Corporate transition planning is the missing link between setting and achieving net zero, nature-positive, and just transition commitments through their integration into business operations. While some companies have started drafting and disclosing transition plans, their credibility, and integrity need to be urgently improved. Many other companies haven’t started the process at all.
Organizations that are just starting out will benefit from examples and recommendations around engaging with stakeholders to develop a plan, as well as tackling data quality, availability, and management challenges. For organizations that have begun to evolve their business model, this primer offers examples and recommendations on framing how the business is changing and how to effectively disclose the critical climate transition plan elements.
The primer focuses on four priority areas for implementation that are relevant to both groups. In order to establish this primer’s priority areas, we surveyed a subset of WBCSD Corporate Performance & Accountability (CP&A) members who have joined a transition planning workstream. The four areas companies found most challenging are:
- Understanding and prioritizing climate-related risks and opportunities to enable strategy development.
- Initiating industry and value chain engagement and collaboration to mitigate risk hot spots.
- Accelerating innovation to develop low-carbon products and services.
- Transition plan resourcing and integration into financial planning.