Ceres unveils TPT-aligned transition planning guidance

US non-profit Ceres has released new guidance to help companies draft credible climate transition plans, which it says is aligned with the UK’s Transition Plan Taskforce (TPT) framework.

Like the TPT Framework, Ceres’ ‘Blueprint for Implementing a Leading Climate Transition Action Plan’ is based on the three principles of ambition, action and accountability, and is organised around the same five disclosure elements: foundations, implementation strategy, engagement strategy, governance and metrics.

However, the sustainability advocacy organisation adds six action ‘action areas’ to the mix: setting goals and science-based targets, decarbonising the business, ensuring a just transition, advocating for public policy, supporting integration and accountability, and tracking and reporting progress. 

Disclosing a climate transition plan aligned with a 1.5ºC future is now a requirement under the EU’s Corporate Sustainability Reporting Directive (CSRD), which is applicable to more than 50,000 firms inside and outside of the EU.

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“With thousands of companies expected to develop their first transition plan over the next two years, Ceres’ report will be a critical resource for them as they work to develop leading plans and meet their business goals,” said Laura Draucker, senior director of corporate climate action, Ceres. 

“Companies that go beyond meeting the baseline regulatory requirements of disclosure and integrate climate-related risks and opportunities into their core business strategies via transition planning can position themselves for compliance and long-term success."  

Best practices in transition planning: Mars, Ball Corporation, General Mills

The guidance also offers 45 case studies analysing the climate transition plans of large companies, and identifies best practices from several of them, including Ball Corporation, General Mills, Mars Inc, and National Grid.

Ball Corporation’s climate transition plan, for example, details the company’s science-based GHG reduction targets and how it plans to achieve them under three transition scenarios – from most to least optimistic. 

This type of scenario analysis remains rare in corporate disclosures – yet it is highly recommended by climate adaptation experts. Andy Garraway, Climate Policy Lead at Risilience, recently told CSO Futures: “The world isn't static, there are multiple futures ahead of us. And so you need to assess your transition plan in a way that not only quantifies your risk before and after applying that 1.5ºC-aligned transition plan, but you should also be looking at physical risk under pathways of 4ºC+, to make sure that your business strategy and your company is well adapted to cope with both extremes, from a policy, legislative and reputation angle, but also from a pure climate, physical impact angle.”

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Mars’ Net Zero Roadmap also breaks down the GHG reduction potential of each of its planned actions around agriculture and land use, processing, logistics, packaging and retail. 

All three companies also highlight their advocacy efforts to influence climate action beyond their own boundaries – but none provide any details on how the transition plan is being integrated into financial planning, yet this is a crucial aspect of building trust with investors.