A taskforce created to develop a ‘gold standard’ for UK companies' climate transition plans has asked the industry for feedback on the framework.
The UK Transition Plan Taskforce this week (May 11) launched a call for evidence on the key principles of a credible transition plan.
It has asked UK companies to contribute feedback on its ‘sector-neutral’ framework, including its proposed three principles to guide firms when preparing their transition plans.
These are aligning with an economy-wide net zero transition, focusing on concrete actions which emphasise the near-term and are backed up by clear governance, and enabling periodic reporting and transparent verification.
Economic secretary to the Treasury and co-chairman of the taskforce, John Glen, said the call for evidence was the first of many opportunities for stakeholders to have a say.
“By creating the gold standard for transition plan disclosures, we are helping investors to mobilise the capital needed to accelerate the net-zero transition and holding companies to account for their emission reduction pledges.”
Chief executive officer of Legal and General Investment Management, Michelle Scrimgeour, said there was a need for common standards and policies to support how businesses framed their action plans.
“It is only by working together that we can bring about the significant shift that is needed in the face of climate change.”
The taskforce was launched in April this year, and has a two-year mandate from the government to establish good practices for financial firms and company transition plans.
The framework for credible climate transition plans will inform future UK regulations for transition plan disclosures, and certain financial sector firms and listed companies will be required to publish a climate transition plan from 2023.
The consultation closes on July 13, after which the taskforce will develop and publish the framework.
Since January 1 this year, a number of UK companies are required to disclose climate-related information as part of the TCFD.
This includes regulated asset managers, who now have to disclose the climate-related attributes of their products.