Today, the FCA welcomes the publication of the Transition Plan Taskforce (TPT) Disclosure Framework.
As we transition to a low emissions economy, financial markets will increasingly want better information on how companies plan to adapt their business models, their operations and their products and services.
Climate transition plan disclosures deliver this information. The TPT Disclosure Framework provides a set of good practice recommendations to help companies across the economy make high quality, consistent and comparable transition plan disclosures.
The TPT Framework recommends disclosure of a company’s strategic climate ambition, and how this is reflected in its implementation and engagement approaches, its governance and accountability arrangements, and its financial plans. With better forward-looking information, investors will be better equipped to assess companies’ future prospects.
We have worked to ensure that the TPT’s recommendations fit with other relevant international initiatives and within the developing global landscape of sustainability-related disclosure standards.
The TPT Framework has been designed to align with the transition planning guidance developed by the Glasgow Financial Alliance for Net Zero, and to be consistent with, and build on, the reporting standards developed by the International Sustainability Standards Board (ISSB).
We are committed to drawing on the TPT Framework as we further develop our disclosure expectations for listed companies, asset managers and FCA-regulated asset owners. In Primary Market Bulletin 45, published in August 2023, we set out our intention to consult next year on rules and guidance for listed companies to disclose in line with the UK-endorsed ISSB standards and the TPT Framework as a complementary package.
We are also playing our part by working to become a more sustainable organisation. Our own net zero transition plan, published in July 2023, commits us to net zero greenhouse gas emissions by 2045 and sets out how we plan get there.
Sacha Sadan, Director Environmental, Social and Governance, FCA, said:
'Companies will need to think strategically about how they respond and contribute to the transition to a low emissions, climate-resilient future.
'The Disclosure Framework released today by the Transition Plan Taskforce is an important step in this transformation. It will help companies communicate high-quality, consistent and comprehensive information on their transition plans to investors, giving them the confidence to finance the transition. The FCA has supported this work since its inception and we are committed to consulting next year on new regulatory expectations in this area that draw on the TPT’s outputs.
'In the meantime, we encourage listed companies and regulated firms to engage early with the Framework - and get started.'