CORPORATE ACTION → TRANSITION PLANS
Transition Plans
Mapping the pathway from targets to delivery – credible, funded, and implementable.
Corporate Sustainability Journey
In 30 Seconds
A transition plan is a time-bound action plan that outlines how an organisation will pivot its existing assets, operations, and business model towards a trajectory aligned with climate science and sustainability goals.
The challenge: Many “transition plans” are aspirational documents disconnected from capital allocation, operational reality, and board accountability. They describe a destination without mapping the route.
The opportunity: A credible transition plan builds investor confidence, unlocks sustainable finance, and creates operational clarity. It's not just compliance – it's strategic advantage.
How to Get Started
Transition planning is a management process. The first version does not need to be perfect. It needs to be real, owned, and actionable.
Define Scope
Baseline, boundaries, and material risks
Set Targets
Science-based goals and interim milestones
Map Delivery
Actions, levers, and capital allocation
Assign Owners
Governance, incentives, accountability
Publish & Iterate
Disclose, track, and improve annually
Where Transition Plans Fit in the Journey
Transition plans connect measurement, targets, and delivery. Understanding how CDP, SBTi/SBTN, and transition planning relate to each other prevents confusion.
Measure & Disclose
CDP / TCFD / ISSB
Baseline your emissions and nature impacts. Report annually through CDP questionnaires or sustainability reports.
Set Validated Targets
SBTi / SBTN
Commit to science-based targets validated by SBTi (climate) and SBTN (nature). Define where you need to be.
Build Transition Plan
TPT / ISSB
Map the route from baseline to targets. Specific actions, capital allocation, governance, timelines.
Deliver & Track
Implementation
Execute the plan, track progress quarterly, update CDP disclosures annually. Iterate and improve.
The Feedback Loop
This is not linear. As you deliver and track progress, you return to Step 1 with new data:
- • CDP disclosure shows progress (or lack of it) against targets
- • Targets may need updating based on new science or business changes
- • Transition plan gets refined annually based on what works and what doesn't
- • Investors and stakeholders evaluate credibility based on disclosure quality
Without Targets
A transition plan without validated targets (SBTi/SBTN) lacks a credible destination. You're mapping a route to nowhere.
Without a Plan
Targets without a transition plan are aspirations, not commitments. Investors want to see how you'll deliver, not just what you're aiming for.
Without Disclosure
A plan that isn't disclosed (CDP, annual reports) can't build investor confidence or unlock sustainable finance. Transparency is the credibility signal.
What Makes a Transition Plan Credible?
Investors, regulators, and stakeholders are increasingly sophisticated at distinguishing credible plans from greenwash. These are the hallmarks of a plan that will be taken seriously.
Science-Aligned Targets
Grounded in validated targets (SBTi) with clear 1.5°C pathway alignment
Capital Allocation
CapEx and OpEx aligned with transition. Money follows the plan.
Governance & Accountability
Board oversight, executive incentives, clear ownership of delivery
Interim Milestones
Not just 2050 targets. 2025, 2030, 2035 waypoints with specific actions
Implementation Detail
Specific initiatives, technologies, suppliers, timelines. Not vague intentions.
Just Transition
Social equity addressed. Workforce retraining and community impact managed.
Scenario Resilience
Stress-tested against climate scenarios (e.g. 1.5°C vs 2.4°C) and tech delays.
Policy Alignment
Corporate lobbying and trade association activities match transition goals.
The test: Could an informed outsider read your transition plan and understand exactly what you're going to do, when, and how you'll pay for it?
The Social Core: Just Transition
Transition plans are often seen as purely technical or environmental. However, the social dimension(Just Transition) is a core requirement of the TPT and CSRD frameworks. A holistic plan must consider the impacts on the people who power the business.
Workforce Evolution
Mapping roles at risk in high-carbon business units and providing proactive upskilling/reskillingpathways. Credible plans signal to employees that the transition is an opportunity for growth, not just a risk to jobs.
Supply Chain Equity
Moving from “policing” suppliers to enabling them. For many SMEs, the transition plan is an existential challenge; holistic corporates provide the tools, data partnerships, and technical support to help their value chain evolve together.
Climate + Nature Integration
Climate transition planning is necessary, but not sufficient. Nature loss has multiple drivers beyond climate, and climate actions can create new nature risks. Credible plans treat climate and nature as an integrated system.
