TPI Centre’s State of Transition Report 2024 reviews the progress that more than 1,000 of the world’s highest-emitting public companies have made on responding to climate change.
Collectively worth around US$39 trillion, these are the key public companies for both investors and the climate. The report also shows the extent of the corporate climate action gap, meaning the distance between where TPI companies are now and where they need to be if the international temperature goals of the 2015 UN Paris Agreement are to be achieved.
Our analysis suggests that TPI metrics should be treated as complementary – i.e. both Management Quality and Carbon Performance need to be looked at together to better assess the progress that companies are making in the low-carbon transition.
Furthermore, investors can:
- Take advantage of the expanded TPI universe to evaluate a broader segment of their portfolios.
- Place greater focus on companies’ transition plans, as facilitated by the introduction of Level 5 into the Management Quality framework.
- Build a better understanding of the feasibility of companies’ supporting plans and governance, considering country-level operational factors such as national policies and corporate governance norms.
- Draw on all of TPI’s expanded assets and capabilities to inform constructive engagement with companies, industry associations and policymakers.
