The UK’s Transition Plan Taskforce (TPT) has launched working groups on nature, adaptation and Just Transition. It is also starting work on debt and credit, and the application and utility of transition plans in emerging markets and developing countries. 

First announced at COP26, the TPT was launched by the Treasury in April 2022 and tasked with developing a gold standard for transition plans from UK financial institutions and corporates.  

The taskforce is led by a steering group of private and public sector leaders, co-chaired by Aviva CEO Amanda Blanc and HM Treasury lords minister Baroness Penn. It is supported by a delivery group of senior experts from across industry, academia and civil society. The secretariat for the TPT is provided by the UK Centre for Greening Finance and Investment (CGFI) and E3G. 

RI previously revealed that members of the TPT were exploring how nature and a Just Transition could be incorporated into its work.    

This was confirmed with the release of TPT’s disclosure framework for companies and financial institutions in November, which recommended that transition plans should cover measures to address material risks to – and leverage opportunities for – the natural environment and stakeholders that arise as part of their plans. 

TPT’s consultation on the framework closes today. Later this year, it is set to consult on sector guidance, including an overview of sector-specific metrics from existing guidance. 

According to the TPT, this week’s announcement was in response to increased demand for guidance on transition plans and wider sustainability issues.

“The first phase of the TPT in 2022 considered the interdependencies between climate transition plans and other sustainability topics,” the taskforce said. “The TPT will explore wider areas through new working groups on nature, adaptation and Just Transition.”

The initiative is also starting work on debt and credit, the application and utility of transition plans in emerging markets and developing countries, and supporting small and medium-sized enterprises in the transition plan journey. 

Also this week, TPT announced new members and observers to its delivery group, including SSE, Railpen, DEFRA, DWP and the Financial Reporting Council (FRC). In addition, the group launched a call for proposals to expand the Transition Plan Sandbox, which tests its disclosure framework and implementation guidance.

GFANZ undertaking nature stock-take

In other nature news, the Glasgow Financial Alliance for Net Zero (GFANZ) is starting an exercise to “stock take nature as part of transition plans and the role of protecting nature in mitigating climate change”, Tony Rooke, executive director for real economy transition planning and sectoral pathways at GFANZ, and a member of the TPT Delivery Group, told Responsible Investor.

This follows the publication by GFANZ last year of a framework for financial institutions to develop credible net-zero strategies. 

For the initiative, GFANZ will engage with NGOs, governments, businesses and financial institutions, as well as continuing its work with the TPT, ISSB, TCFD and TNFD, Rooke told RI. 

At COP15, GFANZ’s co-chair, Mark Carney, urged private finance to ensure net-zero transition plans include clear priorities on deforestation, protecting nature and restoring biodiversity. 

This year will also see GFANZ helping financial institutions and businesses implement its framework, as well as “looking to understand where this may need to be subsequently refined – mirroring how the TCFD provided further guidance – or work alongside other topics including nature and a Just Transition”, Rooke said.