Legal & Regulatory News

The Transition Plan Taskforce launches its Final Disclosure Framework and Implementation Guidance

On 9 October 2023, the Transition Plan Taskforce (TPT) launched its highly anticipated Final Disclosure Framework and Implementation Guidance. The objective of the framework is to provide a gold standard for transition plans in the UK, encouraging businesses to deliver on their sustainability objectives whilst also managing their climate risks.

The Framework is aligned with and builds on the disclosure standards of the International Financial Reporting Standards and the framework and guidance from the Glasgow Financial Alliance for Net-Zero in order to enable its adoption beyond the UK.

The Framework consists of three overarching principles, ambition, action and accountability, which are applied to five disclosure elements:-

• Foundations;
• Implementation Strategy;
• Engagement Strategy;
• Metrics and targets; and
• Governance. 

The TPT Sector Deep Dives will open for consultation in November 2023, ready to be published in February 2024 alongside the Forward Pathway on transition plans.

In Q4 2023, the UK government will consult on transition plan requirements for large public and private companies. The TPT is encouraging businesses to take forward-thinking action by using the framework to develop their own transition plan ahead of any regulatory requirements. It is hoped that the widespread adoption of transition plans will contribute to the goal of achieving a just transition in which businesses recognize and try to mitigate their impact on nature and biodiversity, as well as reducing their carbon emissions.

Click here to read the Final Disclosure Framework.

Click here to view the Implementation Guidance