1. In 2016, we expect to see the companies make substantive commitments to developing a holistic
strategy for emissions reductions that gives weighting to the total lifecycle, in a way that is
consistent with limiting rises in global temperatures to 1.5 – 2°C.
2. Going forward, this strategy and its accompanying benchmarking and reduction targets should be
clearly communicated to shareholders to allow for evaluation.
To ensure portfolio resilience under scenarios that limit global temperature rises to the recently established global target of staying ‘well below’ 2°C, with an ambition for 1.5, there is a need for radical portfolio transformation. Shareholders have an interest in understanding how companies are preparing for resilience under these scenarios; both in terms of identifying risk through portfolio stress-testing, and describing how they would adapt under such carbon-constrained conditions.