London Stock Exchange Welcomes the Transition Pathway Initiative

London Stock Exchange Welcomes the Transition Pathway Initiative

To mark the second anniversary of Transition Pathway Initiative (TPI), today The Most Revd and Rt Hon. Justin Welby, the Archbishop of Canterbury attended the London Stock Exchange Market Open ceremony today. TPI was established as a joint initiative between the Church of England National Investing Bodies (Church of England Pensions Board, the Church Commissioners and CBF Funds) and the Environment Agency Pension Fund in January 2017 and is an online tool to identify and monitor how individual companies are positioning themselves for the transition to a low-carbon economy.

TPI is now supported by approximately 30 asset owners and managers with over $9.3 trillion (£7 trillion) * AUM. Aimed at investors and free to use, it assesses companies’ preparedness for the transition to a low-carbon economy, supporting efforts to address climate change and is used by investors to inform investment research and support their engagement with companies.

After the Market Open, the TPI held a summit with attendees including Chairs, CEOs and CIOs from the top asset owners in the world. The TPI summit, ’Asset Owners State of Transition Climate Summit’ was sponsored by FTSE Russell and held at the London Stock Exchange. The event included a keynote speech from the Archbishop of Canterbury, with the Summit focusing on a review of the state of transition to a low carbon economy and a discussion of the interventions that asset owners can made to help shape the transition.

TPI also launched its latest analysis regarding carbon management and performance of 105 of the world’s largest and highest-emitting public companies in three sectors at the heart of climate change: coal mining, electricity and oil and gas. The report updates the assessments published by TPI in 2017.

Adam Matthews, Co- Chair of the Transition Pathway Initiative and Director of Ethics & Engagement for the Church of England Pensions Board said:

”Today’s TPI Summit, attended by the heads and CIOs of major asset owners has allowed us to share the latest TPI analysis of the state of transition in key energy intensive sectors. During the day we worked towards identifying the interventions that need to be made both individually and collectively to further support the goals of the Paris Agreement.”

Mark Makepeace, Chief Executive of FTSE Russell and Director of Information Services for the London Stock Exchange Group said:

“FTSE Russell is delighted to partner with TPI, providing data and expertise on the low carbon transition to help improve issuer-investor engagement around what this transition means for different industries and companies. The green economy now matches the size the of the fossil fuel sector and while capital re-allocation is happening as climate risk is integrated into core benchmarks, there is much more that can be done.”