UK TPT publishes final recommendations on credible and robust climate transition plans
The UK Transition Plan Taskforce (TPT) has developed a ‘gold standard’ for the disclosure of private sector climate transition plans.
The TPT Disclosure Framework and accompanying guidance provide a set of good practice recommendations to help companies across the economy make high quality, consistent and comparable transition plan disclosures, to help them set out credible and robust climate transition plans. Transition plans should take a strategic and rounded approach, which explains how an organisation will meet climate targets, manage climate-related risks, and contribute to the economy-wide climate transition. The TPT Framework recommends disclosure of a company’s strategic climate ambition, and how this is reflected in its implementation and engagement approaches, its governance and accountability arrangements, and its financial plans.
The UK government and the Financial Conduct Authority (FCA), having regard to the TPT recommendations, will be consulting in late 2023/early 2024 on mandatory disclosure of transition plans. The new requirements are anticipated to come into force for accounting periods from January 2025, with the first reporting beginning from 2026. However, the TPT and FCA recommend that organisations start applying the TPT’s best practice recommendations now.
Although the TPT’s work is aimed at UK organisations, it has generated a great deal of interest outside of the UK and we expect that elements of the TPT framework will be picked up by regulatory authorities across the world. The TPT recommendations can also be used to help entities report on the transition plan-related aspects of the ISSB standards.
For more detail on the TPT Framework, please see our client briefing.