The U.K. Transition Plan Taskforce launched a disclosure framework Oct. 9 with best practices for companies and financial institutions to meet climate targets and manage risks.
Based on the principles of ambition, action and accountability, the TPT framework is designed to help organizations set "credible and robust" transition plans as part of their annual reporting, and to inform investors on companies' climate ambitions, risk management and strategies.
It builds on climate disclosure standards from the International Sustainability Standards Board as well as the work of the Glasgow Financial Alliance for Net Zero.
Taskforce members who helped develop the framework include several asset managers, including Legal & General Investment Management and National Employment Savings Trust, London, the £31.5 billion ($38.5 billion) defined contribution multiemployer master trust.
TPT co-Chair Amanda Blanc, group CEO of Aviva Group, said in a statement that such transition plans are crucial for backing up net-zero ambitions.
The framework will inform sustainability disclosure requirements for U.K.-listed companies that are expected next year from the Financial Conduct Authority.
Sacha Sadan, director environmental, social and governance for the Financial Conduct Authority, in a statement called the TPT disclosure framework an important step "that will help companies communicate high-quality, consistent and comprehensive information on their transition plans to investors, giving them the confidence to finance the transition."
