Eleven leading civil society organisations have written to ministers in the UK, calling on them to swiftly take forward the government’s manifesto commitment and implement an ambitious requirement for large companies to develop and disclose credible transition plans.
The letter argues that this is not simply a disclosure issue, but a significant economic opportunity and a chance to strengthen the UK’s resilience and energy security. A credible and interoperable UK transition plan regime would help unlock private capital at scale, align investment with national climate and nature priorities, and reinforce the UK’s position as a world-leading hub for green and transition finance. At a time of intensifying global competition, decisive action will be critical to maintaining the UK’s leadership and capturing a share of the rapidly expanding global clean technology market while reducing dependence on fossil fuels.
The UK has a narrow window of opportunity to demonstrate leadership. Unlocking London’s potential as a global sustainable finance hub will require the government to modernise the UK’s regulatory landscape, including by delivering its manifesto commitment on transition plans. This will build market confidence in the credibility of the UK transition finance market and ensure interoperability with international frameworks, reducing barriers to global capital flows. The government must act now to send a strong signal to global investors and corporations that the UK intends to remain at the forefront of sustainable and transition finance.
The letter sets out the strategic and economic case for action, noting that transition planning is already becoming standard practice among major UK companies and is essential for managing both risks and opportunities associated with the transition, such as exposure to volatile fossil fuel prices and supply chains. It also highlights the urgency of keeping pace with international developments, as other major economies move quickly to embed transition planning within their regulatory frameworks.
To deliver on the Manifesto pledge, signatories call on ministers to ensure that the requirement includes the following core elements:
- Develop: All large listed and private companies should be required to develop credible climate transition plans. Best practice should expand to further develop adaptation and nature considerations.
- Disclose: To ensure global interoperability and the availability of relevant information for decision-making, all developed plans should be disclosed in line with the TPT Disclosure Framework. Requirements should come alongside the continuing ISSB rollout in the UK.
- Align (with the temperature goal of the Paris Agreement): Companies must be required to set entity-level targets that align with a credible, science-based pathway.
- Implement: Companies should be required to make best efforts to implement their plan. The government must work with regulators and the market to develop mechanisms to penalise failure to do so.
