{"id":12173,"date":"2023-03-30T11:09:09","date_gmt":"2023-03-30T11:09:09","guid":{"rendered":"https:\/\/www.esgtoday.com\/?p=12173"},"modified":"2023-03-30T11:10:59","modified_gmt":"2023-03-30T11:10:59","slug":"uk-to-consult-on-requirement-for-companies-to-disclose-climate-transition-plans","status":"publish","type":"post","link":"https:\/\/www.esgtoday.com\/uk-to-consult-on-requirement-for-companies-to-disclose-climate-transition-plans\/","title":{"rendered":"UK to \u201cConsult\u201d on Requirement for Companies to Disclose Climate Transition Plans"},"content":{"rendered":"<!--themify_builder_content-->\n<div id=\"themify_builder_content-12173\" data-postid=\"12173\" class=\"themify_builder_content themify_builder_content-12173 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n\n\n<p>The UK Government announced today a commitment to consult on the introduction of requirements for the country\u2019s largest companies to disclose their climate transition plans, likely on a \u201ccomply or explain\u201d basis.<\/p>\n\n\n\n<p>The commitment was announced today with the introduction of an updated Green Finance Strategy by Chancellor of the Exchequer Jeremy Hunt, part of the government\u2019s launch today of its \u201cPowering Up Britain\u201d plan outlining initiatives to achieve the UK\u2019s energy security and net zero objectives. The original Green Finance Strategy was launched in 2019, aimed at establishing the UK as a center for international green finance, and aligning the financial sector and capital flows with the delivery of global and domestic climate and environmental objectives.<\/p>\n\n\n\n<p>Hunt said:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>\u201cBy unlocking billions of pounds of private capital through our Green Finance Strategy, we generate more of the energy we need in Britain and create new industries and jobs that are built to last.\u201d<\/p>\n<\/blockquote>\n\n\n\n<p>The UK initially committed to introduce mandatory disclosure of transition plans from financial institutions and listed companies <a href=\"https:\/\/www.esgtoday.com\/uk-to-institute-mandatory-disclosure-of-net-zero-transition-plans\/\">during the COP26 conference in 2021<\/a>, and formed a Transition Plan Taskforce (TPT), composed of industry and academic leaders, regulators, and civil society groups, to develop a \u201cgold standard\u201d for transition plans, in order to guard against greenwashing, co-chaired by HM Treasury and insurance company Aviva.<\/p>\n\n\n\n<p>The <a href=\"https:\/\/www.esgtoday.com\/uk-unveils-disclosure-framework-for-net-zero-transition-plans\/\">TPT launched its framework<\/a> in November 2022, and is expected to publish it and its implementation guidance for transition plans in the summer of 2023. Following the anticipated publication, the government committed to consult on the introduction of requirements for climate transition plan disclosure in late 2023.<\/p>\n\n\n\n<p>The updated Green Finance Strategy also included an update on the UK\u2019s plans to introduce a Green Taxonomy. The initiative to develop a&nbsp;<a href=\"https:\/\/www.esgtoday.com\/uk-becomes-first-country-in-the-world-to-make-tcfd-aligned-disclosure-mandatory\/\">green taxonomy was launched in 2020<\/a>&nbsp;by then-Chancellor Rishi Sunak, in order to provide a common framework for determining which activities can be defined as environmentally sustainable, and to improve understanding of the impact of firms\u2019 activities and investments on the environment while supporting the transition to a sustainable economy.&nbsp;<\/p>\n\n\n\n<p>The regulation was initially planned to be passed into law in late 2022, but had been delayed until at least later this year. The updated strategy indicated that the government now plans to consult on the Taxonomy in Autumn 2023, and once finalized expects companies to report against it on a voluntary basis for at least two years, after which mandatory requirements will be explored.<\/p>\n\n\n\n<p>Other aspects of the strategy revealed today include the launch of a consultation into regulating ESG ratings providers, a pledge to assess the upcoming ISSB sustainability reporting standards as soon as they are <a href=\"https:\/\/www.esgtoday.com\/ifrs-sustainability-and-climate-reporting-standards-to-take-effect-in-2024\/\">published later this year<\/a>, and plans to explore the costs and benefits of Scope 3 greenhouse gas emissions reporting.<\/p>\n\n\n\n<p>While welcoming some aspects of the updated strategy, sustainability-focused investment groups criticized it for not going further or faster to scale climate-related transparency for investors. In a statement following the release of the strategy, Lewis Johnson, Director of Policy for NGO ShareAction said that the announcement \u201camounts to little more than a restatement of existing commitments.\u201d<\/p>\n\n\n\n<p>Johnson added:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote\">\n<p>\u201cThe strategy is right to say that reliable, transparent information is vital to align the financial sector with the UK\u2019s climate commitments. However, the headline announcement on transparency is merely a commitment to \u2018consult on the introduction of requirements for the UK\u2019s biggest companies to publish their transition plans if they have them. What\u2019s more, the consultation will assume such requirements may reflect the existing \u2018comply or explain\u2019 basis used by the FCA. This is not enough \u2013 we need robust, mandatory net-zero transition plans now so market participants can accurately assess performance and risk.\u201d<\/p>\n<\/blockquote><span class=\"et_bloom_bottom_trigger\"><\/span>","protected":false},"excerpt":{"rendered":"<p>The UK Government announced today a commitment to consult on the introduction of requirements for the country\u2019s largest companies to disclose their climate transition plans, likely on a \u201ccomply or explain\u201d basis. The commitment was announced today with the introduction of an updated Green Finance Strategy by Chancellor of the Exchequer Jeremy Hunt, part of [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":12174,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[37,31,30],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>UK to \u201cConsult\u201d on Requirement for Companies to Disclose Climate Transition Plans - ESG Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.esgtoday.com\/uk-to-consult-on-requirement-for-companies-to-disclose-climate-transition-plans\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"UK to \u201cConsult\u201d on Requirement for Companies to Disclose Climate Transition Plans - ESG Today\" \/>\n<meta property=\"og:description\" content=\"The UK Government announced today a commitment to consult on the introduction of requirements for the country\u2019s largest companies to disclose their climate transition plans, likely on a \u201ccomply or explain\u201d basis. 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