UK TPT publishes final recommendations on credible and robust climate transition plans

The UK Transition Plan Taskforce (TPT) has released its final recommendations, establishing a 'gold standard' in climate transition disclosures.

The TPT Disclosure Framework, which is a set of good practice recommendations, aims to facilitate high-quality, consistent, and comparable transition plan disclosures. It provides a roadmap for organisations in the private sector to formulate and report credible and robust climate transition plans as part of their annual reporting on forward business strategy. These plans should encompass a company's strategic climate ambition, implementation and engagement methods, governance and accountability arrangements, and financial plans. They should take a strategic, rounded approach that details how an organisation will meet climate targets, manage climate-related risks, and contribute to the wider climate transition.

While the TPT's work primarily targets UK organisations, it has sparked considerable interest worldwide. Elements of the TPT framework could be adopted by regulatory authorities globally. Additionally, the TPT recommendations can assist entities in reporting transition plan-related aspects of the International Sustainability Standards Board (ISSB) standards.

The TPT and FCA urge organisations to adopt these best practice recommendations promptly and will be consulting in late 2023/early 2024 on mandatory disclosure of transition plans. The new requirements are anticipated to come into force for accounting periods from January 2025, with the first reporting beginning from 2026. 

This move will enhance the information available to investors and lenders, aiding in improved capital allocation decisions. It will also assist companies in adapting their business models, operations, and services for a sustainable future, and combat allegations for greenwashing.

For more information, see our detailed client briefing.