Carbon Performance Assessment of aluminium producers: methodology note

The Transition Pathway Initiative Global Climate Transition Centre (TPI Centre) is an independent, authoritative source of research and data on the progress of the financial and corporate world in transitioning to a low-carbon economy. The TPI Centre was established in 2022 at the Grantham Research Institute on Climate Change and the Environment, which is based at the London School of Economics and Political Science (LSE). The TPI Centre is the academic partner of the Transition Pathway Initiative (TPI), a global initiative led by asset owners and supported by asset managers. As of April 2023, over 130 investors globally, representing more than US$50 trillion combined Assets Under Management and Advice, have pledged support for TPI. Using companies’ publicly disclosed data, the TPI Centre: • Assesses the quality of companies’ governance and management of their carbon emissions and of risks and opportunities related to the low-carbon transition, in line with the recommendations of the Task Force on Climaterelated Financial Disclosures (TCFD). • Assesses whether companies’ current and planned future emissions are aligned with international climate targets and national climate pledges, including those made as part of the Paris Agreement. • Provides the data for the Climate Action 100+ Net Zero Company Benchmark. • Publishes its methods and results online and fully open access at www.transitionpathwayinitiative.org and on GitHub. Investors are encouraged to use the data, indicators and online tool to inform their investment research, decision making, engagement with companies, proxy voting and dialogue with fund managers and policy makers, bearing in mind the Disclaimer in section 6. Further details of how investors can use TPI assessments can be found on our website. This note provides an overview of the latest methodology used by TPI in its assessment of the Carbon Performance of aluminium producers. This is the third update to our aluminium sector methodology, following previous publications in February 2019 and 2021.