On 9 October 2023, the Transition Plan Taskforce (TPT), the UK body responsible for developing a disclosure framework for private sector climate transition plans, published the final version of its Disclosure Framework and Implementation Guidance which sets out good practice for robust and credible transition plan disclosures.
The TPT Framework, while developed in the UK, is designed to have global application and builds on the work of the Task Force on Climate-related Financial Disclosures (TCFD), the International Sustainability Standards Board (ISSB) and the Glasgow Financial Alliance for Net Zero.
To assist entities making transition planning disclosures under the TCFD Recommendations and the ISSB's IFRS S2, the TPT has developed technical mapping documents which pinpoint the TPT Framework guidance relevant to each provision of the TCFD Recommendations and IFRS S2 which relate to transition planning.
The TPT has also published a comparison of the TPT Framework with relevant provisions of the European Sustainability Reporting Standards (ESRS) under the EU Corporate Sustainability Reporting Directive (CSRD). The proposed EU Corporate Sustainability Due Diligence Directive (CSDDD) (currently expected to be finalised in early 2024) will require large EU companies and non-EU companies with substantial turnover within the EU to adopt a climate transition plan.
The UK's Financial Conduct Authority has indicated that it intends to consult next year on rules and guidance for UK listed companies (which would include Irish incorporated, UK listed companies) to disclose in line with the UK-endorsed ISSB standards and the TPT Framework as a complementary package.
The TPT has also published Sector Guidance which is currently under consultation.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.