Carbon Performance assessment of chemical producers methodology note - version 1.0

The Carbon Performance assessment of chemical producers methodology note outlines how major chemical companies are evaluated against global climate targets, including those set under the Paris Agreement. The methodology benchmarks companies’ emissions intensity against sector‑specific decarbonisation pathways, enabling investors to assess alignment with the low‑carbon transition.

Using a sector‑specific extension of the Sectoral Decarbonisation Approach (SDA), the framework compares companies’ historical and projected greenhouse‑gas emissions with climate‑aligned benchmarks. To address the highly heterogeneous nature of the chemicals sector, the methodology applies a novel subsector‑weighted approach, differentiating across product types and production profiles to enable consistent and meaningful comparison of emissions intensity across companies.

This 2026 methodology note represents the first dedicated TPI Centre Carbon Performance methodology for chemical producers and expands TPI’s sectoral coverage.