Legal & Regulatory News

HM Treasury launches independent UK Transition Plan Taskforce to develop gold standard for climate transition plans

On 25 April 2022, UK HM Treasury launched the UK Transition Plan Taskforce (TPT) with a two-year mandate to develop a gold standard for climate transition plans. These climate transition plans, also known as 'net zero transition plans', will be required to be published by certain financial and listed institutions from 2023 as part of the UK Government's proposed 'Sustainability Disclosure Requirements'.

The TPT brings together leaders from industry and academia, as well as drawing upon regulators, and will seek to deliver various outputs including:

• recommendations for a 'Transition Plan Disclosure Framework' – this is intended to enable science-based, standardised and meaningful transition plans, covering key elements, including but not limited to: short, medium and long-term targets; specific actions for climate mitigation and adaptation; capex plans; specific sectoral considerations such as fossil fuel phase-out plans and plans for scaling up new investment areas;
• the preparation of detailed sector-specific 'Transition Plan Templates' with associated guidance on metrics and targets, drawing from a body of existing work, including the Taskforce on Climate-related Financial Disclosures' recommendations; and
• the creation of guidance on the role of governance and assurance, third-party verification and the implications of organisational transition plans for reporting.

The TPT's work is intended to drive decarbonisation by ensuring that financial institutions and companies prepare rigorous plans to achieve net zero as well as to support efforts to tackle greenwashing. The UK Financial Conduct Authority will be actively involved with the TPT and the Secretariat is being provided by the UK Centre for Greening Finance and Investment together with E3G.

Click here to access the TPT's Terms of Reference.