The Transition Plan Taskforce (TPT) was launched by the UK’s HM Treasury in April 2022 to develop a “gold standard” for climate transition plans in the UK.
Net zero and transition plans have become new norms in private sector ambition: an increasing number of organisations are making public commitments to reach net zero.
The TPT aims to help companies and the financial sector produce science-based climate transition plans that are credible, robust, and “investable”. The plan will prepare detailed sectoral Transition Plan Templates, covering short, medium, and long-term targets, specific actions for climate mitigation and adaptation, capex plans, specific sectoral considerations such as fossil fuel phase-out plans, and plans for scaling up new investment areas.
TPT’s Disclosure Framework is based on 3 principles: Ambition, Action and Accountability. A transition plan should outline ambitious objectives and priorities for contributing to and preparing for a rapid and orderly economy-wide net zero transition. The strategy should cover the whole entity, consider the full range of levers that the entity has available, meaning, any emissions reduction target should consider Scope 1, 2, and 3 emissions. Companies need to take action and create strategies where their targets are met. Businesses should assess the sensitivity of the plan to changes and seek to mitigate delivery risks where possible. For businesses to stay accountable and transparent it’s important for them to support their plans and strategies with robust governance, reporting and verification mechanisms.
Across sectors, entities may establish internal policies that drive decisions and actions to align with their strategic ambition and the stated objectives and priorities. Among different policies regulating entities’ internal operations, one reducing business travel can help achieve their commitments.
Overall, the launch of the TPT highlights the growing importance of climate action for companies and the financial sector, and underscores the need for companies to take responsibility for reducing their emissions to support the global fight against climate change.
Ambitious emissions reduction targets – reducing business travel – accountability and reporting