Benchmarks are widely used to structure and inform investors’ dialogue (or engagement) with companies on environmental and social issues. Among those that have been explicitly developed for investors are the Access to Medicines Index, the Access to Nutrition Index, the CDP’s Climate Performance Leadership and Climate Disclosure Leaders Indices, the Business Benchmark on Farm Animal Welfare; and the Transition Pathway Initiative.

These benchmarks follow the same basic principles: rating or assessment criteria are developed, companies are assessed against these criteria, and the results are published in the form of a ranking or league table. There is a growing body of evidence that such benchmarks can be effective at delivering changes in corporate practices and performance. This can be through some or all of raising industry, investor and public awareness of the issue in question, acting a guide to best practice, providing peer comparison and competition, and highlighting areas where action is needed.