The Transition Pathway Initiative (‘TPI’)

The PRI supports the initiative by providing the secretariat services, alongside FTSE Russell (the data partner) and the Grantham Research Institute on Climate Change and the Environment at the London School of Economics (the academic partner).

Deliberately non-prescriptive in how it is to be used, the TPI and its findings are made available to investors for free through an online tool, enabling them to make more informed decisions.

The TPI uses publicly available information to assess a sector’s biggest companies (by market cap), with 14 sectors currently analysed - including aviation, autos, oil and gas, coal mining, cement, electric utilities, paper and steel.

The management quality and carbon performance of these companies is assessed: Management quality refers to how companies are managing the risks and opportunities relating to the transition to a low carbon economy. Carbon performance assessment look at the company’s current and future emission targets to see if they are or will be aligned with the Paris agreement.

To-date, over 50 asset owners globally, with around $15 trillion in assets under management or advice, are official supporters of the TPI.

The TPI complements existing Initiatives, including the Task Force on Climate-related Financial Disclosures (TCFD), and it is one of the data providers to Climate Action 100+.

For further information, visit the TPI website - where background on becoming a supporter can also be found. To be kept up-to-date with TPI developments, please sign-up to its e-newsletter.