Assessing companies on their Management Quality

What is the Transition Pathway Initiative (TPI) Management Quality assessment and why is it useful to investors? The TPI team provide insight into the Management Quality research process and methodology.

Welcome to today's video,which is part of a series exploringthe Transition Pathway Initiative resourcesand datasets. My name is Carmen.I'm joined today by my colleague, Rob.We both work at the Transition Pathway Initiative Centreat the London School of Economics and Political Science.At the TPI Centre,we assess a range of entities onthe transition pathways fromcompanies to banks and sovereigns.And today, we will explore a bitmore in depth how we assess companies,fundamentally with two pillars,the carbon performance and the management quality.Rob, you lead on the work on management quality.Specifically, tell us a bit more about that.So, in essence, the management quality frameworkassesses the steps that companies are taking bothto manage their own greenhouse gas emissionsand also to identify and managethe risks and opportunitiesthey see for their business asa result of climate change and the energy transition.TPI do this incoordination with their data partners FTSE Russell,who supply all of the underlying datafor the indicators within the framework.Companies tend to implementcarbon management practices ina relatively staged and structured manner,and the framework mirrors this by havinga sequential process by which itallocates companies to a staircase.There are five levels onthe current staircase andsix levels on the beta staircase.There are indicators within eachof the levels of the staircase,and a company must meet all of the indicatorsto move on to the next levelor step within the staircase.Rob, that was very insightful.Of course, this was just a teaser of whatthe TPI corporate Online tool does.I encourage you to take a look atour website where you can find out more details,as well as the accompanying video onthe carbon performance pillar ofthe Corporate Online tool. Thank you for watching.

Dr Carmen Nuzzo, Executive Director, TPI Centre, London School of Economics
Robert Ingham, Analyst, TPI Centre