Only five per cent of FTSE 100 have published net-zero plans that would be deemed ‘credible’ under Government’s Transition plan guidance.

While over 80 per cent of UK listed firms say they are committed to becoming net-zero by 2050, the majority (95 per cent) have not yet publicly disclosed detailed, actionable transition plans.

EY analysed net-zero transition plan material published publicly by FTSE 100 businesses, as of 31 January 2023, and assessed them against the Transition Plan Taskforce’s (TPT) Draft Disclosure Framework. The Framework, which is set to be finalised this year following industry consultation, outlines guidance for companies to create decarbonisation plans that can be deemed “credible, useful, and consistent”.

According to the research, just five per cent of FTSE 100 businesses have disclosed plans that EY would consider to be sufficiently detailed to meet the TPT Framework guidance and have started to put these plans into action. However, even companies within this group have more work to do before their published plans can be considered fully TPT-aligned, due to gaps across a range of areas such as financial planning or the definition of financial metrics and targets.

Commenting on the findings, Rob Doepel, EY UK&I managing partner for sustainability, said: “While the Government has previously said that listed companies will be expected to publish their transition plans this year, a final date hasn’t been disclosed. By setting a deadline, the Government would give much-needed certainty to the UK’s largest businesses and would send a clear message that inaction is not an option.”

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