A group of investors managing more than $150 trillion in combined assets has recommended that the Australian government develop a “clear” transition plan framework for companies, based on UK and EU progress in this area.
The statement, which was jointly issued by the CDP, Investor Group on Climate Change (IGCC), and Principles for Responsible Investment (PRI), recommended that the Australian government establishes a framework for “developing and disclosing transition plans which supports a whole of economy just transition aligned with limiting global temperatures to 1.5°C”.
The investor groups said the framework should “build on” the International Sustainability Standards Board (ISSB) transition plan disclosure guidance as well as international examples of transition plan framework, especially from the UK and EU. This would “promote efficiency and reduce fragmentation in reporting approaches,” they argued.
Focus on developing transition plan frameworks has grown significantly, especially in Europe. The UK government-mandated Transition Plan Taskforce (TPT) is planning to publish its final transition plan framework in October. Meanwhile, the EU is progressing with a raft of rules focused on improving transition plan disclosure – including the European Sustainability Reporting Standards (ESRS) and Corporate Sustainability Reporting Directive (CSRD).