Extension of the UK Transition Plan Taskforce's mandate

TPT Mandate extension 

On 24 January 2024 the Transition Plan Taskforce (TPT) announced that HM Treasury had extended its mandate until at least 31 July 2024, with a possible further extension of 3 months to end of October 2024.

What is The Transition Plan Taskforce?

The TPT is a UK-led initiative that aims to provide a global standard for disclosing and assessing transition plans towards a low emission economy. A climate transition plan is a strategic document that sets out how an organisation intends to align its business model, activities and investments towards a lower carbon economy, including actions such as reducing its greenhouse gas emissions, and setting out related targets, actions and resources for doing so.

The TPT was launched in April 2022 with a two-year mandate to deliver the following tasks.

• Develop and publish a TPT Disclosure Framework that sets out the core elements and principles of a credible transition plan, as well as guidance on how to implement and report on it.
• Develop and publish sector-specific guidance for key sectors that face significant transition challenges and opportunities, such as electric utilities, oil and gas, metals and mining, food and beverage, asset owners, asset managers and banks.
• Engage with stakeholders across the public and private sectors, as well as civil society and academia, to gather feedback, build consensus and promote uptake of the TPT Disclosure Framework and sector guidance.
• Support international alignment and convergence on transition plan disclosure and assessment, by collaborating with relevant multilateral initiatives and bodies, such as the Financial Stability Board, the International Organization of Securities Commissions, the Network for Greening the Financial System, the G7, the G20, the UN Framework Convention on Climate Change and the Coalition of Finance Ministers for Climate Action.

Why extend the mandate of the TPT? 

The extension was granted in response to the launch of the Transition Finance Market Review (TFMR) on 22 January 2024. The TFMR is a new UK initiative that aims to explore how to scale up and enhance the integrity of transition finance, which is the provision of financial products and services that support organisations in their transition to net zero and to facilitate investors to align with credible net zero pathways. The extension of the TPT's mandate will allow the TPT to fully contribute to the work of the TFMR, drawing on its expertise and networks on transition plans and transition finance, and to ensure alignment and synergies between the two processes. 

Expected output in 2024

By the end of its extended mandate, the TPT expects to deliver its final outputs that include the following. 

• Final Deep Dive Sector Guidance for seven sectors (currently in draft form for consultation), including for Asset Managers, Asset Owners and Banks, providing detailed and practical recommendations on how to develop and disclose transition plans that are consistent with the TPT Disclosure Framework and the sector-specific transition pathways.
• Notes on cross-cutting topics that are relevant for transition plans, such as adaptation, nature, just transition, emerging markets and developing economies and small and medium-sized enterprises.
• A Forward Pathway on transition plans, with considerations for the maintenance of a strong ecosystem around transition plans, including the roles and responsibilities of different actors, the potential for assurance and verification, the need for data and metrics, and the opportunities for innovation and collaboration.

The TPT's outputs are designed to support financial institutions and corporates globally to disclose against the International Financial Reporting Standards’ (IFRS) International Sustainability Standards Board (ISSB) requirements on transition plans, which were issued in 2023, specifically S2. The TPT's outputs are also included in the IFRS Knowledge Hub, a platform that provides resources and guidance on sustainability reporting. 

The TPT will continue to engage internationally to support the development of globally-consistent approaches on transition plans and transition finance, and to support market actors with the guidance and tools they need to deliver high quality transition plans. 

Consequences for asset managers 

Asset managers considering reporting in line with the ISSB/IFRS S2 will benefit from the continued work from the TPT on the asset manager specific Deep Dive Sector Guidance, given that IFRS S2 requires disclosures that relate to transition planning. This will also benefit those who are considering preparing transition plans independently of ISSB reporting. 

The work of the TPT on the Transition Finance Market Review will, among other things:

• assess the current financial products used to support decarbonisation;
• review methods to ensure long term capital is unlocked and scale transition focused capital with integrity; and
• maximise the opportunity for UK based financial services to develop, structure and export high integrity transition finance services, potentially providing investment opportunities and new financial instruments for asset managers to structure products around.