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.
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
Workforce implications addressed. Communities and workers considered.
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 TPT Framework
The UK Transition Plan Taskforce (TPT) has developed the most comprehensive framework for corporate transition plans. It's becoming the global reference point.
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
- Industry
- Government & public sector
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 aligns with ISSB, TCFD, and CSRD requirements. A plan built on TPT can serve multiple disclosure frameworks. It's becoming the de facto international standard.
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
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.