Climate Action 100+ is an initiative led by investor groups looking to ensure company capital is turned towards meeting the goals of the Paris Agreement. It has US$54 trillion worth of assets under management.
The first-ever benchmark assesses 167 companies and defines key indicators of success for business alignment with a net-zero emissions future and limiting global warming to 1.5C.
"This is an ambitious initiative that will enable climate change engagement to go to the next level," AustralianSuper ESG director and CA100 steering committee member Andrew Gray said.
"The ability to measure through benchmarking means investors can set a base to track the progress of companies in relation to their management of climate change investment risks and opportunities."
None of the 12 Australian companies assessed, including BHP, Origin, Santos and Woodside have aligned their capital with the Paris Agreement, according to the benchmark.
The assessment released shows that no company has fully disclosed how it will achieve its goals to become a net-zero enterprise by 2050 or sooner.
The report said that while some companies in a range of sectors are ahead of their peers in making progress towards disclosure and decarbonisation strategy indications, all companies had more work ahead.
It noted scope 3 emissions were a massive blind spot to companies' decarbonisation strategies.
Around half of the companies assessed have announced net-zero by 2050 or sooner, but half of those do not cover the full scope of the companies most material emissions.
Woodside and Santos, the benchmark noted, had declared they will reach net-zero by 2050 or sooner, however neither have set targets to reduce scope 3 emissions.
Fortescue Metals Group chairman Andrew Forrest argued against scope 3 emissions targets when he unveiled the company would reach net-zero emissions by 2030 last week, saying a scope 3 target was useless until there was a carbon-free alternative product to offer customers.
The analysis also noted long-term ambitions need to be reinforced with clearer strategies and what it described as "robust" short -and medium-term targets.
Almost three-quarters of companies assessed have committed to align their disclosures with the Task Force for Climate-related Financial Disclosures recommendations, but only 10% use the 1.5C scenario.
"The benchmark shows there is an urgent need for greater corporate action and higher ambition in accelerating the net-zero economy and ensuring a safe and viable future," CA100 CEO and president Mindy Lubber said.
"Investors, companies and all stakeholders now have a clear market of progress that can drive transformational change at the necessary speed and scale."
The Australasian Centre for Corporate Responsibility welcomed the benchmark, saying it heralded an end to greenwashing.
"This analysis lays out, in unambiguous detail, the work ahead," ACCR director Brynn O'Brien said.
"It is cast iron proof that the world's largest emitters are failing to materially rein in their impact on the planet, and that investor strategies to engage them have not yet risen to the challenge."
ACCR has successfully pushed Woodside and Santos to allow their shareholders to hold non-binding votes on their respective decarbonisation policies.
