The Transition Plan Taskforce (TPT) has launched a consultation on guidance to help companies in the private sector prepare their climate transition plans, including for asset managers and owners, and banks.
The sector-specific supplementary guidance covers seven sectors: asset managers, asset owners, banks, electric utilities and power generators, food and beverage, metals and mining, and oil and gas.
The TPT was set up by the UK Treasury to ensure companies develop and publish rigorous and robust transition plans that detail how they will adapt and decarbonise as the UK moves towards a net-zero economy by 2050. In October it launched its ‘best practice’ disclosure framework for climate transition plans.
Today’s consultation is aimed at preparers of private sector climate transition plans, to supplement the disclosure framework and implementation resources for best practice transition plans.
The sector-specific guidance is intended to help preparers interpret the final TPT disclosure framework in more detail for their sector.
The disclosure framework provides the basis for companies to set out credible and robust transition plans as part of annual reporting on forward business strategy.
A company’s transition plan should take a strategic and rounded approach that explains how it will meet climate targets, manage climate-related risks, and contribute to achieving net zero.
Corporate and financial organisations, and interested parties across different sectors are invited to respond to the consultation, which is open until 29 December 2023.
Kate Levick, co-head of the TPT, said: “TPT is delighted to achieve the next step delivering on its mandate to provide real-life detailed guidance to help companies in their journey to climate transition and to a net-zero economy.
“We call on companies to read the relevant drafts and tell us what more they need from the final guidance to help them achieve success.”
The sectors selected by TPT will all be important for the UK and global transition, Levick said, and the drafts launched today are intended to “support the delivery of credible and robust transition plans by firms, which can stimulate investment and economic growth”.