TPT publish UK gold standard Disclosure Framework 

October 11th, 2023

The UK’s Transition Plan Taskforce (TPT) has released its gold standard disclosure framework for financial institutions, which will support best practice transition plans.

The framework outlines the five key elements of a good practice transition plan: foundations, implementation strategy, engagement strategy, metrics and targets, and governance.

Foundations involve institutions disclosing the strategic ambition of its transition plan, including its objectives and priorities.

An implementation strategy should outline short-, medium- and long-term actions and take into account business operations, while the engagement strategy should outline any engagement activities it is undertaking to achieve the strategic ambition set out in the foundations.

Under the framework, institutions should also disclose the metrics and targets it uses to monitor progress towards its transition plan and how it is it within governance structures.

The framework has been designed to be consistent with international standards, including the climate-related disclosures standard issued by the International Sustainability Standards Board (ISSB).

TPT was launched was launched by the UK Treasury in 2022 to fulfil the government’s intention to become the world’s first net zero-aligned financial centre announced at COP26.

The Financial Conduct Authority (FCA), which worked with the TPT, said it is committed to drawing on the framework as it develops its disclosure expectations for listed companies, asset managers and FCA-regulated asset owners.

Sacha Sadan, director of ESG, FCA, said: “[The framework] will help companies communicate high-quality, consistent and comprehensive information on their transition plans to investors, giving them the confidence to finance the transition.

“We encourage listed companies and regulated firms to engage early with the framework, and get started.”