Why It Matters
- • Ecosystems absorb roughly half of global CO2 emissions
- • Nature impacts are location-dependent and non-substitutable
- • Climate-only plans can unintentionally damage nature
What It Requires
- • Dependencies and impacts assessed across the value chain
- • Nature objectives aligned with GBF and national plans
- • Integrated timelines (TNFD and TPT targets on a single path)
The TPT Framework
The UK Transition Plan Taskforce (TPT) developed the most comprehensive framework for corporate transition plans (2022-2024). In June 2024, the IFRS Foundation adopted TPT's disclosure-specific materials and now supports their implementation globally through ISSB standards, especially IFRS S2. TPT concluded in October 2024, with its legacy now owned and maintained by IFRS.
Confused by TPT, ISSB, and the regulatory landscape?
Read our deep dive explaining how the frameworks connect and why multiple organizations exist →
TPT Disclosure Framework
The TPT framework organises transition plan disclosure into five elements, each with specific sub-elements and recommended disclosures.
Foundations
- Objectives & priorities
- Business model
- Value chain
Implementation Strategy
- Business operations
- Products & services
- Policies & conditions
Engagement Strategy
- Value chain & SMEs
- Industry & Capacity Building
- Government & Lobbying
Metrics & Targets
- GHG metrics
- Other metrics
- Carbon credits
Governance
- Board oversight
- Management roles
- Incentives & remuneration
UK Regulatory Context
The UK is requiring large companies to publish transition plans. The FCA requires listed companies to disclose against TPT or explain why not. This is moving from voluntary to mandatory.
Global Adoption
TPT guidance aligns with ISSB and IFRS S2. A plan built on TPT can serve multiple disclosure regimes and is increasingly treated as the reference standard.
Who Sets the Standard?
Transition planning is shaped by a small group of frameworks and institutions. Knowing who sets the rules helps you build plans that travel across markets.
Frameworks & Standards
- • TPT: UK transition plan framework (2022-2024), now owned by IFRS
- • ISSB / IFRS S2: Global climate disclosure baseline
- • TNFD: Nature related risk and dependency disclosures
- • SBTi / SBTN: Science based target setting for climate and nature
Policy & Regulators
- • UK Government / HM Treasury: Transition plan policy direction
- • FCA: Listed company disclosure expectations
- • TPR: Pension fund transition plan guidance
Guidance, Not Checklists
Frameworks like TPT are guidance to help you build a plan that works for your organisation. The goal is implementation, not perfect compliance. Let strategy and delivery drive disclosure.
Key Resources
Official frameworks and guidance to support your transition planning.
TPT Disclosure Framework & Sector Guidance
IFRS FoundationComplete TPT materials now owned and maintained by IFRS
IFRS S2 Climate-related Disclosures
ISSBGlobal baseline standard for climate-related financial disclosures
Science Based Targets
SBTiValidated target-setting for 1.5°C pathway alignment
Science Based Targets for Nature
SBTNNature target methodology and guidance
TNFD Recommendations
TNFDNature-related risk and opportunity disclosure framework
Anatomy of a Transition Plan
A credible transition plan answers specific questions. If you can't answer these clearly, your plan needs more work.
Where are we now?
Baseline & ContextCurrent emissions footprint, baseline year, material sources, business model dependencies
Where do we need to be?
Targets & AmbitionScience-based targets, interim milestones, alignment with 1.5°C pathway
How will we get there?
Implementation PathwaySpecific decarbonisation levers, technology choices, operational changes, timeline
What will it cost?
Financial PlanningCapEx requirements, OpEx implications, investment timeline, funding sources
Who is accountable?
GovernanceBoard responsibility, management ownership, incentive alignment, governance structure
How will we track progress?
Monitoring & ReportingKPIs, reporting cadence, verification approach, course correction process
5-Minute Credibility Check
Test your transition plan against these questions. If you answer “no” or “not sure” to three or more, your plan needs work.
Can you name 3 specific actions in your plan with named delivery owners?
Is your CapEx aligned with your plan’s largest decarbonisation levers?
Do you have interim milestones before 2030 (not just 2050)?
Could a new board member read your plan and understand what to do?
Have you stress-tested your plan against supplier or technology delays?
Are your targets validated by SBTi or equivalent science-based standard?
Does your plan include Scope 3 value chain emissions?
Are executive incentives tied to transition plan delivery?
