ICAEW CEO Michael Izza has called the the UK Transition Plan Taskforce (TPT)’s Call for Evidence a vital first step towards a sector neutral framework.
The Call for Evidence will help shape the frameworks and benchmarking tools that entities will use to create and implement their net zero transition plans. It will set the gold standard for providing information to markets and stakeholders, and drive greater transparency around how companies are fulfilling their promises, said Izza.
“Transition plans are the cornerstone of turning a net zero ambition into reality. Current global challenges might tempt us to pause the green transition, but this is a false choice. Decarbonising our economies is a necessary condition of our future security and prosperity.”
ICAEW is part of the taskforce and is helping to shape the direction of travel for net zero transition. All sectors must respond to the Call for Evidence to make this a truly robust and credible framework, said Izza. “I urge our members to feed in their views and to encourage their clients to do so too.”
With transition plans already in full swing in some areas, the process will help us share and utilise the knowledge already amassed by those early leaders, Izza explained.
“Our profession has a huge role to play in helping businesses become more sustainable, so I am proud that ICAEW is part of this new taskforce. It’s a great example of key players from across the economy, civil society, government and regulation, collaborating to develop policy and bring about the significant change needed to achieve net zero.”
The UK TPT was launched to develop a gold standard for transition plans by providing a framework and benchmark for financial institutions and companies to use to help them prepare “rigorous transition plans”.
It has a two-year mandate, coordinating industry, academic and regulatory leaders and aligning with international efforts where feasible to do so. The Secretariat is being provided by the UK Centre for Greening Finance and Investment (CGFI) and by E3G.
The Financial Conduct Authority (FCA) will also play an active role with the TPT, using it to strengthen disclosure rules for listed companies and financial firms.
The TPT will develop a Sector-Neutral Framework, Sectoral Templates, and accompanying guidance for private sector transition plans.
The aim of the Sector-Neutral Framework is to enable companies to develop “standardised and meaningful plans” to support the transition of the economy to net zero. The TPT’s Call for Evidence asks for stakeholder input to inform the TPT’s future work on this framework.
A draft will be published for consultation towards the end of 2022, and will be finalised in early 2023. “Stakeholder inputs to this Call for Evidence will also help to inform the approach that will be taken by the TPT in developing Sectoral Templates, which can be used by firms from certain sectors alongside the Sector-Neutral Framework.”
The consultation period closes on 13 July 2022.
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