Britain on Monday laid out how listed firms and monetary corporations must element their plans to chop polluting carbon emissions as they transition to a web zero financial system by 2050.
The company “transition plans” dovetail with already necessary climate-related disclosure that’s due to get replaced by new requirements from the International Sustainability Standards Board (ISSB).
The blueprint revealed on Monday by the Transition Plan Taskforce (TPT) builds on the ISSB norms, and attracts on work by the Glasgow Financial Alliance for Net Zero or GFANZ.
“Backing up net zero ambitions with high quality and clear transition plans is crucial if we are to collectively deliver net zero,” Amanda Blanc, Group CEO of insurer Aviva and co-chair of the taskforce, stated in an announcement.
“The TPT Disclosure Framework will help businesses understand just what makes a climate transition plan robust and credible.”
The Financial Conduct Authority, which polices firm listings, stated corporations ought to interact early and get began.
Joanna Penn, a junior treasury minister in Britain’s higher home of parliament and co-chair of the taskforce, stated making transition plans necessary is a part of Britain’s dedication to turning into the world’s first net-zero aligned monetary centre.
“The transparency and accountability offered by transition plans is vital to the fundamental shift in business and finance that is required for the economy-wide transition to net zero and a climate resilient future,” Penn stated.
Companies might be anticipated to make use of the framework to reveal their transition plans for 2025 and onwards, that means the primary reporting could be in 2026.
“For the first time there is a definitive guide and insight into the risks and opportunities that surround the development and implementation of a climate transition plan,” stated Michael Izza, chief government of the ICAEW, an expert accounting physique.
(Reporting by Huw Jones; Editing by Kirsten Donovan)
