The Transition Plan Taskforce (TPT) has launched a best practice Disclosure Framework for transition plans, which aims to support companies and financial institutions in contributing to the shift to net zero.

It seeks to provide the basis for companies and financial institutions to outline credible and robust transition plans as part of annual reporting on future strategies.

Taskforce members responsible for creating the Disclosure Framework include Aviva, Legal & General Investment Management (LGIM), Nest and Railpen.

The framework is based on the principles of ‘ambition, action and accountability’, and aims to support the creation of consistent, comparable company reports, and to reduce the level of disclosure complexity.

It also includes additional guidance for those preparing and using transition plans, including on the climate transition planning cycle, legal considerations and web-based implementation.

The framework builds on the baseline of disclosures developed by the International Sustainability Standards Board and draws on the work of the Glasgow Financial Alliance for Net Zero, both of which are TPT members.

Commenting on the framework launch, TPT co-chair and Treasury Lords Minister, Baroness Penn, said: “Under our COP26 leadership the government set out our vision for the UK to be the world’s first net-zero aligned financial centre.

“Launched only in April 2022, the TPT has now delivered on its core mandate to develop a framework for private sector climate transition plans.

“As we move towards meeting net zero in a pragmatic and proportionate way, we recognise the value of the transparency and accountability offered by transition plans which help firms in their own journey.”

TPT co-chair and Aviva group CEO, Amanda Blanc, added: “It’s great to see more and more companies announcing their net-zero ambitions, but these are of little use if there’s no action or accountability.

“Backing up net-zero ambitions with high-quality and clear transition plans is crucial if we are to collectively deliver net zero.

“The TPT Disclosure Framework will help businesses understand just what makes a climate transition plan robust and credible.”

Also commenting on the launch, LGIM CEO, Michelle Scrimgeour, stated: “Companies are developing their transition plans to deliver on their net zero commitments, but as investors we lack the information needed to assess credible progress towards these at scale.

“Filling this gap, the TPTs disclosure framework and supporting materials will enable consistent and comparable reporting of transition plans across firms and sectors.

“We commend the efforts of all involved and will be advocating for widespread market adoption of the framework, as well as the supporting policy and regulatory environment, as we continue to develop our longstanding engagement on the climate transition.”

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