Transition Plan Taskforce (Tpt)

Net zero and transition plans have become new norms in private sector ambition. An increasing number of organisations are making public commitments to reach net zero. Yet existing transition plans vary in detail and quality, limiting the ability of stakeholders to assess their credibility. There is significant demand from the private sector for standardised, high quality plans to make better-informed decisions about how to allocate capital. This will support the UK’s transition to net zero. The TPT is working with international frameworks which are preparing guidance on transition plan disclosures, including the Glasgow Financial Alliance for Net Zero (GFANZ) and International Sustainability Standards Board (ISSB). The Taskforce will take forward the foundational work from these bodies to develop granular transition plan recommendations suitable for incorporation into regulatory frameworks in the UK. Both the ISSB and GFANZ sit on the TPT Steering Group. Along with the UK, many countries are expected to adopt the ISSB’s global baseline and build on it. The TPT should be viewed as a UK jurisdictional initiative to apply and build on the ISSB’s baseline. We hope the TPT Framework will influence the development and convergence of transition plan disclosures in other jurisdictions. To that end, we are engaging with the ISSB, IOSCO and financial regulators in other jurisdictions. The TPT is also engaging with other countries that are developing disclosure and transition plan frameworks. Transition plan disclosures are a key part of net zero financial architecture: they support the shifting of capital and the implementation of Nationally Determined Contributions. The UK’s expectations for transition plans will have an impact on companies around the world, given the UK’s standing as a listing location for international companies and a hub for financial services firms managing global investments.