On 31 October 2024, the Transition Plan Taskforce (TPT) will officially conclude its work to establish a gold standard for private sector transition plans.

Final report

The TPT has released its final report, Progress Achieved and the Path Ahead: The Final Report of the Transition Plan Taskforce. This report identifies key opportunities and challenges for the global adoption of transition plans, including building market capabilities, sharing best practices, developing tools for decision-makers, and fostering global consistency in transition planning norms. The TPT’s final report reveals that more companies than ever are disclosing their transition plans and aligning their business strategies with net-zero commitments. The TPT’s work is part of a larger movement towards integrating transition planning into the heart of financial and policy decision-making processes.

IFRS

The TPT’s technical work culminated in June 2024 with a significant endorsement from the International Financial Reporting Standards (IFRS) Foundation, which has assumed responsibility for the disclosure-specific materials developed by the TPT.

Looking ahead

The report identifies four key areas for future collective efforts:

  • Building market capabilities, practice and sharing experiences. In particular, it is critical that firms continue to learn from one another. A survey of UK corporates found that engaging with peers in industry and third parties is viewed as the most effective way to overcome challenges in transition planning.
  • Developing enabling tools and driving thought leadership. For example, while there is important thought leadership examining how the adaptation and resilience performance of transition plans could be assessed, such assessments are not yet available at scale.
  • Ensuring that transition plans are integrated into decision-making. This includes that as market adoption of transition plans grows, more attention will need to be paid to establishing an information feedback loop between private sector transition planning and policymaking.
  • Increasing global consistency in transition planning norms and expectations. In order to realise the multiple benefits of private sector transition plans the market will need globally consistent norms which address the needs and challenges of transitioning entities within all jurisdictions, including emerging markets and developing economies.