2024年全球企业转型报告 TPI State of Transition Report 2024

TPIStateofTransitionReport2024

Transitionpqth·waynitiative

Grantham

ResearchInstitute

onclimatechange

andtheEnvironment

2

TPIStateofTransitionReport2024

TheLSETransitionPathwayInitiativeCentre

TheTransitionPathwayInitiativeCentre(TPICentre)isanindependent,authoritativesourceofresearchanddataontheprogressofcorporateandsovereignentitiesintransitioningtoalow-carboneconomy.

TheTPICentreispartoftheGranthamResearchInstituteonClimateChangeandtheEnvironment,whichisbasedattheLondonSchoolofEconomicsandPoliticalScience(LSE).Itistheacademic

partneroftheTransitionPathwayInitiative(TPI),aglobalinitiativeledbyassetownersandsupportedbyassetmanagers,aimedathelpinginvestors

assesscompanies’preparednessforthetransitiontoalow-carboneconomyandsupportingeffortstoaddressclimatechange.AsofAugust2024,152investorsglobally,representingoverUS$80trillion*combinedAssetsUnderManagementandAdvice,havepledgedsupportforTPI.

*Thisfigureissubjecttomarket-priceandforeign-exchange

fluctuationsand,asthesumofself-reporteddatabyTPIsupporters,maydouble-countsomeassets.

TheTPICentreprovidesresearchanddataon

publiclylistedequities,corporatebondissuers,

banks,andsovereignbondissuers.TheTPICentre’scompanydata:

•Assessthequalityofcompanies’governanceandmanagementoftheircarbon

emissionsandofrisksandopportunitiesrelatedtothelow-carbontransition

•Evaluatewhethercompanies’current

andplannedfutureemissionsarealignedwithinternationalclimatetargetsand

nationalclimatepledges,includingthosemadeaspartoftheParisAgreement

•FormthebasisfortheClimateAction100+NetZeroCompanyBenchmarkDisclosureFrameworkassessments

•Arepublishedalongsidethemethodsonlineandfullyopenaccessat

.

Reportauthors

ThisreportwaswrittenbySimonDietz,AliAmin,AntoninaScheer,AlfieBegley,HayeonCho,

RobertIngham,ValentinJahn,SeyedAlirezaModirzadeh,CristóbalBudnevichPortales,FilipeDaSilva,CarmenNuzzoandBeataBienkowska.

Theviewsinthisreportarethoseoftheauthorsanddonotnecessarilyrepresentthoseofthehostinstitutionsorfunders.Theauthorsdeclarenoconflictofinterestinpreparingthisreport.

Researchfundingpartnersandacknowledgements

TheauthorsgratefullyacknowledgetheorganisationsthatprovidefundingfortheTPICentre,including

ClimateArc,theLondonStockExchangeFoundation,FTSERussellandTPILtd.Thelatterreceivesmoney

fromthefollowingassetmanagers:Abdrn,BNPParibas,LegalandGeneralInvestmentManagement,

MarshallWace,NeubergerBermanandRobeco,aswellasfromselectedassetowners.TheTPICentre

thanksalltheseorganisationsfortheirongoingsupport.TheauthorsalsothankJakeBarnett,DanGardinerandRorySullivanfortheirreviewcommentsonanearlierdraft.

EditinganddesignmanagementbyGeorginaKyriacou.LayoutanddesignbyRFDesign.

ThisreportwasfirstpublishedinSeptember2024bytheTPICentre.

©Theauthors,2024

PublishedunderaCreativeCommonsCCBY-NClicence.

Permissionsrequestsshouldbedirectedto

gri@lse.ac.uk

.

Suggestedcitation:DietzSetal.(2024)TPIState

ofTransitionReport2024.London:TransitionPathwayInitiativeCentre,LondonSchoolofEconomicsand

PoliticalScience.

