The banking and fossil fuel sectors are due to be given extra guidance on sharing their net zero plans.
The Transition Plan Taskforce (TPT), a group of experts appointed by The Treasury last year, is set to release a new framework which businesses will be able to use to ensure their climate plans meet up to date standards.
The new guidance, which is due to be published in October, will apply to seven UK sectors including banking, electric utilities and power generators, food and agriculture, metals and mining, oil and gas, asset management and asset owners.
It has been developed based on the International Sustainability Standards Board (ISSB) frameworks, which are disclosure standards backed by the G7, the G20 and the International Organization of Securities Commissions (IOSC).
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TPT co-chair and Aviva Group CEO Amanda Blanc said: “We believe the UK can and should take action to become the world’s most climate-ready developed economy by 2030. Whilst we are in no doubt that tackling climate change will require significant investment against a challenging economic backdrop. We also know that failing to act will cost much more”
“UK listed companies must lead the way in developing credible, consistent, robust climate plans. From October 2023, the Transition Plan Taskforce Disclosure Framework will establish a clear standard that UK companies can follow to set and report against their own transition plans.”
“At Aviva, we can already see the powerful impact of transition planning, so I’m urging all UK listed companied to give it a go and use the TPT framework gives companies a headstart and allows them to learn as they act.”
Treasury lords minister and TPT secretariat co-chair Baroness Penn said: “There is growing international momentum around private sector transition plans, both from industry and policymakers.”
“Over the last six months alone, G7 leaders have come out in support of private sector transition plans, various international regulatory networks have started work on transition planning and a rising number of entities have published their first transition plan.”
“The TPT consultation responses tell us that firms believe international alignment is key. As these efforts unfold, there is a strong need to establish a common global norm on what constitutes a credible, high-quality transition plan. The TPT is actively supporting efforts to build consensus and avoid the proliferation of different standards.”
