Carbon Performance assessment of electricity utilities methodology note - version 5.0

The Carbon Performance assessment of electricity utilities methodology note - version 5.0 outlines how major electricity utilities are evaluated against global climate targets, including those set under the Paris Agreement. The methodology benchmarks companies’ carbon intensity against sector-specific decarbonisation pathways, enabling investors to assess how aligned utilities are with the transition to a low-carbon power system.

Using the Sectoral Decarbonisation Approach (SDA), the framework translates international greenhouse-gas reduction goals into measurable benchmarks for the electricity sector. It compares utilities’ emissions intensity - typically measured as tonnes of CO₂ per unit of electricity generated - with benchmark pathways derived from climate scenarios. This allows investors and analysts to evaluate whether companies’ current and projected emissions trajectories are consistent with climate-aligned transition pathways.

This 2024 methodology note represents the most recent iteration of TPI’s Carbon Performance framework for electricity utilities.