Disclosure Framework Update
Yesterday the Transition Plan Taskforce (TPT) launched their Disclosure Framework, alongside several pieces of additional implementation guidance - including technical mapping between TPT, and both the International Financial Reporting Standards (IFRS) 2 standard and the European Sustainability Reporting Standards (ESRS).
Sector specific deep dives will be out for consultation 13th November and are due to be published February 2024.
The TPT Disclosure Framework is aligned with the Glasgow Financial Alliance for Net Zero (GFANZ) and the International Sustainability Standards Board’s IFRS Sustainability Disclosure Standards 1 and 2.
While the TPT disclosure framework is currently voluntary, regulatory requirements are expected in the UK in the near future and therefore, the advice for companies from the virtual launch was to start developing a transition plan now, if they have not already started.
The process is designed to be iterative, for plans to be reassessed and for companies to develop and improve upon their transition plans over time. Plans are not expected to be perfect, and companies can learn as they go.
In August 2023 the UK financial Conduct Authority (FCA), as part of its climate-related disclosure rules, opened consultations on transition plan disclosures by listed companies in line with the TPT Framework. This is alongside the consultations already in place to discuss the implementation of the ISSB framework.
Currently these new requirements would be applicable to accounting periods from January 2025 onwards.