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The TPT was initially introduced at COP26 in Glasgow in 2021, with an aim to implement new net-zero disclosure requirements for large businesses in high-emission sectors.
Members of the Taskforce include Aviva, Legal & General Investment Management, the London Stock Exchange Group (LSEG), NatWest and Unilever.
The Taskforce has today (9 April) unveiled its ultimate set of resources, including its widely recognised disclosure framework for transition plans, launched last year, recommending how companies should develop plans and the key elements they should include.
The framework is complemented by a comprehensive set of resources collaboratively developed with more than 600 organisations worldwide, aimed at helping companies secure transition finance.
The materials published by the TPT include sector-specific guidance for industries such as asset owners, banks, electric utilities and power generators.
Research indicates that there is an $18trn investment shortfall required to finance the transition to net-zero energy globally.
Additionally, the resources provide high-level guidance for 30 sectors of the global economy, as well as advice on conducting a transition planning cycle.
Furthermore, the TPT has addressed the opportunities and challenges relating to creating transition plans in emerging markets and developing economies through a dedicated paper. Independent advisory pieces from the TPT Working Groups have explored topics such as adaptation, nature, just transition and SMEs, examining how transition planning can go beyond achieving net-zero.
The TPT’s secretariat co-head Dr Ben Caldecott said: “We need to back up net-zero targets with firm plans.
“Climate transition plans, if suitably ambitious and delivered with appropriate actions and with proper accountability, can help society allocate capital to companies and assets that are actually contributing to meeting the aims of the Paris Agreement, and away from those that aren’t.
“The Transition Plan Taskforce has made available a globally applicable set of resources to help companies to build their transition plan and successfully raise transition finance.”
The outputs from TPT aim to streamline the reporting process for companies, reducing complexity and enabling more straightforward disclosures.
International synergy
The Taskforce notes that its work has garnered interest from other international jurisdictions such as Australia, Brazil, the EU, Japan and the US.
The TPT’s secretariat co-head Kate Levick said: “There is international momentum for transition finance and transition plans are increasingly seen as a key tool.
“The G7, G20 and UN Secretary-General, regulators in other jurisdictions, and users of market information support the development of consistent transition plans to inform decision making and investment. Companies should make a start now rather than risk being left behind.”
Earlier this year in an interview, Levick told edie: “Fundamentally, we are moving towards convergence on sustainability disclosures internationally.”
“We see the International Sustainability Standards Board (ISSB) as the global baseline, with many countries expected to adopt that. So, we’ve built on that very strongly.
“The goal in the end is to support the creation of consistent, comparable company reports and to reduce the level of complexity faced by firms. All of these different expectations should start to become very compatible.”
The UK has pledged to embed the ISSB’s first two standards, launched last summer, in its own national corporate sustainability disclosure legislation.
I see not a whisper of any practical measures actually to generate energy, just money.
Perhaps, in my nineth decade, my powers of comprehension are sadly waning.