Contents

TheLSETransitionPathwayInitiativeCentre2

Foreword4

Summary:keyfindings5

1.Introduction8

2.StateofTransition2024

13

2.1.ManagementQuality:companies’carbon

managementandgovernance1

3

2.2.CarbonPerformance:companies’alignment

withtheParisAgreement1

8

2.3.DriversofManagementQualityandCarbon

Performance:companysize,regionandsector

24

3.Towardsaholisticviewofcorporateclimateaction

26

3.1.Signsofapositiverelationshipbetween

ManagementQualityandrealisedemissions

reductionintheshortterm2

6

3.2.ApositiverelationshipbetweenManagement

Qualityandmedium-andlong-termfuture

emissionsreduction2

8

3.3.ManagementQualityandCarbon

Performance:thedefiningcharacteristics

ofleadingcompanies

29

4.Regionalinsightsandchallenges

32

4.1.Geographicalvariationincorporate

climateaction

32

4.2.Potentialexplanationsforgeographical

patternsincorporateclimateaction

35

4.3.Howclimateassessmenttoolscanaddress

regionalchallenges

37

5.Implicationsforinvestors

39

References

41

TPICentrereportauthors

42

Appendix1.TPIManagementQualityindicators

43

Appendix2.CarbonPerformance–

medium-termalignment

47

Appendix3.GapinManagementQualityachievement

betweencompaniesheadquartered

inhigh-andmiddle-incomecountries

48

Disclaimer

50

3

4

TPIStateofTransitionReport2024:Foreword

Foreword

DavidRussell

Chair,Transition

PathwayInitiative

Intheseven-plusyearssincetheTransitionPathwayInitiative(TPI)was

launched,theworldhaschanged.Positively,climatechangehasrisenup

theinvestor,politicalandsocietalagendas,largelyasaresultoftheParis

AgreementthatcametofruitionatCOP21in2015anditscommitmentstoholdtheincreaseinglobalaveragetemperaturetowellbelow2°Crelativetopre-industriallevels.However,theincreasinglycomplexgeopoliticalsituationhascrystallisedafocusonenergysecuritythathasseensomecompanies

takebackwardstepsintheirtransitiontargets.

SincewepublishedthelastStateofTransitionreportin2021,TPIitselfhasbeenthroughsignificantchange.TPI’senduringrelationshipwiththeLondonSchoolofEconomicsandPoliticalSciencehascontinuedandwascementedbythe

launchthereoftheTPICentrein2022.InSeptember2023,AdamMatthewsstooddownasTPI’schair,andIhadtheprivilegeoftakingovertherole.

TheInitiativeisnolessimportanttodayanditsoriginalvisionstillstands:

toprovideinvestorswithopen-accessdataonthelow-carbontransition

thatarebasedonpublicdisclosuresandaresubjectedtoindependent,

academicallyrigorousandtransparentanalysis.Thisprocessalsocontinuestoevolve.Ofparticularnote,theTPICentrehas:

•AddedafifthleveltotheManagementQualitystaircasetohelpdifferentiatebetweenthebestperformingcompanies

•Expandeditsresearchandoutputstocoverbanks

•ContinuedtoprovideanalysisusedbytheClimateAction100+(CA100+)collaborativeengagementprogramme

•StartedtoproduceanalysisfortheASCOR(AssessingSovereignClimateOpportunitiesandRisks)projectonsovereigns.

BeingabletolinkthecountryanalysisundertakenbyASCORwiththe

corporateanalysisisaparticularboosttoTPI’swork,addinganewdimensionthatenablesmorenuancedassessmentofhowregionaldifferencesmay

impacthowcompaniesaddresstransitionplanning.

Theanalysisinthisreportindicatesthatwhilecompaniesareimproving

theirManagementQualityscores,theirCarbonPerformanceresultshighlighttheyarefailingtomeettheirmedium-andlong-termtransitiontargets.

