Climate Transition Action Plans from a leading NGO coalition
With businesses at various stages of starting, reviewing, enhancing and testing their transition plans, there’s a need for guidance and a shared framework to make more progress more quickly. The UK Transition Plan Taskforce’s proposed framework is a huge step forward and is open for consultation until the end of February 2023. This framework will inform regulatory disclosures.
Other key stakeholders, including the investor community and civil society, are now represented in the definition of a comprehensive transition plan published by a leading NGO coalition. We Mean Business Coalition, CDP, Ceres, and Environmental Defense Fund (EDF) have consulted with Ramboll Consulting to develop a consensus-driven definition of a comprehensive Climate Transition Action Plan (CTAP). They have reviewed 31 transition plan guidance documents from 17 organisations to identify best-in-class practices and common core transition plan elements. The project also surveyed over 100 companies, investors, and other stakeholders on their needs.
The journey to corporate climate credibility is outlined in three steps:
- Set science-based goals
- Develop a Climate Transition Action Plan (CTAP) with four components
- Emissions Reduction Strategy
- Governance and Business Strategy Integration
- Public Policy
- Just Transition
- Establish accounting and reporting
Their definition of a comprehensive CTAP is:
- a forward-looking list of actions
- taken in the near term
- to align internal strategies
- and external climate and energy policy advocacy
- to reduce GHG emissions in line with a 1.5°C pathway
- and achieve a just transition.
Climate Transition Action Plans: Activate your journey to climate leadership
We recommend you familiarise yourself with this report to build your own climate literacy and ability to guide boardroom conversations on transition planning.
Report date: October 2022
Read the CTAP report hereRelated Content
Oliver Wyman Masterclass #1: Transition Planning and your role
In collaboration with the Oliver Wyman Forum, as part of our wider Transition Planning series, Chapter Zero recently launched the first of three interactive, practical transition planning masterclasses. Building from our Getting Started series, these in-depth masterclasses explore transition planning concepts in greater detail. The first masterclass explored the basics and best practices for transition planning, as well as the evolving role of non-executive directors (NEDs) in this space. You can find the key takeaways from the first session below.
Transition Planning = Strategy Planning
The past twelve months have highlighted how companies are not only increasingly experiencing the impacts of climate change but also how they are powerfully positioned to be agents of change, with the ability to curb these impacts and promote long-term sustainability and resilience for the global economy and for society. The need to decarbonise and to achieve net zero commitments is being driven by a range of economic, regulatory and market factors, all of which require companies to respond faster than ever before.
Getting Started: Setting your strategic ambition
In collaboration with BCG, the third module in our Transition Planning series equips non-executive directors with practical tips on how to fully integrate climate transition planning into business strategy.
