The transition to a low-carbon economy is a global priority, and many companies are committed to reducing their environmental footprint. However, it is essential to assess the credibility of these commitments. This is the context in which the ACT Core methodology was developed. Designed to analyse and compare companies’ transition plans, it is based on precise criteria that are accessible to all players, whether experts or not.
What is the ACT Core Methodology?
The ACT Core methodology is an evaluation framework for analysing the credibility of companies’ climate transition plans. It has been designed to be applied on a large scale, in particular through the use of public data. Its main objective is to provide a structured and accessible tool for :
- Large-scale assessments consistent with existing ACT sector methodologies.
- A nuanced classification of companies, adapted to economic and sectoral realities.
- An easy-to-understand assessment, even for non-experts.
- A scalable approach that can be adapted to new data.
- Compatibility with companies’ public disclosure constraints.
The Key Principles of ACT Core Assessment
ACT Core is based on seven fundamental principles that guarantee a rigorous and relevant assessment:
- Ambition: The data used must reflect the company’s contribution to a global warming scenario of 1.5°C as far as possible, or below 2°C as the minimum effort required.
- Relevance : Only the most relevant information should be collected to inform the various components of the assessment of the transition to low GHG emissions.
- Verifiability: The data used must be traceable, verifiable and reflect the overall credibility of the company’s transition plan.
- Time focus : The evaluation must cover both short-term performance and the long-term strategic vision, thus guaranteeing immediate impact and continuity of action.
- Consistency: When a time series of data is used, it must be comparable over time to ensure a reliable assessment of changes in commitments.
- Focus on implementation: The assessment must take account of the company’s ongoing public efforts, which are an integral part of its transition plan.
- Caution : Any assumptions made should reflect the company’s current performance and should not overestimate progress or improvements without tangible evidence.
Who is ACT Core designed for?
This methodology is designed to be used by a wide range of stakeholders:
Institutions and NGOs: This enables benchmarks to be built up and an overview of transition efforts to be obtained.
Companies: They can use it to assess the maturity of their climate strategy and identify areas for improvement.
Investors and analysts: ACT Core offers a tool for comparing companies and sectors, to help guide responsible investment.
ACT Core vs ACT Sectoral Methodologies: What are the differences?
Although ACT Core shares the same objectives as the ACT sector methodologies, it differs in several respects:
| Criteria | ACT Core | ACT Sectoral Methodologies |
| Approach | Overview for a large sample of companies | Detailed analysis of specific companies |
| Range | General and cross-disciplinary methodology | Assessment tailored to each sector |
| Use | Wide-ranging assessment based on public data | In-depth analysis on voluntary request |
| Results | Classification into several levels of climatic maturity | Detailed assessment of the credibility of transition plans |
Why is this important?
With the aim of tracking the progress of the 2,000 most influential companies in achieving the Sustainable Development Goals (SDGs), the ACT Core methodology aims to answer key questions:
- What concrete efforts are companies making to reduce their greenhouse gas emissions?
- Are the announced transition plans really credible and effective?
Thanks to this methodology, the World Benchmarking Alliance (WBA) and other key players will be able to measure the reality of companies’ commitments, identify the leaders of change and encourage those lagging behind to speed up their transition.