Climate Action 100+ Net Zero Company Benchmark: Climate Accounting and Audit Assessment
This document sets out the framework and methodology for how Carbon Tracker Initiative (CTI) assesses company financial statements (and related auditor reports) for consideration of climate risk, as part of the Climate Accounting and Audit Assessment of the Climate Action 100+ Net Zero Company Benchmark (henceforth the ‘Benchmark’). [1]
The Climate Action 100+ Net Zero Company Benchmark draws on distinct analytical methodologies and datasets from public and self-disclosed data from companies, broadly categorised into two types of indicators: Disclosure Framework Indicators, which evaluate the adequacy of corporate disclosure; and Alignment Assessments, which evaluate the alignment of company actions with the Paris Agreement goals. The Climate Accounting and Audit Assessment covers both disclosure and alignment and can hence be considered a “hybrid” assessment.
