WHAT MAKES A GOOD NET ZERO TRANSITION PLAN?

Phil Richards at Sustainable Energy

First explains how companies can get prepared for future net zero reporting requirements.

Many companies have set net zero targets, but far fewer have set out a robust plan for getting there. The UK government wants to change this – and has pledged to make net zero transition plans mandatory for large companies, as soon as this year.

Three guiding principles

The UK’s Transition Plan Taskforce (TPT) has outlined three principles for companies to follow:

Ambition – A strong transition plan should contribute to and prepare for a rapid and orderly economy-wide net zero transition. The UK government committed to reaching net zero greenhouse gas emissions by 2050, and many countries are quickly following suit –or are already well on their way.

Actionable – A good transition plan will explain the specific, actionable measures your business intends to implement on its net zero journey. This means setting out exactly what you plan to do and when, as well as what quantity of emissions will be cut through the changes.

Accountable – According to the new TPT guidelines, an accountable plan means enabling “delivery of the plan through clear governance mechanisms along with consistent, comparable and decision-useful reporting and verification.”

Who makes the decisions about your net zero transition plan? Who has responsibility for ensuring that the measures listed are carried out on time? What is the role of senior management? Your transition plan should explain the decision-making and approval process for net zero measures within your organisation. It should also explain who is overseeing the plan and its implementation.

Better to start late than not at all

Real transparency also means being honest about the limitations of your plan. That might mean looking at constraints and uncertainties in the transition, such as challenges regarding emissions reductions of hard-to-decarbonise sectors. It is unlikely that your initial transition plan will have all the answers about getting to net zero. Being upfront about this makes your plan more credible.

For more net zero transition planning advice, contact partnerships@sefirst.com or scan the QR code