Weknowthatinvestorsunderstandclimateriskbetterthantheyhaveeverdone.AndmanyofthemuseTPIdatatoengagewithcompanies,aswell

astoencourageappropriatetransitionprocessesandperformancethrough,forexample,theCA100+initiative.However,thisreportshowsourworkisfarfromdone.Aswepublish,theworldhasexperiencedaseriesofitswarmestmonthsinrecenthistory.Climatechangeisasystemicrisk;theroleofassetownersandassetmanagersiscrucialinallocatingandstewardingcapital

tosupportthetransition,whilealsosignallingtogovernmentsaroundtheworldtheneedforappropriatepolicyresponses.

Investorsthereforeneedtoredoubletheireffortstoencouragetheentitiesthatissuetheassetsinwhichtheyinvesttotransition,asthisisgoodforbothlong-termreturnsandfortheplanet.WeareconfidentTPIwillremainaninvaluabletooltosupportinvestorsinthiseffort.

5

TPIStateofTransitionReport2024:Summary

Summary:keyfindings

3.1

Average

ManagementQualityscore

<5%

Proportionof

companiesscoring

onanyindividual

Level5indicator–

testingfordetailed,

actionable

transitionplans

1,027

NumberofcompaniesassessedonManagementQualityin17sectors

TheTPICentre’sStateofTransitionReport2024

reviewstheprogressthatmorethan1,000oftheworld’shighest-emittingpubliccompanieshavemadeonrespondingtoclimatechange.CollectivelywortharoundUS$39trillion,thesearethekeypubliccompaniesforbothinvestorsandtheclimate.The

reportalsoshowstheextentofthecorporateclimateactiongap,i.e.thedistancebetweenwhereTPI

companiesarenowandwheretheyneedtobe

iftheinternationaltemperaturegoalsofthe2015UNParisAgreementaretobeachieved.

ManagementQuality

BasedonourManagementQualityframework,

whichtracksmorethan1,000companies’carbonmanagementandgovernancefromLevel0

‘Unaware’toLevel5‘TransitionPlanningand

Implementation’,Level3functionsasthenew

‘parscore’.Mostcompanies(57%)areatthislevel,whichmeanstheyhaverecognisedclimatechangeasarelevantbusinessriskand/oropportunity,

developedapolicycommitmenttoact,setsomekindofemissionsreductiontarget,anddisclosedtheirScope1and2emissions.CompaniesbelowLevel3canbeconsideredlaggards.

30%

Proportionof

companiesaligned

with1.5°Cin2050–

fourtimeshigherthan

inour2021report

+61%

Cumulativeexceedanceof

1.5°Cemissions

intensitypathways

byTPIcompanies,

weightedbymarket

capitalisation

409

NumberofcompaniesassessedonCarbonPerformancein11sectors

ManycompaniesgobeyondwhatisrequiredtoreachLevel3:morethanfourinfivenowhaveaquantitativeemissionstargetcoveringatleastoneofScopes1,2and3,andasimilarshare

havealong-termemissionstarget(withatargetdatemorethanfiveyearsintothefuture).Amongcompaniescoveredbythisreportandassessedinpreviousyears,weobservesteadyprogress,with

aboutthreetimesasmanycompaniesmovingupalevelasmovingdowninthelastyear.

However,onaverage,companiesarestill

wellshortofhavingastrategicapproachto

climate(Level4),andfewerthan5%scoreonanyindicatorforLevel5,thehighestlevel.No

companysatisfiesallLevel5indicators.Emergingdisclosureguidanceandrulesidentifythatbest

practicemeanshavingdetailedandactionable

transitionplansthatalignbusinesspracticesandcapitalexpendituredecisionswithdecarbonisationgoals.Wefindthistobeveryrare.

6

TPIStateofTransitionReport2024:Summary

CarbonPerformance

BasedonourCarbonPerformanceframework,

whichevaluatestheextenttowhichthe

emissionspathwaysofmorethan400companiesin11high-emittingsectorsarealignedwith

meetingtheParisAgreementtemperaturegoals,therehasbeenamarkedincreaseinalignmentovertime.Sincetheresultspublishedinour

State

ofTransitionReport2021

,theshareofcompaniesaligningwith1.5°Cin2050hasincreasedfourfold

to30%,andafurther14%arealignedwithaBelow2°Cscenario.Theimprovementisalsoobserved

whenlookingatthealignmentin2035.

