TPT Transition Planning Cycle
Explore our guidance on how to start or continue your transition planning journey, including references to useful resources and case studies.
Overview
The transition to a low-greenhouse gas (GHG) emissions, climate-resilient economy will require fundamental transformations in business and finance. Transition planning, embedded in corporate strategy, is a critical tool to deliver this.
But transition planning is not a ‘once and done’ activity. The scale and complexity of the challenge are unprecedented. The uncertainties in the planning process are as inevitable as they are wide ranging – be they related to policy, technology, or the changing climate itself. Operating in an interdependent system, every entity will need to navigate its interactions, resources and relationships with stakeholders, society, the economy, and the natural environment as it transitions.
Transition planning must be flexible, dynamic, and responsive to new information and external developments. And transition plans will have to be regularly reviewed and updated.
This is an illustrative guide as you start or continue your transition planning journey. Sitting alongside and referencing the TPT Disclosure Framework, it offers helpful steers on matters for consideration at each of four, iterative and stylised, stages of the Transition Planning Cycle.
For each stage, we have suggested several process steps that you may consider as you develop and iterate your transition plan. Under each step, we have included links to relevant external resources, offered internal governance and engagement considerations, and provided examples and case studies drawn from existing practice on transition planning. Readers should note that transition planning is an emerging space in which current practice is rapidly evolving. The TPT will therefore continue to update the guidance and add references and case studies ahead of publishing its final Implementation Guidance in Q1 2024.
While these stages and process steps are presented sequentially, some entities may perform certain activities in a different order. This guidance document is necessarily stylised and is not intended to be prescriptive, comprehensive, or universally applicable.
Acknowledgements
The drafting of The Transition Planning Cycle was led by the Disclosure Framework Workstream of the TPT Delivery Group, with input and review from members of the TPT Sandbox and Delivery Group.
The TPT would like to thank the co-chairs of the Sandbox, Mark Manning (FCA) and Nicolette Bartlett (CDP) as well as all members of the Steering Group, Delivery Group, Sandbox, and Disclosure Framework Workstream. In particular, the TPT would like to thank the following for their support in the drafting of The Transition Planning Cycle: Scott Twigg (CDP), Phil Delaney (FCA), Hannah Summers (WTW) and TPT Secretariat authors Camila Cristancho Duarte, Ira Poensgen, and Max Rose.
