Treasury Taskforce launches latest transition plan resources to help businesses unlock finance for net zero
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The Transition Plan Taskforce (TPT), established by HM Treasury and
announced at COP26 in Glasgow in November 2021, publishes its final
set of resources today. 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...Request free trial
The Transition Plan Taskforce (TPT), established by HM Treasury and announced at COP26 in Glasgow in November 2021, publishes its final set of resources today. 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.” NOTES TO EDITORS The event, Unlocking finance and growth through credible transition plans, will be held on Tuesday 9th April 2024 and live streamed from the London Guildhall. Register here. Speakers will include:
Available for comment Dr Ben Caldecott, Co-Head, Secretariat, Transition Plan Taskforce, ben@caldecott.net +44 (0) 7885 611444 Kate Levick, Co-Head, Secretariat, Transition Plan Taskforce, kate.levick@e3g.org +44 (0) 7983 484573 Jacques Morris, Team Leader, Secretariat, Transition Plan Taskforce, jacques.morris@smithschool.ox.ac.uk +44 (0) 7526 702523 Media enquiries: helen.civil@transitiontaskforce.net or phone +44 (0) 7711 734456 Contact the TPT at: secretariat@transitiontaskforce.net Regulatory context: For accounting periods from January 2022, listed issuers, asset managers and asset owners in scope of the UK Financial Conduct Authority's (FCA) climate-related disclosure rules are already expected to describe their plans for transitioning to a low-carbon economy. The FCA intends to strengthen its expectations for transition plan disclosures, drawing on the TPT Disclosure Framework. As a first step, on 10 August 2023, the FCA signalled its intention to consult on transition plan disclosures by listed companies in line with the TPT Disclosure Framework, alongside its consultation on implementing UK-endorsed ISSB Standards. In 2023, the UK government committed to consulting on introducing requirements also for the UK's largest companies to disclose their transition plans if they have them. This consultation will ensure consistency in disclosure requirements for both listed and large private companies. Links with other frameworks: TPT's Framework complements and builds on the International Sustainability Standards Board (ISSB) disclosure requirements and draws on the Glasgow Financial Alliance for Net Zero (GFANZ) framework for transition planning. TPT is also engaging with national and international partners to contribute to the shaping of international norms around reporting and regulation. The TPT has published technical mappings which identify the provisions of the TCFD Recommendations and the ISSB S2 Standard that contain disclosure expectations relevant to transition planning, alongside the relevant TPT Disclosure Recommendation. The TPT has also provided a comparison of the TPT Disclosure Framework with relevant provisions of ESRS 2 General Disclosures and ESRS E1 Climate Change. About the Transition Plan Taskforce: The Transition Plan Taskforce (TPT) was announced at COP26 in Glasgow and launched in April 2022 with a two-year mandate to deliver the gold standard for transition plans. Its mandate has been extended by HM Treasury in order to support the UK's Transition Finance Market Review. The TPT's draft disclosure framework and resources were launched for consultation at COP27 and published in final versions in October 2023. The Secretariat is jointly hosted by the UK Centre for Greening Finance and Investment (CGFI) and E3G. More details on the TPT Website or in the TPT Terms of Reference Supporting organisations on the Secretariat, Steering Group and Delivery Group include: Aldersgate Group; Aviva; Bank of England; CDP; Churches, Charities and Local Authorities (CCLA) Investment Management; CGFI (UK Centre for Greening Finance and Investment); Chapter Zero; Climate Safe Lending Network; CPP Investments (Canada Pension Plan Investment Board); Diageo; E3G; Financial Conduct Authority; the Glasgow Financial Alliance for Net Zero (GFANZ); Green Finance Institute; HM Treasury; the Institute of Chartered Accountants in England and Wales (ICAEW); the International Financial Reporting Standards (IFRS) Foundation; the Institutional Investors Group on Climate Change (IIGCC); Impact Investing Institute; Investment Association; Just Climate; Legal & General Investment Management (LGIM); London Stock Exchange Group (LSEG); London School of Economics; National Employment Savings Trust; NatWest; Ørsted; Railpen; ShareAction; SSE; Unilever; WBCSD (World Business Council for Sustainable Development); WTW; and WWF UK. |