Banks and oil firms among those to get extra guidance on sharing net zero plans

Banking and fossil fuels are among seven sectors which will be given extra guidance on sharing their net zero plans. The Government has committed to introducing new rules requiring large UK businesses to publicly share their net-zero progress. The Transition Plan Taskforce (TPT), a group of experts launched by the Treasury last year, will publish a framework which businesses can use to ensure they share their climate plans in line with emerging standards. The framework builds on the global reporting standards recently published by the International Sustainability Standards Board, aimed at clamping down on corporate greenwashing. UK listed companies must lead the way in developing credible, consistent, robust climate transition plans Amanda Blanc, co-chairwoman of the TPT The TPT, which is made up of a mixture of climate experts, financial leaders, NGOs and public sector leaders, said on Thursday that seven sectors in the UK will also be given ‘deep dive guidance’ to help them use the framework to publicly share their transition plans. These include banking, oil and gas, asset management, asset owners, electric utilities and power generators, food and agriculture, and metals and mining. TPT said the sectors will be given the extra guidance, to be published in early 2024, because of their emissions impact, investment gaps and the quality of existing guidance. It also said more general guidance covering about 40 sectors will also be published early next year. Amanda Blanc, chief executive of Aviva and co-chairwoman of the TPT, said: ‘We believe the UK can and should take action to become the world’s most climate-ready developed economy by 2030. ‘Whilst we are in no doubt that tackling climate change will require significant investment against a challenging economic backdrop, we also know that failing to act will cost much more. There is growing international momentum around private sector transition plans, both from industry and policymakers Baroness Penn, co-chairwoman of the TPT ‘UK listed companies must lead the way in developing credible, consistent, robust climate transition plans.’ Baroness Penn, Treasury Lords Minister and co-chairwoman of the TPT, said: ‘There is growing international momentum around private sector transition plans, both from industry and policymakers. ‘Over the last six months alone, G7 leaders have come out in support of private sector transition plans, various international regulatory networks have started work on transition planning, and a rising number of entities have published their first transition plan.’ The TPT was launched last April after then-chancellor Rishi Sunak pledged at Cop26 that big emitters would face new requirements about sharing their net-zero plans and progress from 2023. The Financial Conduct Authority (FCA) will consult on a new regulation in the coming months that covers listed companies and financial firms and will draw on the existing TPT framework to create the regulation. In addition the Government pledged that it would consult on extending the requirement to large private companies, which is not regulated by the FCA so will require an amendment to the Companies Act, in its Green Finance Strategy published in March. A draft version of the framework, which was published in November last year, proposes that companies publish one transition plan in 2023 and then an update in 2026, with further information included in financial reporting in the interim years. It says transition plans should include high-level ambitions to mitigate emissions as well as a list of actions to be taken in the short, medium and long-term.