Energy from waste to be included in UK Emissions Trading Scheme: What you need to know
by Pete Watkins
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Today’s environmental reporting landscape can appear to be a melting pot of jargon and acronyms, with the devil in the detail. The recent additions of the European Sustainability Reporting Standards (ESRS) – under the EU Corporate Sustainability Reporting Directive - and the International Sustainability Standards Board’s IFRS S1 and S2 standards – to add to the Taskforce for Climate-related Financial Disclosure (TCFD) and the Taskforce for Nature-related Financial Disclosures (TNFD) – only goes to highlight this congestion in reporting requirements. The fact there are now so many frameworks and individual disclosure elements to consider can detract from clear strategic thinking about what really matters and for busy sustainability managers, it can sometimes be difficult to see the ‘wood for the trees’.
That is to say that it can be easy to lose sight of the true purpose of environmental reporting, the ‘macro’ picture (i.e. reducing emissions and becoming more resilient), and instead we run the risk of fixating on the ‘micro’ details (i.e. perfecting GHG calculations from 95% to 96% accuracy).
The detail is naturally part and parcel of developing a comprehensive report and often is the distinguishing factor in separating the good from the average: details matter, but they should not be the primary driver when building a sustainability strategy. Overly focusing on specifics can narrow the perspective and mean we overlook other more important objectives. A successful sustainability strategy should ideally be guided by a ‘macro’ strategic ambition that is holistic and acts on multiple fronts.
‘Transition planning’ is the latest hot topic to be introduced to sustainable reporting and offers the opportunity to consider the strategic ‘macro’ ambition of an organisation’s sustainability strategy. Indeed, this makes it a valuable tool, allowing businesses to establish an overarching ambition for their climate strategy. It does this by asking an organisation to explain how it is planning to adapt its business to achieve its decarbonisation targets and align itself with a low-carbon economy.
In October 2023, the Transition Plan Taskforce (TPT)[1] released its ‘gold standard’ framework for creating a transition plan, which provided much-needed guidance on what a climate transition plan should contain and a method by which to get there. Fully aligning with the extensive guidance may seem like a daunting task, but getting too caught up with the details might actually be hindering how you commence your transition plan journey. Below, we have provided the initial phases to get you started.
‘Transition planning’ may feel like just another added facet of sustainable reporting to consider and part of an uphill battle to stay on top of the requirements. However, the TPT’s guidance offers an opportunity to consolidate prior progress and have a clear future path making it easier to create a good sustainable strategy. Despite the guidance being highly detailed, the TPT is clear that plans are supposed to be iterative and develop in maturity over time. Start with the basics, ensure you have a solid foundation, and importantly, don’t lose sight of the ‘why’ behind your climate ambitions.
On 9th April 2024, the TPT launched its final set of transition plan resources [2] to help businesses unlock finance for Net-Zero including:
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