However,atpresentmostcompaniesweassessstilldonotalignwithanyofourlow-carbon

benchmarkscenarios,andtheshareofthose

aligningwithglobaltemperaturegoalsinthe

short(2025)ormediumterm(2035)remainslow,

despitetherecentencouragingimprovements.

Thisindicatesboththathistoricalratesofemissionsreductionhavebeeninadequate,andthat,on

average,companytargetsimplyplanstopostponedeepemissionscutsuntilthe2040s.

Forthefirsttimewegiveanindicationofhow

faroursampleofcompaniesiscumulatively

overshootingtheParisgoals,usingtheconcept

ofCumulativeBenchmarkDivergence.Thephysicsoftheclimatesystemdonotallowforbackloadingaction:toafirstapproximation,globaltemperaturedependsoncumulativecarbondioxideemissions,

meaningthattheentirepathwayofcompany

emissionsmatters.Thereexistsnounambiguous,

scientificallyrigorousanswertothecommonquestionofwhencompaniesmustcomeintoalignmentwithlow-carbonscenarios.However,weightingcompaniesandsectorsbymarketcapitalisation,weestimatethattheworld’shighestemittingcompanieswill

cumulativelyexceedtheir1.5°Cemissionsintensitybudgetbetween2020and2050by61%.Oil&gascompaniesareamajordriveroftheexceedance.

LinkbetweenManagementQualityandCarbonPerformance

ExploringthelinkbetweenManagementQualityandCarbonPerformanceproducesamoreholisticpictureofcorporateclimateaction.

ThereistentativeevidencethatManagement

Qualityispositivelyassociatedwithsubsequent,realisedemissionsreductionsintheshortterm.

Thisisbasedonsomeofourownanalysis,previousandcurrent,andonarecentreportbyFTSERussellthatappliedTPIManagementQualityscorestoa

largesampleofover2,000companies.However,therelationshipisnotfullyrobust.

TurningtofutureCarbonPerformance,wefindthatcompaniesonhigherManagementQualitylevelsdisclosebetterquantitativeemissions/activitydataandaremorelikelytoalignwithglobaltemperaturegoals,aswasthecaseinour

StateofTransition

Report2021

findings.Overall,ManagementQualityandCarbonPerformanceoftenpointinthesamedirection,butitisimportanttorecognisetheydonotalwaysdoso:theyarecomplementarymeasuresandshouldbeconsideredtogether.

Thehighest-achievingcompaniesarenotonly

ambitiousintheemissionstargetstheyset,thusaligningwiththeParisAgreementtemperaturegoals,buttheyarealsomorelikelytodisclose

andquantifytheactionsnecessarytomeet

thosetargets,andtoaligntheirfuturecapitalexpenditureswiththeirtargets.WeuseArtificialIntelligence(AI)toolstoanalyseManagement

Qualitydataattheindicatorlevel,findingwhichpracticesdistinguishthehighest-achieving

companiesinourdatabasefromtherest.

Geographicaldimensions

WealsoanalysethegeographyofManagementQualityandCarbonPerformanceindepth

andfindthatgeographicallocationmatters

–inparticular,companiesheadquarteredin

high-incomeregions,especiallyAustralasia,

EuropeandJapan,scorebetterthanthose

locatedelsewhere.Therearedifferentpotential

explanationsforthispattern,includingdifferencesinregulation,availabilityofresources,industry

composition,andcorporategovernancenorms.

OverlayingTPIdatafromthenew

Assessing

SovereignClimate-RelatedOpportunitiesand

Risks(ASCOR)tool

,wefindthatseveralaspects

ofnationalclimatepolicyarepositivelyassociatedwithManagementQualityorCarbonPerformance,includingthepresenceofnationalnetzerotargets,carbonpricingandmandatorydisclosure.

