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Treasury Taskforce to assess UK firms climate transition plans

Published May 4, 2022

Treasury Taskforce to assess UK firms climate transition plans

The Treasury has formally launched a Transition Plan Taskforce to assess UK firms’ climate transition plans. 

The Taskforce will oversee efforts by UK financial institutions and listed companies to develop transition plans detailing how they will reach net zero in 2050. In particular, the Taskforce will ensure transition plans are disclosed in a consistent way.

The Taskforce will do so by building on existing Taskforce on Climate-related Financial Disclosures (TCFD) guidance which it has integrated into climate-related disclosure rules for listed companies and regulated firms.

The climate transition plans are intended to support the development of sustainability-linked instruments and investor stewardship, as well as financial regulation and corporate strategy. 

The Chancellor, Rishi Sunak, first announced the formation of the Taskforce at COP26. Under rules announced at the time, large companies and certain financial sector firms must publish a transition plan from 2023. The new requirements will build on the latest implementing guidance of the TCFD.

The Taskforce is led by a Steering Group of private and public sector leaders, co-chaired by Economic Secretary to the Treasury John Glen and CEO of Aviva Amanda Blanc. 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 climate change think tank E3G. 

The UK is a world leader in green finance. The UK has established the world’s first retail Green Savings Bonds and raised £16 billion in Green Gilts in 2021 to fund projects such as offshore wind.