Target setting, Reporting

UK Transition Plan Taskforce Disclosure Framework

October 2023

The Transition Plan Taskforce (TPT) was launched by the UK’s Treasury in April 2022 to develop a “gold standard” for climate transition plans in the UK,  including Scope 3 category targets. Scope 3 categories aim at reporting and disclosing emissions generated by supply chains and customers, including business travel.. 

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”. It details  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.

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.

UK Financial Conduct Authority Regulation

The Financial Conduct Authority (FCA) is due to consult on proposals for mandatory sustainability disclosure requirements, based on anticipated UK-endorsed International Sustainability Standards Board (ISSB) Sustainability Disclosure Standards. This include Climate Transition plans by companies. 

The intention is for these new requirements to enter into force for accounting periods on or after 1 January 2025 and reporting to begin in 2026.

The FCA is also set to consult on the introduction of guidance for listed companies’ transition plan disclosures which will reference the final outputs from the TPT.

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