Do you track progress quarterly with clear KPIs?
Has your plan been reviewed by someone outside the sustainability team?
What Good Looks Like
Credible plans are specific, funded, and owned. These examples show the difference.
Weak Plan Extract
“We will reduce Scope 1 and 2 emissions by 50% by 2030 through energy efficiency improvements and renewable energy procurement.”
What's Missing:
- • No specific actions or technologies
- • No capital allocation or funding source
- • No accountability or ownership
- • No interim milestones
- • No verification approach
Strong Plan Extract
“We will reduce Scope 1 emissions 30% by 2028 via: (1) Fleet electrification - 45 vehicles by Q4 2026 (£4.2M CapEx, FY25-27 budget approved); (2) Heat pump installation at Manchester facility - Q2 FY26 (£800K CapEx). CFO accountable, board reviews quarterly vs KPIs: tonnes CO2e/£M revenue, % fleet electric, kWh renewable vs total. Verified annually by third party.”
Why It Works:
- • Specific actions with quantities and timelines
- • Capital allocated and budget approved
- • Named accountability (CFO owns delivery)
- • Measurable KPIs with tracking cadence
- • Verification approach defined
The pattern: Move from aspirational statements to operational specifications. Every claim needs a number, an owner, and a date.
Capability & Data Gaps
The hardest part of transition planning is not writing the plan. It's building the capabilities, data systems, and internal alignment needed to deliver it.
Data & Metrics
Nature impacts are location specific and data remains fragmented across value chains.
Capabilities
Many organisations lack internal expertise to translate targets into operational change.
Governance
C-suite mandate and incentive alignment often lag behind public commitments.
Transition Plans Need Capital
The most common failure mode: transition plans that aren't connected to capital allocation. A plan without funding is a wish list.
Internal Capital
- • CapEx allocation: Is transition investment in the capital plan?
- • Budget cycles: Are sustainability initiatives funded annually?
- • Business cases: Do transition projects compete fairly for capital?
- • Depreciation: Are stranded asset risks priced in?
External Capital
- • Green bonds: Financing specific green projects
- • Sustainability-linked loans: Margin tied to ESG KPIs
- • Transition finance: Funding high-emitting sector decarbonisation
- • Equity expectations: Investor pressure for aligned CapEx
The Credibility Signal
Investors increasingly scrutinise whether CapEx aligns with stated transition plans. A company claiming net zero by 2050 while investing in fossil fuel expansion loses credibility. Capital allocation is the truth serum of transition planning.
Common Pitfalls
Most transition plans fail for predictable reasons. Avoiding these pitfalls dramatically improves credibility.
The Paper Plan
Problem: Beautifully designed PDF, zero operational integration
Solution: Start with operations, document later
The Hockey Stick
Problem: 90% of reductions in the last 5 years of a 30-year plan
Solution: Front-load actions, prove near-term credibility
The Offset Reliance
Problem: Assuming offsets will cover the gap
Solution: Prioritise actual reduction; offsets for residual only
The Technology Bet
Problem: Depending on unproven tech at scale
Solution: Plan with available tech; scenario test emerging options
The Siloed Plan
Problem: Sustainability team writes it, business ignores it
Solution: Business unit ownership from day one
The Static Document
Problem: Published once, never updated
Solution: Annual review cycle, continuous improvement
Transition Plans in Context
A transition plan doesn't exist in isolation. It connects to targets, disclosure, finance, and ultimately to real-world landscapes and ecosystems.
The Corporate Sustainability Journey
↩ The journey is cyclical – as you deliver and report, return to understanding with new insights.
Upstream: Targets
Your transition plan operationalises your targets. Without validated targets, you don't know what you're transitioning towards. SBTi targets define the destination; the transition plan maps the route.
Downstream: Embedment
A transition plan on paper becomes reality through embedment. Every function needs to understand their role in delivery. The plan provides the “what”; embedment provides the “how” across the organisation.
The Pandion View
We believe transition plans should be operational documents, not communications exercises. They should be written by the people who will implement them, not the people who will publish them.
The best transition plans are boring to read and exciting to implement. They're full of specific actions, timelines, and accountabilities – not aspirational language and stock photography.
As a hybrid professional, we help clients build transition plans that connect corporate ambition to operational reality. We understand both the boardroom and the shop floor – and we know that credible transition happens where they meet.