GFANZ Issues Guidance for Firms’ Transition Plans

The Glasgow Financial Alliance for Net Zero (GFANZ) has released a report advising companies on the information they should disclose in their transition plans. The report aims to elaborate on existing guidance to “bring clarity” and help companies develop credible transition plans. In addition, it looks to provide “much-needed consistency” on metrics and data points required by global financial institutions to evaluate the progress and credibility of companies’ net-zero transition plans. It is currently estimated that just 30% of companies disclosing climate-related data to CDP are developing a low-carbon transition plan and only 1% of these companies are currently reporting all key indicators associated with a credible transition plan. The report aims to increase the “number and credibility” of transition plans and enable financial institutions to support their development and implementation. Mary Schapiro, GFANZ’s Vice Chair, said: “Ensuring companies know what financial institutions deem credible underpins the essential work driving emissions reductions. GFANZ is providing the blueprint for the real-economy to transform net-zero commitments into a business-aligned decarbonization strategy.” 

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