Treasury Taskforce launches latest transition plan resources to help businesses unlock finance for net zero

The Transition Plan Taskforce (TPT), established by HM Treasury and announced at COP26 in Glasgow in November 2021 has published its final set of resources .

There is now an internationally recognised best practice disclosure framework for transition plans, accompanied by a comprehensive suite of resources to support companies and financial institutions globally to mobilise transition finance.

Aviva, Legal & General Investment Management, the London Stock Exchange Group (LSEG), NatWest, and Unilever have been members of the TPT. The TPT is co-chaired by Dame Amanda Blanc, Group CEO of Aviva and Baroness Vere, Treasury Lords Minister.

TPT outputs support the creation of consistent, comparable company reports, and reduce the level of disclosure complexity faced by firms.

The TPT’s work has already attracted significant interest from other jurisdictions, such as Australia, Brazil, the European Union, France, Germany, Hong Kong, Japan, Malaysia, New Zealand, Singapore, Thailand, and the United States. The TPT has engaged with international coalitions of central banks, supervisors, and regulators as well as multilateral processes such as the G7, G20 and UNFCCC.

The materials published by the TPT on the 9th April 2024 include:

–       Sector-specific transition plan guidance for Asset Owners, Asset Managers, Banks, Electric Utilities & Power Generators, Food & Beverage, Metals & Mining and Oil & Gas.

–       Sector summary guidance, with high level guidance for 30 sectors of the global economy.

–       Guidance on the how to undertake a transition planning cycle.

–       A paper on the opportunities and challenges of transition plans in emerging markets and developing economies.

–       Independent advisory pieces from TPT Working Groups on Adaptation, Nature, Just Transition and SMEs, exploring how transition planning can extend beyond realising net zero.

All documents are available in beta versions at Transition Plan Taskforce – TPT docs for press 040424 – All Documents (sharepoint.com). The final versions will be published at 00:01 Tuesday 9th April 2024.

The TPT’s Disclosure Framework and wider materials have been shaped through engagement and testing with over 600 organisations in the UK and globally, across finance, the real economy and civil society. This includes major firms with global footprints operating in numerous jurisdictions, as well as representatives from emerging and developing economies.

Dr Ben Caldecott, Co-Head, Secretariat, Transition Plan Taskforce, said:

“We need to back up net zero targets with firm plans. Climate transition plans, if suitably ambitious and delivered with appropriate actions and with proper accountability, can help society allocate capital to companies and assets that are actually contributing to meeting the aims of the Paris Agreement, and away from those that aren’t. The Transition Plan Taskforce has made available a globally applicable set of resources to help companies to build their transition plan and successfully raise transition finance.”

Kate Levick, Co-Head, Secretariat, Transition Plan Taskforce, said:

“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.”

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