Theseresultsshowwhichregulatoryleversmight

bemosteffectiveinacceleratingcorporateclimateaction.Theyalsoimplythatwithoutexplicitly

addressingregionalnuances,investorsmay

withdrawcapitalfromhigh-emittingemerging

marketsanddevelopingcountries.Thisrisks

perverseoutcomesintermsofboththeeffectivenessofdecarbonisationeffortsandequity.Wethus

makesomesuggestionsforhowcorporateclimateassessmentsmightbeadjustedtoavoidchokingoffthefinanceneededforthelow-carbontransition.

7

TPIStateofTransitionReport2024:Summary

Implicationsforinvestors

OuranalysissuggeststhattheTPImetrics•DrawonallofTPI’sexpandedassets

shouldbetreatedascomplementary–i.e.bothandcapabilitiestoinformconstructive

ManagementQualityandCarbonPerformanceengagementwithcompanies,industry

needtobelookedattogethertobetterassesstheassociationsandpolicymakers.

Lookingahead,TPIintendstocontinueitsresearch

programmethroughitsTPICentreatLSE,to

progressthatcompaniesaremakinginthelow-

carbontransition.

Furthermore,investorscan:supportinvestors,andfinancialinstitutionsmore

•TakeadvantageoftheexpandedTPIuniversebroadly,advancingthenetzerotransition.These

toevaluateabroadersegmentoftheirportfolios.iflieluiiresn–swioiho

•Placegreaterfocusoncompanies’transitionofcorporatesdoublingtoaround2,000byyear-end,plans,asfacilitatedbytheintroductionofLevelplusmorebanksandsovereignsbeingevaluated–

5intotheManagementQualityframework.alongsideenhancedoutreachactivitiestoboost

•Buildabetterunderstandingofthetheadoptionofourresources.feasibilityofcompanies’supportingplans

andgovernance,consideringcountry-leveloperationalfactorssuchasnationalpoliciesandcorporategovernancenorms.

8

TPIStateofTransitionReport2024:Introduction

1.Introduction

ThisistheStateofTransitionReport2024fromtheTransitionPathwayInitiativeCentre(TPICentre).

Itdocumentstheprogressbeingmadebythe

world’shighest-emittingpubliccompaniestowardsalow-carboneconomy.Thecompaniesanalysedinthisyear’sreportcollectivelyrepresentapproximatelyUS$39trillioninmarketcapitalisation(cap),whichisabout35%oftheglobaltotalofpubliclylisted

equities.Italsoshowstheextentofthecorporate

climateactiongap,i.e.thedistancebetweenwhereTPIcompaniesarenowandwheretheyneedtobe

iftheinternationaltemperaturegoalsofthe

2015UNParisAgreementaretobeachieved.

Thereportcoversmorethan1,000publiccompanies

in17sectors(seeTable1.1).Thesecompanies

typicallyrepresentthelargestholdingsininvestorportfoliosandareoftenthehighestemittersof

greenhousegases.Thedatapresentedinthereportwerepublishedonthe

TPItool

betweenNovember2022andJanuary2024.Thenextcomprehensive

updateofthedatabasewillbeconductedinstagesduringtheremainderof2024.1

Table1.1.SectoralcoveragebytheTPItool

CompaniesassessedonManagementQuality

Marketcap(shareoftotalsector)

CompaniesassessedonCarbonPerformance

Energy

Electricityutilities

124

97%

80

Oil&gas

84

97%

52

Coalmining

54

100%

Notassessed

Oil&gasdistribution

25

100%

Notassessed

Airlines

38

100%

34

Autos

37

100%

33

Shipping

31

100%

26

工

Industrials/materials

Otherindustrials

116

Notapplicable

Notassessed

Chemicals

99

90%

Notassessed

Steel

65

97%

40

Cement

60

100%

45

Paper

36

100%

34

Aluminium

31

100%

24

Diversifiedmining

27

97%

17

goods

andservices

Consumer

Transport

Services

88

Notapplicable

Notassessed

Food

58

90%

26

Consumergoods

54

Notapplicable

Notassessed

1FurtherdetailsontheCarbonPerformancedatauploadareprovidedinthis

TPICentreexplainer.

