ACT sheet
Accelerate Climate Transition
Type : Implementation and monitoring of the action plan/ Evaluation
Date : 2015
Author : CDP and ADEME Target : Companies
The climate emergency and the growing integration of carbon accounting into organisations' strategy show that it is essential toassess not only the GHG emissions of each organisation, but also their action plan.
In order to improve reporting regarding the action plan, and more generally, organisations' energy-climate transition, it seems relevant to assess what strategy is being implemented and to what extent this strategy is in line with low-carbon transition pathways (outlined for example by the IPCC, the International Energy Agency (IEA) and the work of IDDRI).
It is with this in mind that a new method developed in 2015 by CDP and ADEME, initially named « Assessing low Carbon Transition » (ACT®), was developed. To date, ACT® is the only international initiative that creates a framework of “climate accountability” for companies with regard to the2°C objective of the Paris Agreement. ACT® is presented in two parts: « ACT Step-by-Step » and « ACT Assessment ». The first enables the construction of a strategy aligned with relevant and ambitious low-carbon pathways, while the second enables its valorisation by assessing its credibility and robustness.
What are the objectives of the approach?
ACT® aims to measure an organisation’s alignment with a future low-carbon world. These methods are carried out based on a framework, which enables the recognition of strategies compatible with a low-carbon transition pathway. ACT®, through its analysis, awards a score intended to inform companies and investors, as well as indirectly public authorities, about the credibility of the low-carbon strategy. Through ACT®, companies are evaluated according to sectoral criteria, in accordance with sectoral 2°C pathways of theIEA.
What is/are the target(s) of the approach?
« ACT Step-by-Step » and « ACT Assessment » are aimed at companies, investors, consultancies, federations and, to a lesser extent, public authorities. To ensure their adaptability to organisations of different sizes, ADEME and CDP piloted the ACT® methodologies with 23 large international companies and 30 French SMEs-ETIs from the six major activity sectors.
Today, there are 14 sectoral ACT® methodologies for: the automotive sector, electricity, retail, cement, transport, oil & gas, iron & steel, aluminium, paper & cardboard, construction & real estate management, construction, glass, chemicals. A method described as “ Generic ” is applicable to a wide range of other sectors: mining, waste and water management, food service, information and communication, health, entertainment, public administration…
A method described as “ Generic ” is applicable to a wide range of other sectors: mining, waste and water management, food service, information and communication, health, entertainment, public administration…
It should be noted that the ACT “Generic” methodology differs from the sectoral ACT® methods by its lack of a single reference framework due to the diversity of activities of the companies assessed. Unlike the sectoral methods that use emissions intensity metrics based on physical units specific to each sector (such as tonnes of CO2e per tonne of cement), ACT “Generic” adopts a combination of strategies: use of mixed frameworks, choice among available sectoral frameworks, and, failing that, application of the Science Based Targets initiative (SBTi) absolute contraction approach to establish decarbonisation pathways.
Does the approach rely on a shared scientific basis?
ACT® methods draw on work from, among others, the IEA, the SNBC, the SBTi and IPCC reports.
They are based on the analysis of specific points of the company's strategy across 9 modules.
1) Target in terms of reduction objectives
2) tangible investments
3) intangible investments
4) management
5) performance of products sold
6) engagement with suppliers
7) engagement with customers
8) political engagement
9) the business model
Each module then consists of several indicators. These modules and indicators are weighted according to sectors. The weighting was developed to reflect the relative importance of the modules in the low-carbon transition of different sectors.
Does the approach rely on a specific methodology?
The stages of the method ACT “Step-by-Step” (or ACT-S for “Step-by-Step”) are the following:
1) Current situation/initial diagnosis
2) Issues and Challenges
3) Vision
4) New Strategy
5) Action Plan
In the case of a climate action, the action shall be “ClimATE-SMART”.
Clim = Climate impact: will the action lead to a low, medium or high reduction in GHG emissions?
A = Acceptable: is the behavioural change required by the action acceptable to the target Stakeholders?
T = Transformative: will this action bring about some transformation of activities?
E = “Engaging”: will this action encourage buy-in from the target Stakeholders?
