John Glenn, Economic Secretary to the Treasury, has launched the UK Transition Plan Taskforce (TPT) to develop a ‘gold standard’ for UK businesses’ climate transition plans.

The TPT will be responsible for developing a new regime that will force UK financial institutions and listed companies to develop and publish ‘rigorous and robust’ transition plans that detail how they will adapt and decarbonise as the UK moves towards a net-zero economy by 2050.

The TPT has a two-year mandate, and the FCA will be actively involved and draw on its findings to strengthen disclosure rules. It will bring together leaders from industry, academia and regulators, and will coordinate with international efforts. The Secretariat is being provided by the UK Centre for Greening Finance and Investment (CGFI) and by E3G.

Joining Glenn on the Taskforce will be ICAEW’s CEO Michael Izza and director of sustainability Richard Spencer, who have both been appointed to help steer and deliver the TPT. Glenn said: “It brings together an impressive range of forward-thinking stakeholders to ensure firms can put together plans to aid our transition to a low-carbon economy.”

Glenn added that the UK was already a world leader in transition, and in addition to becoming the first major economy to commit to net-zero by 2050, it established the world’s first retail Green Savings Bonds, and last year alone raised £16bn in Green Gilts to fund projects such as offshore wind.

Under the rules announced by the Chancellor at COP26, the UK Government is requiring large companies and certain financial sector firms to publish a transition plan from 2023. These new requirements will build on the latest implementing guidance of the Taskforce on Climate-related Financial Disclosures (TCFD).

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