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Transition Plan Taskforce delivers Disclosure Framework

Author: ICAEW Insights

Published: 06 Oct 2023

The Transition Plan Taskforce (TPT) has released its best practice Disclosure Framework for climate transition plans.

The Transition Plan Taskforce (TPT) Disclosure Framework, released today (Monday 9 October), builds on the Climate-related Disclosures standard issued by the International Sustainability Standards Board (ISSB). It also draws on the work of the Glasgow Financial Alliance for Net Zero (GFANZ). 

Aviva, Legal & General Investment Management, London Stock Exchange Group, NatWest and Unilever are among Taskforce members responsible for creating the Disclosure Framework. 

The Framework lays out principles of ambition, action and accountability when it comes to transition plan disclosures. The guidance states that 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. It provides the basis “for companies to set out credible and robust transition plans as part of annual reporting on forward business strategy”, and aims to support the creation of consistent, comparable company reports, and reduce the level of disclosure complexity faced by firms. 

Additional guidance for preparers and users of transition plans has been published alongside the Disclosure Framework, including guidance on the climate transition planning cycle, technical mappings and comparisons with well-known reporting frameworks, and legal considerations.

The publication of the final Disclosure Framework is a significant milestone in building momentum for transition planning in the drive to net zero, and it means we are one step closer to achieving this important goal, says Michael Izza, ICAEW Chief Executive: “The Framework is a key piece of the puzzle for businesses. For the first time, there is a definitive guide and insight into the risks and opportunities that surround the development and implementation of a climate transition plan.

“I urge colleagues, finance professionals and business leaders to step forward and play their part in enabling and driving forward these plans as we in the business community continue to build momentum towards net zero, in a fair and nature-positive world economy.”  

Amanda Blanc, Group CEO Aviva Group and Co-Chair of the Transition Plan Taskforce, says that while it was great to see more companies announcing their net-zero ambitions, without action or accountability it was of little use. “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.”

Blanc’s fellow Co-Chair, Baroness Penn, Treasury Lords Minister, adds: “The transparency and accountability offered by transition plans is vital to the fundamental shift in business and finance that is required for the economy-wide transition to net zero and a climate-resilient future.” 

• Read more about the latest developments in disclosures on climate transition plans.

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