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The “TPI State of the Transition Report 2024” by the Transition Pathway Initiative Centre evaluates the progress of over 1,000 high emitting public companies in transitioning to a low-carbon economy.
The report uses two key metrics: Management Quality, which assesses companies’ governance and carbon management, and Carbon Performance, which measures emissions against Paris Agreement benchmarks.
While there has been progress, with 30% of companies now aligning with a 1.5°C pathway by 2050, most still fall short of their medium-term targets, and fewer than 5% meet the highest standards of detailed transition planning.
The report underscores the need for increased investor engagement and stronger corporate commitments to meet international climate goals, suggesting that without concerted efforts, cumulative emissions will exceed the 1.5°C target by 61% by 2050. The findings highlight the importance of holistic evaluation methods that consider both management practices and emissions outcomes to guide investor decisions and policy development.
