The Transition Plan Taskforce (TPT) calls for organisations to rapidly embed climate transition plans into their strategy

  • 18 December 2023
  • Blog | Green Finance | Blog

The UK Government announced in 2021 that it would move to make the publication of transition plans mandatory across the economy. To support delivery, HM Treasury launched the Transition Plan Taskforce (TPT) in April 2022, which brings together leaders from across finance, corporates, civil society, academia, government and regulators to develop a ‘gold standard’ for transition plans.

In October 2023, the TPT launched its Disclosure Framework, which sets out good practice recommendations for transition plan disclosures. In November, the TPT further launched seven draft Sector Deep Dives, including one focused on Banks, which are open for consultation until 29 December 2023. View the Banks Sector Guidance here along with consultation form and a recorded explainer presentation.

Why transition plans matter

The transition to a low-greenhouse gas (GHG) emissions, climate-resilient economy will require fundamental transformations in business and finance. Companies and regulators around the world are increasingly realising that transition planning, embedded in corporate strategy, is a critical tool to deliver this.

Transition plans can help companies develop a vision for what role they want to play in tomorrow’s economy, and what steps they need to take now to get there. The disclosure of these plans will allow investors to make more informed lending, underwriting and investment decisions, enable transition finance to scale with integrity, and support policymakers and regulators in identifying concentrations of climate-related risks, as well as barriers to the transition.

How the TPT’s work can support your transition planning journey

The TPT’s Disclosure Framework is accompanied by a wealth of additional materials, now available at These include web-based guidance on each TPT Sub-Element (see “Explore the Disclosure Recommendations”, guidance on how to start or continue your transition planning journey (see “The Transition Planning Cycle”), mapping and comparisons to other key global reporting frameworks, as well as guidance on the legal considerations of disclosing a transition plan.

While the core materials are designed to be sector-neutral, the TPT has also published a suite of sector guidance. This includes the TPT Sector Summary, which provides a high-level overview of recognised decarbonisation levers and metrics for 40 sub-sectors. This guidance was published for comment in October and will be updated in spring 2024.

In November, the TPT also published Sector Deep Dive Guidance for consultation for Asset Managers, Asset Owners, Banks, Electric Utilities & Power Generators, Food & Beverage, Metals & Mining, Oil & Gas. These documents are designed to be used alongside the TPT Framework and provide an additional layer of depth and detail for preparers in each particular sector. The TPT is inviting users and preparers of transition plans within these sectors to provide feedback via the consultation that is open until 29 December.

The Banking Sector Guidance

The Banking guidance, for example, provides suggestions for banking-specific disclosures and additional considerations for 10 of the 19 sub-elements in the TPT Disclosure Framework. These include 3.1 Engagement with value chain, and 3.3 Engagement with government, public sector and civil society, recognising the particular role of client and government engagement in the transition journey of a Bank. It is worth noting that the draft guidance focuses on commercial and retail banking activities. The TPT encourages respondents to provide feedback on whether and how to further incorporate investment banking activities.

Together, the TPT outputs equip preparers and users of transition plans with the tools required to develop credible and robust plans. The TPT recommends that companies should take a strategic and rounded approach in their transition planning, looking not only at how they will achieve their decarbonisation targets, but also at how they will manage climate-related risks and opportunities, and contribute to the economy-wide climate transition.

This work recognises that transition planning is not a ‘once and done’ activity. The uncertainties in the planning process are as inevitable as they are wide ranging – be they related to data gaps, policy, technology, or the changing climate itself. It is important to get started now, but to know that plans will evolve and mature over time. The TPT therefore recommends that companies approach transition plans as an iterative journey, and regularly update their plans.

TPT in the global landscape

The TPT is already informing future regulation in the UK. The Financial Conduct Authority (FCA) has committed to consult on strengthening requirements for transition plan disclosures in line with the TPT Framework, alongside its consultation on implementing UK-endorsed ISSB Standards. The UK Government has also committed to consult on transition plan requirements for large public and private companies.

In addition, global momentum on transition planning has continued to build throughout 2023. In addition to the rising number of private companies publishing their first plan, there have been key policy announcements related to transition plans:

  • in May, G7 leaders highlighted the need for companies to underpin Paris-aligned, net-zero commitments with credible transition plans.
  • in June, the International Sustainability Standards Board (ISSB) released its two inaugural standards, which include several provisions related to transition planning.
  • in September, the G20 Sustainable Finance Working Group released a report that calls on financial institutions and corporations to develop and disclose transition plans.
  • in October, the Monetary Authority of Singapore launched a consultation on transition planning guidelines for financial institutions.
  • in November, the Australian Treasury unveiled a draft Sustainable Finance Strategy, which includes net zero transition planning as a key priority.
  • in December, the European Union mandated the European Central Bank to assess bank climate transition plans.

The TPT has ensured its outputs align with other global frameworks and standards. In particular, the TPT’s Framework complements, and builds on, the ISSB Standards. It also draws on the components identified by GFANZ of a good transition plan, ensuring the outputs of both initiatives lock together to form an integrated approach to transition planning.

Don’t wait to get started on your transition plan

The TPT urges companies to get started on their transition planning journey, engage with our outputs, and provide feedback to the sector drafts.