The launch of the new framework for companies to disclose their climate transition plans has been announced by the UK’s Transition Plan Taskforce (TPT).

According to TPT Co-Chair and Aviva Group CEO Amanda Blanc, the updated disclosure framework is designed as companies increasingly announce net zero commitments, however, many have not released their plans to hit their goals, with plans that have  been disclosed differing in terms of quality, consistency and level of detail.

Blanc said: “In recent years, we have seen a wave of private companies announcing their ambitions to contribute to net zero. We now need financial firms and companies to come forward with high quality plans to show how they will meet their targets.”

Rishi Sunak, the UK Prime Minister announced at COP26, and officially launched in April 2022 the formation of the TPT. Sunak subsequently announced that the UK will introduce the obligations for mandatory disclosure of net zero transition plans from UK financial institutions and listed companies. The HM Treasury also set out its plans to establish the taskforce, composed of industry and academic leaders, regulators, and civil society groups, in order to develop a “gold standard” for transition plans, as a way of avoiding greenwashing.

The news of the TPT Disclosure Framework also includes the requisites for companies and financial institutions to develop gold-standard transition plans, and the TPT Implementation Guidance, depicting the pathway to develop a transition plan, as well as when, where and how to disclose their plan.

Drawn from existing and emerging standards and recommendations, including the TCFD recommendations, the Glasgow Financial Alliance for Net Zero (GFANZ) and the International Sustainability Standards Board (ISSB), the new Disclosure Framework will inform future regulation in the UK, and the accompanying Implementation Guidance.

TPT Steering Group member, and LSEG CEO David Schwimmer, said: “Financial markets can only play a central role in de-carbonising our economy with access to high quality, consistent and comparable data.  As other countries consider mandatory transition plans, this work could inform similar regulatory approaches around the world.”

The TPT stated that the framework and guidance are open for public consultation until February, and that it will use the consultation and Sandbox feedback to conclude the steps.

Sacha Sadan, ESG Director of the UK’ Financial Conduct Authority (FCA) said that the regulator’s main objective is to use the final outputs from the TPT to consolidate its transition plan disclosure expectations for those companies affected.

Sadan said: “We strongly welcome today’s publication of the Transition Plan Taskforce’s Disclosure Framework and Implementation Guidance. The FCA has been actively involved in the development and drafting of these initial outputs.”

Click here to access the Disclosure Framework and Implementation Guidance.

Source: ESG Today