The Transition Plan Taskforce (TPT), first announced by the UK at COP26, today delivers a best practice Disclosure Framework for climate transition plans so companies can play their part in the shift to net zero.
Major companies and financial institutions including Aviva, Legal & General Investment Management, London Stock Exchange Group (LSEG), NatWest, and Unilever are Taskforce members responsible for creating the Disclosure Framework.
The Disclosure Framework is informed by the principles of Ambition, Action and Accountability. A company’s transition plan should take a strategic and rounded approach that explains how it will meet climate targets, manage climate-related risks, and contribute to achieving net zero. The Framework provides the basis for companies to set out credible and robust transition plans as part of annual reporting on forward business strategy.
The documents published today build on the global baseline of disclosures developed by the International Sustainability Standards Board (ISSB) and draws on the work of the Glasgow Financial Alliance for Net Zero (GFANZ). Both are Taskforce members.
The Disclosure Framework will support the creation of consistent, comparable company reports, and reduce the level of disclosure complexity faced by firms. Publication of the Disclosure Framework is an example of UK climate leadership, and part of its COP26 legacy. The TPT’s work has already attracted significant interest from other jurisdictions.
Additional guidance for preparers and users of transition plans has been published today alongside the Disclosure Framework. This guidance includes:
- High-level guidance across 40 sectors
- Guidance on the climate transition planning cycle
- Technical mappings and comparisons between the Disclosure Framework and several other well-known reporting frameworks (see Notes to Editors)
- Legal considerations for companies preparing reports using the Disclosure Framework
- Web-based implementation guidance
Amanda Blanc, Group CEO Aviva Group, Co-Chair, Transition Plan Taskforce, said:
“It’s great to see more and more companies announcing their net zero ambitions, but these are of little use if there’s no action or accountability.”
“Backing up net zero ambitions with high quality and clear transition plans is crucial if we are to collectively deliver net zero. The TPT Disclosure Framework will help businesses understand just what makes a climate transition plan robust and credible.”
Baroness Penn, Treasury Lords Minister, Co-Chair, Transition Plan Taskforce, said:
Under our COP26 leadership the government set out our vision for the UK to be the world’s first net-zero aligned financial centre.
Launched only in April 2022, the Transition Plan Taskforce has now delivered on its core mandate to develop a framework for private sector climate transition plans.
As we move towards meeting net zero in a pragmatic and proportionate way, we recognise the value of the transparency and accountability offered by transition plans which help firms in their own journey.
Matt Scott, Executive Director, UK Centre for Greening Finance and Investment
‘The publication of the TPT’s final recommendations is a key inflexion point in our collective journey to respond to climate-related risks, capture opportunities and accelerate the transition. By focusing on a strategic and rounded approach firms can move beyond ‘paper decarbonisation’ and align financial flows with a net zero economy, not just a net zero portfolio’.