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Transition Plan Taskforce launches consultation on private sector climate transition plans

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  • UK Government-mandated taskforce will tackle greenwashing and support UK firms in establishing climate transition plans.
  • Today, the Taskforce launches a Call for Evidence on a framework for credible climate transition plans. The consultation period closes on 13th July.
  • The framework will inform UK regulations for certain financial sector firms and listed companies to publish a climate transition plan from 2023

Today (11th May) the UK Transition Plan Taskforce (TPT) has launched a Call for Evidence seeking feedback on the key principles and elements of a credible transition plan. This is the first publication of the TPT, which was launched on 25th April by Treasury Minister John Glen.

Many firms are beginning to publish their plans to get to net zero. Yet there is huge variability in the quality and robustness of these plans, if they are published at all. Credible and appropriately detailed transition plans will be essential for changing this. The TPT has begun developing a Sector-Neutral Framework for transition plans. Today it is launching a consultation on this framework. The consultation asks for feedback on a range of questions regarding the content of a gold standard transition plan. This includes a proposal for three key principles to guide companies preparing transition plans, on which feedback is sought:
  1. Aligned with an economy-wide net zero transition;
  2. Focus on concrete actions which emphasise the near-term and are backed up by clear governance mechanisms; and
  3. Enable periodic reporting and verification in a transparent manner.
The consultation closes on 13th July. After this, the TPT will develop a detailed framework which will inform new requirements from the UK Government for financial institutions and listed companies to publish robust transition plans that detail how they will decarbonise as the UK moves towards a net-zero economy by 2050. John Glen MP, Economic Secretary to the Treasury and co-chair of the Taskforce, and Michelle Scrimgeour, CEO of LGIM, will discuss the TPT as part of a fireside chat on UK green finance at the Net Zero Delivery Summit on 11th May. John Glen, Economic Secretary to the Treasury and Co-Chair of the Transition Plan Taskforce said: “I am delighted to be the co-chair of the Transition Plan Taskforce – a cornerstone of our mission to create a net-zero aligned financial centre. By creating the gold standard for transition plan disclosures, we are helping investors to mobilise the capital needed to accelerate the net-zero transition and holding companies to account for their emission reduction pledges. This call for evidence is only the first of many opportunities for stakeholders to enrich the Taskforce’s thinking and I look forward to receiving your feedback.”   Mary Schapiro, Vice Chair, Glasgow Financial Alliance for Net Zero (GFANZ) and Head of the Secretariat, Task Force on Climate-related Financial Disclosures (TCFD), said: “The UK Transition Plan Taskforce’s Call for Evidence on its Sector-Neutral Framework for private sector transition plans demonstrates successful public-private sector collaboration to develop climate policy that will enable financial institutions to accelerate the decarbonization of the global economy. As Vice Chair of GFANZ and member of the UK TPT Steering Group, I look forward to continuing our work together and hope this encourages further collaboration with governments across the globe as we collectively strive to transition the world to net zero.” Michelle Scrimgeour, Legal and General Investment Management, said: “I am delighted to be a member of this Taskforce to shape the transition to net zero and deliver on the commitments made at COP26. There is a real need for common, robust standards and policies to support how businesses frame their approach and develop their action plans. At LGIM, we recognise the benefits of collaboration: it is only by working together that we can bring about the significant shift that is needed in the face of climate change.” Nicolette Bartlett, Chief Impact Officer CDP, said: We welcome the UK Transition Plan Taskforce taking vital steps towards establishing a strong framework to help companies and financial institutions develop credible transition plans. Transition plans are an essential tool to ensure the UK economy is prepared for a net-zero future. CDP looks forward to supporting the Taskforce by leveraging our disclosure platform, insights and expertise, and continuing our ongoing work in forming a consensus behind what constitutes a credible climate transition plan.”

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