Launch of Transition Plan Taskforce framework
The launch of the Transition Plan Taskforce (TPT) best practice disclosure framework at the London Stock Exchange on Monday this week brought together an impressive roster of speakers to discuss the significance of effective transition plan disclosures in driving at-scale climate transition.
Organisations worldwide are setting net zero goals for sustainable transitions. But how will they achieve those goals? A careful, credible plan for that journey involves documented transition plans. This week the Transition Plan Taskforce (TPT) launched a best practice Disclosure Framework for climate transition plans.
To date, transition plans have varied in quality and content – creating a need for a high-quality standardised framework to ensure useful data on comparable transition plans are available for investors, regulators and companies themselves. This is where the Transition Plan Taskforce (TPT) comes into play, providing a ‘gold standard’ framework for disclosure of transition plans.
During COP26 in November 2021, the UK Chancellor announced the launch of the TPT as part of the UK’s goal to become the world’s first net-zero financial centre, with plans to make the public disclosure of transition plans mandatory. The TPT’s mission aligns with the UK’s broader regulatory landscape surrounding sustainability disclosures, informing the UK’s future Sustainability Disclosure Requirements. Speakers emphasised the importance of getting started, of honest reflection as well as ongoing review and improvement in what should become an important living corporate governance document.
The TPT aims to extend its influence, fostering the development and convergence of transition plan disclosures worldwide. Central banks, supervisors, standard-setting bodies, and international organisations are increasingly recognising the importance of transition planning. The TPT Framework is designed to align with the final climate-related disclosure standard (IFRS S2) issued by the ISSB, ensuring integration for global comparability.
Read the announcement and find out more about the TPT here.