Climate Engagement Canada (CEC) is pleased to release the inaugural Public Policy Engagement Alignment Assessments (hereinafter referred to as “Policy Engagement Assessments” or simply “assessments”) for the CEC Focus List companies. These assessments have been conducted by InfluenceMap, a research contributor to CEC.

Policy Engagement Assessments

The Policy Engagement Assessments complement the findings of CEC’s inaugural Net Zero Benchmark. These assessments aim to understand the approach of the CEC 41 Focus List companies to public policy engagement on climate change and shed light on their relationships with 14 of the largest and most active Canadian industry associations regarding climate-relevant policy.

The Policy Engagement Assessments track and evaluate companies to understand the alignment between their lobbying efforts and recommendations of the Intergovernmental Panel on Climate Change (IPCC) to deliver the Paris Agreement’s goal of limiting global temperature rise to well below 2°C, with efforts toward 1.5°C. This analysis also includes both direct and indirect lobbying efforts (e.g., through associations).

Key Takeaways

The profiles and this content are current as of March 2024, though some of the information may change slightly as all LobbyMap[1] profiles are updated on a regular basis, per InfluenceMap’s methodology. The 41 companies assessed for CEC span six sectors:[2] Consumer Discretionary, Consumer Staples, Energy, Industrials, Materials, and Utilities. The following summarizes overarching trends identified by LobbyMap.

• • The highest Performance Band assigned to all companies assessed was a C. Grades ranging from A+ to B indicate broad support for Paris-aligned climate policy, while grades from D to F suggest perceived misalignment with science-based policy.

• • InfluenceMap reports a common trend across global jurisdictions: industry associations tend to engage more actively than the companies they represent. This pattern seems to hold true in Canada as well.

• • Out of the 41 companies assessed, only 7% exhibit strategic engagement with climate policy, as indicated by their Engagement Intensity over 25%.

• • Most of the assessed companies (78%) demonstrate low engagement on climate policy, as indicated by their Engagement Intensity scores ranging from 0% to 11%.

• • Companies in the Materials, Industrials, Consumer Staples, and Consumer Discretionary sectors showed particularly limited public engagement with climate policy.

• • 46% of the assessed companies are perceived as misaligned in their Relationship Score, falling within a range of 23% to 50% in this category, meaning that they are members of industry associations with misaligned engagement on climate-related policy.

• • 44% of the assessed companies show limited indirect engagement through the industry associations currently assessed by InfluenceMap, resulting in the absence of a Relationship Score.

• • Energy companies obtained some of the lowest scores among the targeted companies. Following closely are companies from the Utilities sector.

• • The results of the CEC Public Policy Alignment Assessments for 2024 are comparable to similar evaluations and results by CA100+, now in their fourth year of reporting.

Methodology

InfluenceMap assessments use a variety of public data sources, including corporate websites, social media channels, financial disclosures, regulatory consultations, and reputable media reporting. This extensive data collection ensures a robust and statistically relevant analysis of each company’s climate policy engagement. The methodology’s reliance on public data sources enhances the transparency and objectivity of the assessments, making the findings accessible to external stakeholders. For additional information about methodology, please visit their methodology section by following this link (here).[3]

Next Steps

These results will inform investor-led collaborative engagement activities with Focus List companies. By assessing both a Focus List company’s stated commitments and actual policy engagement, CEC investor participants are better equipped to engage with companies on their approach to climate policy. The InfluenceMap assessments shed a light on companies’ alignment with underlying research; serve as a guiding tool; and support constructive dialogue with Focus List companies on their public policy engagement and positions.

[1] LobbyMap is a platform operated by InfluenceMap and is the world’s leading system for tracking corporate climate policy engagement. This platform can be accessed following this link: https://lobbymap.org/.

[2] InfluenceMap followed the Global Industry Classification Standard (GICS) to categorize companies in its database. GICS was developed to provide investors with consistent and exhaustive industry definitions. Based on this taxonomy, the Energy sector refers to companies involved in oil, gas, coal, and fuels production, processing, and transportation, and any industry associations that represent the companies involved in these activities. The GICS Utilities sector includes companies involved in electricity generation, including gas and renewable electricity producers.

[3] InfluenceMap. “InfluenceMap Methodology for Climate Engagement Canada’s Net Zero Benchmark Summary of Alignment Assessment Methodology.” April 2024. Web: https://influencemap.org/briefing/CEC-Benchmark-Alignment-Assessment-Methodology-27593https://lobbymap.org/page/About-our-Scores.

Disclaimer: Climate Engagement Canada (CEC) does not require or seek collective decision-making or action with respect to acquiring, holding, disposing and/or voting of securities. CEC investor participants are independent fiduciaries responsible for their own investment and voting decisions. (Please see the full disclaimer here.)