New report offers framework for assessing corporate climate change performance
The Transition Pathway Initiative (TPI), a global initiative led and supported by institutional investors managing $40trn, has published the Sectoral Decarbonisation Pathways Report detailing the sectoral decarbonisation pathways that many investors use to judge whether companies are on track to transition to net zero between now and 2050.
The Grantham Research Institute on Climate Change’s research lead for the TPI, Simon Dietz, said the Initiative is hoping that the pathways will “catalyse the real economy transition plans that we urgently need to avoid the most catastrophic effects of global warming."
The report synthesises the methodologies developed by TPI over the past five years, including TPI’s recent work on 1.5 Degrees aligned sectoral pathways – which are new this year following the publication of the International Energy Agency (IEA) net zero scenario. These pathways are used by investors and investor networks to assess how far companies in their portfolios are aligned with the goals of the Paris Agreement. The pathways and methodology are available for everyone to access. You can read the report here and access all TPI's sector methodologies here.