The Transition Pathway Initiative (TPI) announced today plans to launch the TPI Global Climate Transition Centre, aiming to provide a new resource for investors, offering in depth data on the net zero alignment of thousands of companies around the world.
Founded in 2017, the Transition Pathway Initiative is a global initiative led by asset owners and supported by asset managers that assesses companies’ preparedness for the transition to a low-carbon economy and supports efforts to address climate change. TPI provides independent research enabling investors to assess the alignment of their portfolios with the goals of the Paris Agreement and to drive real world emission reductions.
Along with the plans to launch the new center, investment giant BlackRock announced that it will join TPI as a supporter. With the addition of BlackRock, TPI supporters now include more than 110 funds representing assets under management and advisement of $40 trillion.
Sandy Boss, Global Head of BlackRock Investment Stewardship said:
“It is BlackRock’s investment conviction that climate risk is investment risk. TPI data provides insight into issuer net zero transition, already serving as the analytical backbone for Climate Action 100+. We consistently hear from investors around the world on the need for quality data to inform decision making, and so we are pleased to support TPI as it scales its analysis to provide valuable input.”
The new center will be based at the London School of Economics and Political Science’s Grantham Research Institute on Climate Change and the Environment. The establishment of the center, slated for early 2022, will significantly increase TPI’s independent assessments of companies from 400 today, to 10,000, and will also scrutinize corporate and sovereign bond issuers.
According to TPI, the center aims to support investors in aligning portfolios with net zero targets, participate in engagement initiatives such as Climate Action 100+, and carry out detailed analysis of the most carbon-intensive companies.
Adam Matthews, Chair of TPI and Chief Responsible Investment Officer, Church of England Pensions Board said:
“Information drives markets, and the independent freely-available insights from the TPI Global Climate Transition Centre will help markets clearly see which companies are serious about climate and which are not. It will enable climate factors to inform decision making as to whether company debt is refinanced as well as support investors to understand the risks and opportunities presented by sovereign debt. For wider society, it will bring transparency and accountability at scale to empower action.”
TPI stated that the Global Climate Transition Centre is directly supported by major asset owners, fund managers the London School of Economics and Political Science and London Stock Exchange Group (LSEG).
David Schwimmer, LSEG CEO, said:
“The creation of the TPI Global Climate Transition Centre marks an important step forward in accelerating the climate transition. The Centre will dramatically scale the TPI’s ability to provide investors with rigorous, independent and transparent assessments of company performance on climate change and enable expansion across asset classes.
“This will give global investors the analysis they need to better engage with issuers, reallocate capital and ultimately achieve net zero across their portfolios.”