Navigating the climate transition with TPI Management Quality scores

There is a growing awareness of the value of incorporating climate metrics into investment decision making and stewardship. Discover how investors, corporates and financial services organisations can benefit from the TPI Management Quality scores to benefit from climate metrics.

There is a growing awareness of the value of incorporatingclimate metrics into investment decision making and stewardship.Investors, corporates and financial services organisationsneed trusted data and solutions to help navigate the transition to net zero.The TPI Management Quality Scores provide the data to bring these considerations to life.Covering thousands of securities with historical data going back to 2018,the TPI MQ scores are a credible way to measure the quality of a company'sclimate transition management plans.They provide a critical toolkit to complement and contextualise metricslike emissions and decarbonisation targets and help investorsto meet commitments regarding portfolio alignment to net zero goals.LSEG Data & Analytics via FTSE Russell is the data partnerto the TPI Centre, part of the Grantham Research Institute on Climate Changeto the TPI Centre, part of the Grantham Research Institute on Climate Changeand the Environment, based at the London School of Economics and Political Science.We collect granular data based on company disclosures and calculateMQ scores for a significant universe of listed companiesusing the transparent methodology developed by the TPI Centre.The scores can be used by investors in a number of ways, includingESG integration - by building TPI datainto portfolio construction, stock selection or risk management processes,or even by understanding whether holdings align with the TCFDand are managing risks and opportunities arising from the low carbon transition.This in turn can inform exclusion or selection criteria,for example,investing in high emitting companies that show decarbonisation progress.Secondly, the scores are a great data source for product creation.Parties can work with the data to create financial productsthat capture company commitmentsto the net zero transition, and incentivise more climate aware behaviour by companies.The FTSE TPI Climate Transition Index is a great example of this in practice.Active ownership is another investor use case. Using the robust datato support engagement with climate laggardsto encourage improvements to their climate commitments,or even using TPI assessments as an input to voting decisions.And finally, portfolio reporting and monitoring.And finally, portfolio reporting and monitoring.TPI assessments provide investors with an intuitive way to understandand communicate their portfolio exposure to company climate commitments.The TPI MQ Scores and the underlying indicators are available alongsideour extensive climate data on the LSEG Data Platform, which is cloud-nativeand uses the latest technologies to ensure highly scalable and secure delivery.The Bulk Service facilitates files containing the entire universeto be downloaded at once - ideal for financial professionalsto actively integrate TPI MQ factors into models, workflows, and analysis.You can find more information on use cases, methodology, and delivery on our website.Thank you very much for watching.

Sam Chenoweth, LSEG Strategy & Partnership Manager