Ahead of the COP26 global climate talks in Glasgow, the Transition Pathway Initiative (TPI), an asset owner-backed company climate analysis platform, has launched the TPI Global Climate Transition Centre, which will boost independent company assessments from 400 to 10,000.
The Centre , which is slated to open in early 2022, will provide free, publicly available in-depth data on how these companies are aligned with a net-zero pathway.
It will be based at the Grantham Research Institute on Climate Change and the Environment at the London School of Economics and Political Science.
Blackrock, the world’s largest fund manager, will be backing the Centre bringing the number of asset owners and managers to 110 with combined assets of $40 trn.
“We consistently hear from investors around the world on the need for quality data to inform decision making, and so we are pleased to support TPI as it scales its analysis to provide valuable input,” said Sandy Boss, global head of BlackRock Investment Stewardship.
While a growing number of companies and financial institutions have committed to net-zero emissions across their operations and supply chains by 2050, few have disclosed the steps they will be taken to meet their objectives.
This has raised many questions for investors as to whether these companies will deliver their promises of net zero investment portfolios.
TPI believes that understanding companies’ level of ambition and their speed of travel towards net zero should enable investors and bankers to allocate capital more intelligently.
Adam Matthews, chair of TPI and chief responsible investment officer of Church of England Pensions Board, said the new Centre would “underpin the global climate transition directly empowering all investors to take action and judge climate performance through the same lens”.
“It’s a critical component of the post-Glasgow COP financial infrastructure enabling investors to deliver on their commitments.”
He added “Information drives markets, and the independent freely-available insights from the TPI Global Climate Transition Centre will help markets clearly see which companies are serious about climate and which are not.
“It will enable climate factors to inform decision making as to whether company debt is refinanced as well as support investors to understand the risks and opportunities presented by sovereign debt. For wider society, it will bring transparency and accountability at scale to empower action.”
©Markets Media Europe 2021