This report aims to define the key components of a credible transition plan, relevant to companies of different sizes and applicable across a range of sectors and geographies, that are consistent with the requirements of investors implementing the Net Zero Investment Framework.
It is a sector neutral framework designed to cover both high and low impact companies. It provides guidance to companies preparing transition plans and to investors intending to assess the disclosure. Both corporate and investor frameworks need to be aligned to streamline information flow and optimise capital allocation.
The five key components of a credible corporate transition plan are:
- Comprehensive, net zero aligned emissions targets.
- A credible strategy to deliver those targets.
- Demonstrable engagement to support the achievement of targets.
- The contribution to “climate solutions”.
- Supporting emissions and accounting disclosure.
This report explains the rationale for each component, plus the supporting sub-components and metrics that enhance credibility and enable progress to be tracked.
