Transition plans are an important tool for accountability, transparency, and achieving a global net zero economy. Disclosing a transition plan can provide the relevant information for decision-making and can thus enable transformation for the reporting organisations, investors and lenders, policymakers, regulators, and the capital markets ecosystem as a whole.
Recognising asset owners’ dual role as both preparers and users of transition plans, this discussion paper sets out practical steps for both developing and evaluating transition plans.
Moreover, to capitalise on a great deal of overlap between commonly required disclosures and the existing Alliance member activities, the paper provides guidance for mapping Alliance members’ activities against five robust transition plan frameworks. As such, this paper will serve members in advancing towards the recommendations of the High Secretary-General’s High Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities (HLEG) and specifically on the fourth recommendation—“ Creating a Transition Plan”.