By Zhuan Faraj

On 8 November 2022, the UK Transition Plan Taskforce (“TPT”) published consultations on its proposed disclosure framework and implementation guidance for net zero transition plans.

The FCA ESG sourcebook already requires disclosure on transition plans for asset managers and asset owners with (on a staggered basis) assets over £50bn and £5bn respectively. Additionally, the FCA suggests that asset managers in scope of the ESG sourcebook, which are in a country that has made a commitment to a net zero economy (such as the UK), should assess the extent to which it has considered that commitment in developing and disclosing its transition plan.

The UK Government committed at COP 26 last year to moving towards mandatory transition plan disclosures. Against this backdrop, the TPT was then established by HM Treasury in April 2022 to set the “gold standard” for transition plans, and this consultation contributes to its key aims.

The TPT’s new proposed disclosure framework is based around five key “elements” which mirror the key components of a transition plan recommended by GFANZ (on which see our earlier blog post here).

The consultations are both open until 28 February 2023 and can be read here (Disclosure Framework) and here (Implementation Guidance).