The Transition Plan Taskforce has published its final report on the progress achieved and the path ahead. The report marks the end of the TPT's efforts to establish a gold standard for private sector transition plans. The 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 final report reveals that more companies than ever are disclosing their transition plans and aligning their business strategies with net-zero commitments. Financial institutions increasingly leverage these transition plans to direct transition finance, driving investments towards sustainable solutions. Internationally, momentum continues to grow to establish consistent standards and regulations on transition planning. The TPT observes that a growing number of jurisdictions are adopting the International Financial Reporting Standards (IFRS) S1 and S2 Standards. With the IFRS assuming responsibility for the TPT's disclosure materials, these will be utilized worldwide to support the emergence of a global norm on transition planning. The report also highlights four key areas where collective efforts could be focused in the future, to mainstream effective transition plans across the economy: (i) building market capabilities, practice and sharing experiences; (ii) developing enabling tools and driving thought leadership; (iii) ensuring that transition plans are integrated into decision-making; and (iv) increasing global consistency in transition planning norms and expectations.
[View source.]
