Joint AFME and Linklaters report on climate transition plans for the European financial services sector

The Association for Financial Markets in Europe (AFME) and Linklaters have published a new report to help banks in the EU and UK navigate the growing proliferation of initiatives related to climate transition plans. The report takes stock of current and upcoming standards and regulation, highlighting key developments and considerations. 

This report considers climate transition plan developments focusing on the development of international, EU and UK frameworks. It also discusses trends in litigation, and NGO and shareholder scrutiny related to disclosures in climate transition plans. The report aims to provide a helpful reference point for navigating the increasing number of transition plan frameworks, covering not only the content of each of the frameworks but also their legislative timeline.

In recent years, policy has been shifting its focus from requiring disclosure of transition plans to requiring the implementation of transition plans which align with climate targets. This move beyond disclosure to directing business strategy has created potential challenges for companies in implementation, not least because their ability to transition will be dependent on external factors including public policy and the transition of the broader economy. For global groups, it is also unclear how mandated alignment with EU climate targets can be applied across jurisdictions, given the differing pace of the climate transition across the globe. 

Read the report here.

To view other key materials on transition plans, see our Climate transition planning & transition finance collection.