The UK government is making efforts to address this via the 'Transition Plan Taskforce’ (TPT), a body with a two-year remit to help companies develop high-quality net zero transition plans. The TPT was created as part of the government’s Green Finance Strategy, which aims to ensure that the UK as a whole reaches net zero by 2050.
Disclosing transition plans isn’t entirely new, of course. Publishing plans on a ‘comply or explain’ basis is already required for some reporters to achieve TCFD alignment, but the regulators now say that this will become a legal requirement.
The Transition Plan Taskforce has already written a draft framework, which outlines what an effective plan should include. The framework is now open for consultation, with a final version likely to be released in the summer. The framework should ultimately serve to strengthen and add depth to current TCFD disclosures. The Taskforce also recommends companies publish a standalone transition plan (i.e. separate from the TCFD section of the annual report), updated at least every three years.
So, what can you do now to get ahead? Reporters should certainly look to the draft Transition Plan Taskforce recommendations, while the TCFD have published high-level guidance on producing a high-quality transition plan (e.g. alignment with corporate strategy, inclusion of climate-related metrics and targets).
There are also several examples of good practice available, with Nestlé, Landsec and SSE forging ahead. The Transition Plan Taskforce’s consultation survey on the disclosure framework and implementation guidance is open until February 28th, and can be found here.
Drop us a line if you would like to chat about how you should be approaching transition planning in your report.
