The Church of England’s National Investing Bodies and the Environment Agency Pension Fund have launched an online tool to track how companies are shifting towards the low-carbon economy.

The Transition Pathway Initiative (TPI) was created with the Grantham Research Institute at the London School of Economics using data provided by FTSE Russell.

Thirteen international asset owners and five asset managers with over £2 trillion under management joined forces to create the TPI.

The initiative found the most common factors hindering progress come from companies having not set quantitative targets for reducing operational greenhouse gas emissions, nor having had operational emissions data verified.

‘Tipping point’

Adam Matthews, Co-Chair of the Initiative and Head of Engagement for the Church Commissioners and Church of England Pensions Board, said: “The TPI is a tipping point for the market.

“The Initiative will identify companies that are aligned with the transition to the low-carbon economy and those most exposed to climate transition risk.

“There can be no doubt about the seriousness with which asset owners are taking account of this risks and it will be a key feature in the discussions we will be having with companies over the coming years.”

> Read the Church of England's announcement