9

TPIStateofTransitionReport2024:Introduction

Methodology:TPI’stoolforassessing•CarbonPerformanceassessescompanies’

publiclylistedcompaniesre-uisia,yit

Usingpublicdisclosure,weassesscompaniesNationalPledges,Below2°Cand1.5°C.This

ontheirManagementQualityandCarbonenablescomparisonsofcompaniesinhigh-

Performance,twodistinctbutinterconnectedemittingsectorsbothagainsteachother

aspectsoftheirapproachtothelow-carbonandagainstsector-specificbenchmarksthat

transition(seeFigure1.1).ManagementQualityrepresenttheperformanceofanaverage

focusesoninputsandprocesses,whileCarboncompanythatalignswiththeParisAgreement

Performancefocusesonoutcomes:goals.Theassessmentexaminescompanies’

thequalityofcompanies’governance,includingmedium(2035)andlongterm(2050).

•ManagementQualityevaluatesandtracksentirepathwayovertheshort(2025),

reportingandtargetsongreenhousegasTogether,theseassessmentsofferacomprehensive

emissions,andtherisksandopportunitiesviewofcompanies’backward-andforward-

relatedtothelow-carbontransition.Thisanalysislookingprogressonthelow-carbontransition.

nowincludesanevaluationofthecredibilityofcompanies’climatetransitionplans.

10

TPIStateofTransitionReport2024:Introduction

Figure1.1.TheTPItool:methodologies

ManagementQuality

Assessmentcoverscompanies’governanceofgreenhousegasemissionsandtherisksandopportunitiesarisingfromthelow-carbontransition.

Level0

Unaware

1.Acknowledgesclimatechangeasasignificantissue?

Level1

Awareness

Level2

Buildingcapacity

Level3

Integratedintooperational

decision-making

Level4

Strategic

assessment

2.Recognises

climatechangeasarisk/

opportunity?

3.Policy

commitmenttoact?

4.Setsemissionstargets?

5.DisclosesScope1&2emissions?

6.Board

responsibility?

7.Quantitative

emissionstargets?

8.Disclosesany

Scope3emissions?

9.Hasoperationalemissionsverified

10.Supports

domesticandintl.mitigation?

11.Hasprocesstomanageclimaterisks?

12.Discloses

materialScope3emissions?

13.Setslong-termemissionstargets?

14.Incorporatesclimatechangeintoexec.

remuneration?

15.Climaterisks/opportunitiesinstrategy?

16.Undertakes

climatescenarioplanning?

17.Disclosesaninternalpriceofcarbon?

18.Discloses

actionsto

meettargets?

Level5

Transition

planningand

implementation

19.Quantifiesemissions

reductionstrategy?

20.Clarifiestheroleofoffsetsand/orneg.

emissions

tech(NETs)?

21.Phase-outofcapexincarbon-intensiveassets?

22.Capexanddecarbonisationgoalalignment?

23.Climatepolicyandtrade

associationmembership?

Note:SeeAppendix1forthefulllistofManagementQualityindicators.

CarbonPerformance

Assessmentcoversquantitativebenchmarkingofcompanies’emissionspathwaysagainstdifferentclimatescenariosconsistentwiththe2015UNParisAgreement.

Emissionsintensity

1,000

800

600

400

200

0

Historical/currentemissionsintensity--Futureemissionsintensity

20152020202520302035204020452050

Year

IllustrativeCompanyB

IllustrativeCompanyA

NationalPledges

Below2ºC

1.5ºC

IllustrativeCompanyC

11

TPIStateofTransitionReport2024:Introduction

SevenprincipleshaveguidedourapproachtodesigningtheTPImethodologies:

1.Companyassessmentsshouldbebasedsolelyonpubliclyavailableinformation.

2.Indicatorsshouldbeassessableobjectively.

3.ManagementQualityindicatorsshouldberelevanttoallcompaniesinallsectors.

