Letter to government from UKSIF, PRI, Aldersgate Group, & E3G: The importance of 1.5°C-aligned climate transition plans

In our collaborative industry letter to the Chancellor of the Exchequer, we emphasise the need for policymakers to accelerate and complete the process for UK adoption, in full, of the International Sustainability Standards Board (ISSB) reporting framework under the economy-wide SDRs. This will be critical for creating a globally competitive and sustainable UK economy. It will also importantly, over time, help address the sustainability reporting burden for many companies through a common ‘baseline’ of disclosures.

In our view, an essential component of this package will be requirements for all large financial and non-financial companies to disclose- and subsequently then adopt and implement through best efforts- their climate-related transition plans, specifically in line with the framework set out by the Transition Plan Taskforce (TPT).

In our letter, we therefore offer support to government in setting out and implementing its Manifesto commitment for robust, practical 1.5°C-aligned transition plans, disclosed explicitly in accordance with the TPT’s Disclosure Framework and in a way that reflects private sector needs and opportunities. As part of this, we advise careful consultation with industry stakeholders on the detail of this measure to ensure that 1.5°C-aligned plans are both sufficiently ambitious, workable, and clearly defined for companies. We note the value in specific reference to 1.5°C in line with the objectives of the Paris Agreement, and this approach should help clarify the list of dependencies for companies in achieving progress against their plans, including crucially the direction of wider economy policy from government.

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