Transition Pathway Initiative Management Quality Framework

This document is a technical report detailing the Transition Pathway Initiative (TPI) Management Quality Scores, which assess companies' preparedness for transitioning to a low-carbon economy. Launched in 2017, TPI aims to provide investors with a method to evaluate the quality of climate transition commitments alongside emissions-based metrics. The report outlines the TPI Management Quality framework, which includes 23 specific indicators that measure companies' climate governance activities in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. The document explains the evolution of the TPI Management Quality methodology, highlighting the introduction of Level 5 in 2024, which enhances the assessment of companies' transition plans. It also discusses the dataset's unique features, including its evaluation criteria and the benefits of using TPI data for investors. The report emphasizes the importance of TPI scores in facilitating informed discussions between investors and management regarding climate transition strategies.