act on the biggest emissions sources (hotspots) within their direct and indirect responsibility. This means that the heaviest scoring weight is placed on having targets that cover these emissions hotspots, regardless of scope.
Second, the level of ambition that the targets need to have is determined by the emissions reduction that the sector has to undertake. These sector specific emissions reductions are derived from the IEA ETP carbon budgets, which are converted to company level using the SDA (Sectoral Decarbonization Approach).
Third, the time horizon of the targets is important for several reasons. The low-carbon transition is a long-term process which will take several decades. Therefore, targets need to consider the long term in order to cover the majority of the reductions needed in this transition.