Legal & Regulatory News

UK Transition Plan Taskforce publishes consultation on proposed disclosure framework for private sector transition plans

On 8 November 2022, the UK's Transition Plan Taskforce (TPT) published a consultation (the Consultation) on their disclosure framework (the Framework) and an accompanying implementation guide (the Guide) in relation to the proposed introduction of a UK specific disclosure framework for private sector climate transition plans.

The Consultation is part of the TPT's mandate to provide recommendations to inform the UK's regulatory requirements on transition plan disclosures with the aim of developing consistent, robust and credible transition plans.

The Framework sets out three guiding principles for creating credible transition plans: ambition, action and accountability. These principles are used to structure the five recommended elements, which mirror the key components for transition plans recommended by the Glasgow Financial Alliance for Net Zero. These elements include:-

• setting the correct foundation through describing the strategic ambition of the entity's transition plan;
• creating an implementation strategy that includes the short-, medium- and long-term actions the entity will take;
• creating and disclosing the entity's engagement strategy with all stakeholders;
• disclosing the operational metrics and targets used by the entity to assess progress towards its strategic ambition; and
• describing the entity's governance strategy.

In addition, the Guide also sets out steps for developing a credible transition plan, including proposing key stages to preparing a transition plan; when, how and where to disclose the transition plan; and how transition plans are to be used.

The deadline for feedback on the Consultation and Guide is 28 February 2023. Following the end of the consultation, the TPT will reflect on the feedback and will publish the final Framework and Guide in 2023.

Click here to view the Framework.

Click here to view the accompanying Guide.

Click here to respond to the Consultation.