Transition Credibility Assessment Methodology Document

This document is a methodology guide for the Transition Credibility Assessment, which evaluates the credibility of corporate decarbonization plans in alignment with global net-zero goals. The primary objective is to assist investors in identifying companies at risk or with opportunities related to low-carbon transitions, particularly those with carbon-intensive operations. The assessment framework is sector-specific and integrates both quantitative performance evaluations and qualitative disclosures. It outlines criteria for assessing company performance against net-zero pathways and the quality of climate-related disclosures. The document details the rating system, which categorizes companies into High, Medium, or Low credibility based on their adherence to established performance and disclosure criteria. It also discusses the data sourcing and quality assurance processes, as well as the governance of the methodology. This comprehensive approach aims to provide a robust framework for evaluating corporate climate strategies.