TPI’s research supports efforts to address climate change by helping investors across the globe to understand which companies are preparing for the transition to a low-carbon economy.
The Labour Party’s Finance and Climate Change Report today seems to have misunderstood both the intentions and the details of our work and has mistakenly omitted a key plank of TPI’s work.
The Finance and Climate Change report states that TPI’s “highest-ranking level, Strategic Assessment, consists of five indicators with a yes/no answer, and includes companies that provide an affirmative answer to some of these questions, without specifying clearly what the benchmarks for those measures are (see Table 5.1). In fact, several of the oil companies that the TPI ranks at the Strategic Assessment level continue to invest heavily in projects that will accelerate global warming, in contradiction with the aims of the Paris Agreement.”
TPI’s publications on corporate preparedness for the low-carbon transition contain two components: assessment of Management Quality and assessment of Carbon Performance. Today’s report entirely omits our Carbon Performance assessment. In this analysis, we were very clear in our critique of the fossil fuel sector. Indeed, one of the opening ‘key messages’ of our latest report stated: “The oil and gas sector is the worst performing TPI sector on Carbon Performance. Only two companies plan to be aligned with the least ambitious benchmark (Paris Pledges) by 2050”
TPI is happy to sit down with the authors of Labour’s report to explain the full scope of TPI’s work to help investors understand climate risks and opportunities in their portfolios – and to work with any party to push forward the decarbonisation that high-emitting companies need to urgently undertake to align with the goals of the Paris Agreement.