The Transition Pathway Initiative is an asset owner-led initiative, supported by asset managers and owners with over £2 trillion assets under management. The initiative proposes an analytical framework for understanding how companies are preparing for the transition to a low-carbon economy. It:
- Evaluates and tracks the quality of companies’ management of their greenhouse gas emissions and of risks and opportunities related to the low-carbon transition; and
- Evaluates how companies’ future carbon performance would compare to the international targets and national pledges made as part of the Paris Agreement.
TPI is encouraging investors to use the quality indicators to inform their :
- Investment Research;
- Company Engagement; and
- Shareholder Voting
Minerva: Supporting the TPI with actionable analysis
Timeliness, consistency and accuracy of disclosed data and definitions is essential to ensure an actionable voting position. To help investors with their adoption of the TPI, each of the TPI questions has been mapped to and integrated with the Minerva Sustainability Research and Voting Guidelines.
Minerva undertakes a comprehensive Sustainability Governance analysis for client portfolio holdings at AGM time based on publicly available materials. Minerva’s sustainability data set includes carbon emissions and target data disclosed to shareholders. In addition to annual profiles with relevant five year trend data across the entire range of investable industries, clients can use the Minerva sustainability framework to create custom voting guidance,screen their portfolio for sustainability governance risk and now, as part of the Solactive group, we can offer custom benchmark and index strategies.
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