Overview
The Transition Pathway Initiative (TPI) online tool is a publicly accessible database and assessment platform that gauges how companies, banks, and sovereigns are progressing in the shift to a low-carbon economy. It provides quantitative and qualitative data on management practices, emissions trajectories and alignment with climate goals. Finance professionals may find it relevant because it supports climate-transition assessment, corporate benchmarking and risk analysis.
Organisation behind the tool
The tool is maintained by TPI, a global, asset-owner-led initiative supported by asset managers and academic partners. It collaborates with the TPI Centre at the London School of Economics and Political Science and in partnership with data provider entities such as FTSE Russell. It covers companies, banks, sovereigns and bond issuers, extending its coverage via investor networks and public data disclosures.
What the tool does
- Assesses companies on Management Quality (governance of GHG emissions, transition risk/opportunities) and Carbon Performance (actual or planned emissions pathways versus benchmarks).
- Provides sector-by-sector and company-by-company breakdowns (e.g., oil & gas, electricity, transport).
- Offers downloadable data, methodology documents and full assessment results for users.
- Includes a bank-specific module assessing major international banks on decarbonisation strategy, climate governance, financing activities, etc.
- Supports filtering by sector, company and metric, and presents visualisation charts of how companies distribute across performance levels.
Target audience
Primary users include institutional investors, asset owners and asset managers seeking climate-transition data for their portfolios. Secondary audiences are ESG analysts, sustainability researchers, corporate stewards, policymakers and public finance practitioners.
Relevance to finance professionals
- Risk assessment – Enables evaluation of firms’ exposure to transition risk, their preparedness for regulatory/policy shifts, and how future emissions align with stated benchmarks.
- ESG analysis – Supplies governance, strategy and emissions-pathway metrics which are useful for ESG integration and reporting frameworks.
- Market/commodity insights – By offering sector-specific breakdowns (e.g., oil & gas, mining, utilities), the tool helps identify transition stress or opportunity across commodities, energy and infrastructure.
- Investment context – The data supports long-term investment decisions by demonstrating how companies or banks align with global climate goals, and can inform engagement, stewardship or tilting strategies.
