UK releases sector-specific guidelines for climate transition plans

Transition Plan Taskforce has bolstered adaptation and nature in its final guidance, as well as giving advice to SMEs

The UK has published guidance to help seven sectors developed ‘gold standard’ climate transition plans.

Food & Beverage, Metals & Mining, Oil & Gas, Electric Utilities & Power Generators have all been provided with detailed advice about what should be in their climate strategies, along with banks and investors.

The documents have been produced by the Transition Plan Taskforce, appointed by UK Treasury to help the Government fulfil its commitment to mandate net-zero transition plans across the country’s economy.

“Wherever you sit in the economy, you now have something to help you get started on your transition plan,” said Jacques Morris, team leader at TPT and head of policy at the UK Centre for Greening Finance and Investment.

In addition to the seven ‘deep dives’, TPT has today issued guidelines for SMEs and companies in emerging markets and developing economies, and specific advice about how firms can address the just transition and nature. 

The final guidance places greater emphasis on the role of climate adaptation in transition plans, compared with the draft version, after a recent study from S&P identified serious shortfalls in the current approach to corporate adaptation plans.

“These documents should enable companies to have the necessary internal conversations, to get buy-in from CEOs, CFOs and the board – and across all corporate functions and levels – to make sure that transition plans become a core part of company strategy,” Morris told Real Economy Progress.

Treasury has extended TPT’s mandate so it can now focus on assisting with the UK’s Transition Finance Market Review.

Other sector-specific transition plan efforts

There are numerous voluntary frameworks to help companies in particular sectors create suitable climate transition plans (see chart below).

Later this week, the Transition Pathway Initiative, which helps investors assess the credibility of corporate transition plans, will publish its analysis of food producers.

Accelerate Climate Transition (ACT), set up by the French Government and now run by the World Benchmarking Alliance, is due to publish a transition-plan evaluation of 90 companies in the steel, cement and aluminum sectors later this month.