What is a transition plan, and why are around 6,500 organisations planning to develop one in the next year alone?
This briefing from the Climate Governance Initiative explains the global regulatory picture on transition planning, the benefits to an organisation of having a transition plan, and the guidance and frameworks available to board directors to develop these plans.
Key messages for board directors
Transition plans provide comprehensive information on the strategies (technical, financial, governance, etc.) that an organisation will follow to achieve its net zero targets and contribute towards a climate-resilient economy. These must be credible, include interim goals and be transparent to stakeholders.
Board directors play an important role in setting ambitious net zero goals. They should also ensure that transition plans are aligned with, and embedded into, the business strategy. This alignment will help organisations to remain competitive and resilient in the face of climate and financial risks.
Following the deliberate global expansion of climate and nature disclosure, transition planning is expected to become part of voluntary and mandatory requirements for organisations across the world, with guidance and frameworks from the Glasgow Financial Alliance for Net Zero (GFANZ) and the UK’s Transition Planning Taskforce (TPT) taking the first steps.
Want to know more? Watch our recent webinar with Climact, available here:
