Who does this affect: Once finalized, the TPT Disclosure Framework will be available for corporations and regulators across the world to use on a voluntary basis. The TPT Disclosure Framework is a set of best practices for the creation and disclosure of transition plans. Transition plans are documents prepared by companies that describe how those companies will achieve their climate targets. The TPT Disclosure Framework does not bind any particular company or jurisdiction. Instead, it supports regulators in drafting guidance for transition plans, with a specific focus on informing UK regulators.
Why has it been introduced: The TPT Disclosure Framework aims to ensure that transition plans are credible and comparable, with the ultimate goals of providing investors with information to make financial decisions, ensuring companies have the right guidance to develop transition plans, and supporting jurisdictions in their net zero commitments
What does it recommend:
The TPT recommends reporting on transition plans across five areas: (1) Foundation, including objectives and priorities; (2) Implementation strategy; (3) Engagement strategy; (4) Metrics and targets; (5) Governance.
The TPT guidance pushes for detailed disclosures to give observers an accurate sense of the maturity of a company’s transition plan. For example, Sub-Element 2.1 of the November 2022 publication asks companies to “[d]isclose the roadmap of short-, medium- and long-term actions the entity will take to deliver on the strategic ambition in its transition plan and achieve its stated objectives and priorities[...].”
When are these standards being developed: The TPT launched in April 2022 with a 2-year mandate to develop best practices for transition planning.
Where is reporting suggested: The TPT recommends reporting in two places. First, they recommend including material information about the company’s transition plan in its financial report. Second they recommend a standalone transition plan document.
Original Text: Publications - Transition Taskforce