The Transition Plan Taskforce (TPT) has officially concluded its work and published its final report, summarising the next steps for advancing transition planning globally.

The report seeks to identify key opportunities and challenges for the global adoption of transition plans including building market capabilities, sharing best practices, developing tools for decision-makers, and fostering global consistency in transition planning norms. 

It also revealed that more companies than ever were disclosing their transition plans and aligning their business strategies with net-zero commitments.

In addition to this, it highlighted that financial institutions were increasingly leveraging these transition plans to direct transition finance, driving investments toward sustainable solutions.

TPT also said that internationally, momentum was continuing to grow to establish consistent standards and regulations on transition planning, with an increasing number of jurisdictions adopting the International Financial Reporting Standards (IFRS) S1 and S2 Standard.

Given the IFRS has assumed responsibility for the TPT’s disclosure material these will be utilised worldwide to support the emergence of a global norm on transition planning.

In June the IFRS Foundation took over TPT’s disclosure materials, ensuring global adoption of climate transition plans under the IFRS S2 standard.

TPT has also recently published its Transition Finance Market Review that emphasised scale transition finance, arguing it was “crucial to have credible and consistent transition plans”.

It also urged the government to introduce mandatory disclosure requirements for large listed, private, and financial institutions aligned with the TPT Disclosure Framework.

The taskforce, established by HM Treasury in 2021, aimed to support the creation of consistent, comparable company reports and reduce the level of disclosure complexity faced by firms.

Commenting on the final report, HM Treasury economic secretary, Tulip Siddiq, said she was “pleased” to see the publication of the Transition Plan Taskforce’s Final Report and called it “instrumental in driving this key part of the sustainable finance agenda in the UK and internationally”.

Financial Conduct Authority (FCA) director of environmental, social and governance UK, Sacha Sadan, said the FCA “welcome the high benchmark” the TPT Framework has set for transition plans globally and their most recent report which provides a blueprint for future progress.

Adding to this, Legal and General Investment Management CEO, Michelle Scrimgeour, said: “We support widespread market application of the Disclosure Framework because the need for effective transition planning is vital; without it we will not achieve net zero. Inaction is not an option.”

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