The stages of the method ACT “Assessment” (or ACT-A for “Assessment”) are the following:
1) Performance rating
2) Narrative rating
3) Trend rating
4) Feedback report
The ACT® scoring thus combines:
A score from 1 to 20 (Performance Rating)
A letter from A to E (Assessment Rating: the company is more or less prepared for the transition to a low-carbon economy)
A sign (Trend Rating: + (improving), - (deteriorating) and = (stable))
For companies and in particular SMEs-ETIs, ACT® can therefore take the form of a method for structuring their low-carbon transition strategy, indicating through its scoring of different criteria the points to prioritise to define and ensure the continuity of their organisation's strategy.
The scope of ACT® methodologies resembles an organisational boundary. However, it differs from that of GHG inventories, for which organisational boundaries are based on a control/ownership approach of GHG sources and sinks. The ACT® scope therefore potentially encompasses all of a company's activities and its entire value chain.
The temporal boundaries for a given sector are determined by the need for past, present and future information on the organisation. The degree of past information to include is determined by what is necessary to infer the required trajectory for an appropriate assessment.
The methodologies aim to include all significant sources of direct and indirect emissions (covering scopes 1, 2 and 3) in order to faithfully reflect a substantial share of the organisation's total emissions.
The reporting boundaries of the ACT® methods for a given sector are defined according to the sector's main sources of emissions, following the principle of relevance (« relevance »). This leaves organisations some latitude to adapt these boundaries to their specific sector of activity. Each ACT® method specifies a detailed list of emission sources to be considered, including those that are mandatory and those that are optional. For example, in the ACT “Generic” methodology, direct emissions from land use, land-use change and forestry (LULUCF) are considered optional.
The ACT® methodologies have expanded since their creation with the addition of new sectoral methodologies. Currently, the sectoral method on agriculture & agri-food as well as a new method on biodiversity issues are in pilot phase and will soon be integrated into the ACT® methodology catalogue. In addition, a new ACT methodology dedicated to “ Adaptation ” has recently been developed and is the subject of a dedicated sheet.
Does the approach rely on tools?
Excel methods and collection and scoring tools have been developed for each of the sectoral methods.
The ACT “Step-by-Step” method relies on two toolboxes:
a Strategy toolbox (which includes 4 types of resources, notably a SWOT matrix to assess the strengths, weaknesses, opportunities and threats of the organisation's action plan)
a Carbon Performance toolbox (which consists of a main tool dedicated to defining and understanding carbon performance indicators)
Can other low-carbon transition methods and tools be used to achieve the objectives of this approach?
In order to be able to initiate ACT® processes, the organisation shall have carried out at least one organisational GHG inventory during the past two years. They thus fit within the continuity of an assessment carried out using internationally recognised methods, such as ISO 14064-1, the GHG Protocol or Bilan Carbone®. The ACT® methods thus make it possible to start, or continue, reflection on the transition plan in the form of concrete actions (reduction potential, definition of monitoring, pilot, resource needs, financing, stakeholders). The ultimate objective being to test the robustness and alignment of this plan with the goals set by the Paris Agreement.
Other initiatives address the same issues as ACT®, such as The Transition Pathway Initiative, which uses public documentation to assess organisations, or the SBTi methods. ACT® has the advantage of being a sectoral, transparent approach based on company data (public or verifiable).
Does it allow third-party recognition? If so, in what manner?
After several months of assessment, the organisation receives the following elements:
A detailed explanation of the information used for the assessment.
A summary of the results obtained.
Recommendations to improve its GHG emissions reduction strategy and adopt good practices.
A list of consultants and evaluators is proposed to support organisations in their ACT “ Step-by-Step ” and ACT “ Assessment ”.
Attention, the result of the initial diagnosis of ACT “Step-by-Step” does not necessarily reflect the score obtained within ACT “Assessment”. The organisation shall be subject to a specific ACT “Assessment” audit to obtain the correct corresponding score.
Can this approach be harmonised with other international frameworks?
Versions of ACT® have been developed internationally through local programmes, notably in Latin America through the ACT-DDP project ACT-DDP (ACT-Deep Decarbonisation Pathway) and in Japan, with the aim of supporting the country's neutrality ambition.
In 2024, France represents 1/4 of the organisations that have undertaken an ACT® process.
The fact sheets of the Overview of carbon accounting methods and tools are the result of a synthesis work by ABC. We remain open to your feedback or questions on this form.
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