Established in June 2022, the Transition Pathway Initiative Centre (TPI Centre) is an independent and authoritative source of research and data into the progress being made by corporate and sovereign entities in the transition to a low-carbon economy.
Strategic goal Become the go-to source for financial institutions on methods and data to advance the net zero transition.
Research and data partners Part of the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science (LSE), the TPI Centre collaborates with research and data partners across its projects. The Management Quality data partner is FTSE Russell, a London Stock Exchange Group (LSEG) company, and the TPI Centre is also the academic research expert of the Assessing Sovereign Climate-related Opportunities and Risks (ASCOR) project.
What we do Develop detailed and transparent assessment methodologies based on publicly available information to support the net zero transition within (financial and non-financial) corporate and sovereign debt markets. These include:
Carbon Performance (CP): a methodology that assesses the largest public-listed companies in high-emission sectors by market capitalisation against sector-specific quantitative benchmarks, to determine their emissions pathway alignment with the goals of the Paris Agreement.
Management Quality (MQ): a framework that scores companies based on their climate governance and management practices, including reporting and targets on greenhouse gas emissions, as well as an evaluation of the credibility of companies’ climate transition plans.
Banks: through the TPI Centre's Net Zero Banking Assessment Framework, we examine 10 key areas of banks’ climate performance, including their decarbonisation strategy and climate governance. Additionally, the TPI Carbon Performance Alignment Matrix offers an in-depth quantitative assessment of the alignment of banks’ sectoral decarbonisation targets with low-carbon benchmarks, along with a comprehensive summary of which sectors and business activities these targets cover.
Sovereigns: as part of the Assessing Sovereign Climate-related Opportunities (ASCOR) project, we monitor the progress made by countries in managing the low-carbon transition and the impacts of climate change. Through the ASCOR framework we assess countries’ emissions pathways, climate policies and climate finance.
Transition planning: through our Transition Plan Assessments, we assess how companies in high-emitting sectors translate climate commitments into concrete action. Building on TPI’s Management Quality and Carbon Performance assessments, these assessments offer a deeper evaluation of companies in high-emitting sectors, focusing on capital expenditure alignment, the robustness of emissions reduction targets, and the integration of climate considerations into corporate strategy. These sector-specific assessments enable investors to identify companies with credible transition strategies.
integrated workflow model (1).jpg16.17 KB Across our projects, the TPI Centre has developed an integrated workflow model that meets complementary objectives (see image above). We are able to create high-quality assessment data using our pioneering and detailed assessment methodologies. These assessments encompass a growing universe with increasingly timely updates, enabling a breadth of coverage to support wide adoption in investment decision-making. Leveraging the TPI Centre’s academic strength, the methodologies and data form the bedrock of research insights, which explore relationships between entities and sectors as well as other topics relevant to the net zero transition. These insights and related educational outreach support real-world impact, by empowering investors who allocate and stewardship capital to support the transition.
Value proposition The TPI Centre is a leading research centre, producing research and data to inform investment decision-making. We pride ourselves on bringing quality insights, placing independent analysis and transparency at the heart of our outputs. value_proposition_1_optimized.jpg25.47 KB Who uses the TPI Centre's outputs? Our research expertise, independence and strategic support to asset owners place us in a unique position to assist several stakeholder groups that are key to the net zero transition.
rsz_tpi_centre_target_audience_simplified_1.jpg105.32 KB Looking ahead The TPI Centre has grown rapidly since its inception, to meet investor demand. Future goals are to expand our coverage, sectors, research areas and outreach to continue delivering high-quality data and cutting-edge research.
Governance
Advisory Board: Chair (Professor David Webb). Role is to advise on the TPI Centre’s strategic direction and policy matters.
Resource and Development Committee: Chair (Professor David Webb). Role is to advise on the financial sustainability of the TPI Centre.
Technical Advisory Board: Chair (Professor Simon Dietz). Role is to conduct methodology reviews and provide technical advice on its research outputs.
Management Committee: Chair (Dr Carmen Nuzzo).Role is to oversee the TPI Centre’s research and operational running.
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