Overview of the TPI

The Transition Pathway Initiative (TPI) is a global initiative led by asset owners and supported by asset managers. Aimed at investors and free to use, it assesses companies’ preparedness for the transition to a low-carbon economy, supporting efforts to address climate change. Launched in 2017, it is rapidly becoming the ‘go-to’ corporate climate action benchmark.

TPI provides robust, independent research which empowers investors to assess the alignment of their portfolios with the goals of the Paris Agreement and to drive real world emission reductions through our actions. Asset owner led, the Transition Pathway Initiative (‘TPI’) is the leading corporate climate action benchmark. 
125 investors globally have pledged support for the TPI to-date (May 2022), representing over $40 trillion combined Assets under Management and Advice. They have committed to using the tool and its data in a range of ways, including to inform their investment research, in engagement with companies and in tracking managers’ holdings. 
Using publicly disclosed company information sourced and provided by TPI’s data partner, FTSE Russell, it:

  • Evaluates and tracks the quality of companies’ management of their greenhouse gas emissions and of risks and opportunities related to the low-carbon transition;
  • Evaluates how companies’ planned or expected future carbon performance compares to international targets and national pledges made as part of the Paris Agreement;
  • Publishes online the results of this analysis through a publicly-available tool hosted by its academic partner, the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science (LSE).
  • The TPI complements existing initiatives and frameworks, by aligning with prevailing disclosure initiatives and with investors climate change and sustainability expectations. It is also being aligned with the requirements of the Task Force on Climate-related Financial Disclosures (TCFD). 
Background and governance
The TPI was established in 2017 as a joint initiative between the Church of England National Investing Bodies (Church of England Pensions Board, the Church Commissioners and CBF Funds) and the Environment Agency Pension Fund. TPI is governed by the TPI Steering Group and consists of representatives from asset owners who are significant sponsors of the initiative. Additional funding is provided by selected Research Funding Partners, who are not part of the Steering Group.

A dedicated Project research team led by Professor Simon Dietz oversee the development of the assessment methodology, throughout feedback is sought from experts and industry peers. TPI’s on-going assessment work is guided by a Technical Advisory Group comprising expertise from academia, asset management and other relevant fields. The group undertakes regular reviews of the methodology and provides technical advice regarding TPI’s evolution.