The Transition Pathway Initiative (TPI) has launched a new carbon benchmark for firms, which will allow investors to measure whether a company’s carbon performance is aligned with a 1.5°C scenario.
The 1.5°C benchmark will be its most ambitious yet, the TPI said, and will be released alongside a scenario taking into account national emissions pledges. It will be used for the first time in October when the TPI conducts its annual assessment of the energy sector.
The TPI uses data from FTSE Russell to assess the carbon performance of a firm, as well as the quality of its transition risk and GHG emission management. Firms are then rated on a scale of 0 to 4, and their performance can be compared against sector benchmarks.
The TPI was launched in 2017 in partnership between the Church of England and the Environment Agency Pension Fund and now boasts 108 supporters representing more than $29trn in assets under management, including CalPERS, N…