Our view on climate transition plans

Navigating towards a future-proof climate transition plan

Identifying an organization’s risks, goals and actions related to its transition towards a lower carbon economy is typically captured in one key strategic element: a climate transition plan. While both awareness of the issue and regulatory and stakeholder expectations are still evolving, this working paper represents our views on the key building blocks of a climate transition plan.

Climate transition plan

The science on the need to mitigate the impacts of climate change is clear. We need to halve carbon emissions by 2030 and reach a net-zero economy by 2050 at the latest — and companies have a fundamental role to play.

A climate transition plan is an action plan that clearly outlines how a company will transform existing assets, operations, and business models to transition towards achieving net zero by 2050. Climate transition plans put climate change at the centre of a company’s strategy and operations.

However, it is no simple task to develop and execute a credible transition plan. We discuss the key drivers and challenges related to developing and executing transition plans and provide our view on key elements of a climate transition plan that is impactful, pragmatic, and action-oriented, delivers value and protects against risks.

Our view on climate transition plans

For more information please contact us: Priti Hoffmann, Vanessa Otto-Mentz, Ivan Kukhnin and Wim Bartels.

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