UK TPT rolls out final guidance on climate plan disclosures

The UK TPT has issued its final versions of sector-specific guidance for its climate transition plan disclosures. These recommendations, published on 9 April 2024, are designed to help companies align with climate goals and work towards a lower-carbon economy. The additional guidance complements the TPT Framework, which gives practical advice for creating clear and consistent transition plan disclosures.


Seven priority sector deep dive guides


Tailored guidance and context for how a company within that sector should approach a climate transition plan has been released for asset owners, asset managers, banks, electric utilities & power generation, food & beverage, metals & mining and oil & gas.  


These sectors were chosen for their risk to climate disruption and ability to drive green solutions. For instance, the food & beverage industry is especially vulnerable to climate change because rising temperatures and severe weather can ruin crops, erode soil, and reduce productivity due to heat. The electric utilities & power generation sector, especially those companies using coal, also face major challenges. They need to deal with the costs of carbon emissions and decreasing demand for coal, as well as issues such as water shortages that affect their operations. These factors should be considered by companies as they work on becoming more resilient to climate change. 


Additional summary guidance has been released for 30 other sectors, including consumer goods, healthcare, infrastructure, renewables, technology & communications and transportation. This summary includes sector-specific recognised areas for emission reduction, metrics and targets, and key sources of guidance for a transition plan in that sector.  


For example, an apparel company could use less fabric in its products, such as using fewer grammes of cotton per t-shirt, make clothes that last longer or swap out materials for those that create less greenhouse gas, such as replacing new polyester with recycled polyester from bottles or old textiles. 


Meanwhile, a technology & communications company could reduce energy use throughout its operations, including in data centres, and its hardware. It might also consider placing its data centres in locations that have access to cleaner energy sources to help with its emission reduction efforts. 


Additionally, the TPT has provided a Transition Planning Cycle guidance for companies on how to start or continue their transition planning journeys, along with references to useful resources and case studies. The four-step cycle involves the following: 


  1. Reassess: Begin your transition plan by evaluating your current position. Engage your board and key stakeholders to identify the critical stakeholders needed to understand your company’s climate-related risks and opportunities. Assess your current emissions footprint, explore strategies to reduce these emissions and consider the potential business impacts of these changes.
  2. Setting your strategic ambition: In this stage, outline your main goals for reducing carbon emissions while tackling climate-related risks and opportunities for your company. Make sure your plan can adapt over time and consider factors such as changes in regulation, new technologies, customer preferences, and physical impacts of climate change. It’s important to think about how these goals will change the way your business operates and what major adjustments are needed to achieve them.
  3. Plan your actions: Turn your big goals into practical steps. This could include planning out clear implementation steps, engaging relevant stakeholders, updating policies and procedures, reviewing governance structures, and setting up metrics and targets to measure progress. Break down these actions into short-term, medium-term, and long-term plans to make sure your goals are met effectively.
  4. Re-implement your plan: With your action plan in place, proceed to implement or continue with it. Disclose your transition efforts in accordance with the TPT Framework, monitor progress, and periodically review and learn from the process to enhance future strategies.

Next steps 


The TPT’s guidance highlights that transition plans should improve decision making within companies and provide transparency to investors and capital markets. The UK Government has signalled that it may make transition plans mandatory, suggesting future regulation in this area. Companies should ensure their transition plans align with the TPT’s guidance to facilitate a successful transition to a lower-carbon economy. 


Whether you are a first-time reporter or have been producing a sustainability report for years, new ESG frameworks and regulations are changing the way companies need to think about and report on sustainability. If you need help thinking about how you can prepare, please get in touch with