4.CarbonPerformancebenchmarksshouldbesector-specifictorecognisedifferentdecarbonisationchallenges.

5.Dataprovidedshouldbeusefultoinvestorsfortheirinvestmentprocesses,includingengagementwithcompanies.

6.Indicatorsshouldbuildonexistinginitiativesanddisclosureframeworks.

7.Indicatorsshouldbepitchedatahighlevelofaggregationandappliedtothecompanyasawhole.

12

TPIStateofTransitionReport2024:Introduction

DevelopmentoftheTPICentre

TPIwaslaunchedin2017withtheGranthamResearchInstituteonClimateChangeandtheEnvironmentattheLondonSchoolofEconomicsandPoliticalScience(LSE)asitsacademicpartnerandFTSERussellas

itsdatapartner.Thepartnershipaimedtoproviderigorousandindependentresearchforinvestorsonthefinancialandcorporateworld’stransitiontoalow-carboneconomy.Itledtothecreationoftheopen-access

TPItool

,whichinitiallycovered40publiclylistedcompaniesintwosectors:oil&gasandelectricity.Eachyearthenumberofassessedcompanieshas

increased,asshowninFigure1.2.

RecognisingtheimpactoftheTPItool,in2022LSEexpandedtheacademicteambyestablishingthe

TPICentre,withsupportfromTPILtd.,2Climate

Arc,LSEGFoundationandFTSERussell.Aswell

asassessingpubliclylistedcompanies,todaythe

Centrealsoassessesbanksagainstthe

NetZero

BankingAssessmentFramework

,andsovereign

bondissuersagainstthenewframeworkofthe

AssessingSovereignClimate-RelatedOpportunities

andRisks(ASCOR)

project.3Italsoprovidesregularupdatesonthefocuscompaniesofthe

Climate

Action100+initiative

.

InformationontheCentre’sworkinadditiontothisreport’sfocusonthedecarbonisationprogressofpubliclylistedcompaniescanbefoundonthe

TPIwebsite

.

Figure1.2.MilestonesinthedevelopmentofTPIandtheTPICentre

Transi

LaunchofFTSETPITransitionIndex

2020

LaunchoftheTPICentre

2022

Launchof

theAssessing

Sovereign

ClimateRelated

2024

LaunchoftheTransitionPathwayInitiative

2017

Stateof

Stateof

Stateof

Stateof

-

Opportand

unities

RiskStateof

Trans

ition

Trans

ition

Trans

ition

Transition

(ASCOR)

projectTransition

Report

2018

Report

2019

Report

2020

Report2021

20

23

Report

10

5

274

332

332

1,0

27

comp

anies

comp

anies

comp

anies

comp

anies

comp

anies

in3s

ectors

in14s

ectors

in16s

ectors

in16s

ectors

in17s

ectors

TPIStateof

Report2024

tion

project

2022

TPIwins‘FinancefortheFutureAward’from

theInstitute

ofChartered

Accountants

inEnglandand

Wales

2018

TPIwins

‘EnvironmentalFinanceESGTool

oftheYearinthe

2024Sustainable

Investment

Awards’

2024

TPIwins

‘AssessmentTool

oftheYear’at

theSustainable

Investment

Awardshosted

byEnvironmental

Finance

2020

LaunchofTPIBanking

TPIwins

Principlesfor

Responsible

Investment’s(PRI)

‘ESGIncorporation

oftheyear’forthe

FTSETPIClimate

TransitionIndex

2020

2Since14October2021,TPIhasbeenregisteredasTransitionPathwayInitiativeLtd.bytheUK’sCompaniesHouse.

3ASCORisthefirstpubliclyavailable,independentandopen-sourceinvestorframeworkanddatabaseassessingtheclimateactionandalignmentofsovereignbondissuers.See

/and

/ascor

13

TPIStateofTransitionReport2024:ManagementQuality

2.StateofTransition2024

ThissectionpresentsTPI’slatestfindingsonManagementQual