UK TPT publishes final version of sector-specific guidance on climate transition plan disclosures, including for the financial sector

The UK Transition Plan Taskforce (TPT) published its final recommendations on climate transition plan disclosures, along with implementation guidance in October 2023 (see our previous briefing). The TPT Disclosure Framework and accompanying implementation guidance which are sector-neutral (i.e. not aimed at any particular sector) provide a set of good practice recommendations aimed at facilitating high-quality, consistent, and comparable transition plan disclosures. They provide a roadmap for organisations in the private sector to formulate and disclose credible and robust climate transition plans.

On 9 April 2024, the TPT published the final versions of its sector-specific guidance, covering the following sectors: 

• banks;
• asset owners;
• asset managers; 
• electric utilities & power generators; 
• food & beverage; 
• metals & mining; and
• oil & gas.

The package of final materials also includes: 

• a sector summary, which covers 30 financial and real economy sectors not already covered by the detailed sectoral guidance mentioned above (e.g. this includes consumer goods, health care, infrastructure, renewables, technology & communications, transportation, etc);
• guidance on the how to undertake a transition planning cycle; and 
• a paper on the opportunities and challenges of transition plans in emerging markets and developing economies. 

All of the TPT materials can be accessed via this webpage on the TPT website. 

The TPT advises preparers to first read the Disclosure Framework before reading the sector-neutral and sector-specific guidance. 

The sector-specific guidance gives advice to firms on what they should or may consider disclosing across the five disclosure elements in the TPT Disclosure Framework: foundations, implementation strategy, engagement strategy, governance, and metrics and targets. None of the suggestions in the sector-specific guidance replace the disclosure recommendations in the Disclosure Framework; they are intended to be complementary and to help preparers in specific sectors interpret the Disclosure Framework.

The TPT press release notes that the TPT materials have already attracted significant interest from other jurisdictions, such as Australia, Brazil, the EU, France, Germany, Hong Kong, Japan, Malaysia, New Zealand, Singapore, Thailand, and the US. So the TPT materials will be relevant to companies and the financial sector beyond the UK. 

According to the TPT’s secretariat co-head Kate Levick:

“There is international momentum for transition finance and transition plans are increasingly seen as a key tool. The G7, G20 and UN Secretary-General, regulators in other jurisdictions, and users of market information support the development of consistent transition plans to inform decision making and investment. Companies should make a start now rather than risk being left behind.” 

“We are moving towards convergence on sustainability disclosures internationally. We see the International Sustainability Standards Board (ISSB) as the global baseline, with many countries expected to adopt that. So, we’ve built on that very strongly. The goal in the end is to support the creation of consistent, comparable company reports and to reduce the level of complexity faced by firms”.

For more information on the TPT recommendations, see the following Linklaters materials:

• Client briefing - UK TPT publishes final recommendations on credible and robust climate transition plans
• Video - How to use the new UK TPT guidance to get started on climate transition planning