Develop a Climate Transition Action Plan
A Climate Transition Action Plan outlines near-term actions a company is taking to align internal strategies and external climate and energy policy advocacy to reduce greenhouse gas emissions in line with a 1.5°C pathway and achieve a just transition. The plan enhances stakeholder confidence in the company’s progress towards its climate goals.
In addition to setting long-term commitments to science-based targets that reduce emissions in line with limiting global temperature rise to 1.5°C, companies must create and implement near-term action plans to put them on a credible path to achieving long-term goals. These plans — commonly referred to as Climate Transition Action Plans (CTAPs) — can help companies clarify their transition from goal setting and disclosure to real-economy action that is thoroughly planned and critically sufficient to achieve their stated climate goals line with a 1.5°C pathway. CTAPs have emerged as a framework to equip corporate planning and share key details of those plans with companies’ stakeholders: investors, NGOs, governments, and the public, among others.
A comprehensive CTAP consists of forward-looking disclosure around four core components:
- Emissions Reduction Strategy: Outlining current and near-term actions that your company is taking to make progress towards science-based greenhouse gas emissions reduction targets.
- Governance and Business Strategy Integration: Integrating climate action into your company’s core business model and rigorously planning for success in a low-carbon economy.
- Public Policy: Advocating for robust public policies, regulations, and investment that are necessary to support corporate action and drive economy-wide decarbonization.
- Just Transition: Maximizing social and economic opportunities of climate action while avoiding the creation or exacerbation of systemic inequalities.