Planet Tracker, an online sustainability think tank, has developed a disclosure assessment template which can be used by investors and lenders to determine the credibility of a company’s climate transition plan. This template synthesizes key elements of existing frameworks, which includes the CDP Climate Transition Plan2, Carbon Tracker’s Company Profile Methodology, McKinsey Sustainability’s “Solving the net-zero equation“, MSCI’s Climate and Net-Zero Solutions, PRI’s Pathways to Net-zero, and the TCFD’s Recommendations, among others.

A climate transition plan is a time-bound action plan that details an organization’s strategy for aligning its assets, operations, and value chain with the latest and most ambitious climate science recommendations, while aiming to be profitable in a Net Zero carbon economy.

Based on Planet Tracker’s analysis of these key elements, we recommend that investors check a company’s climate transition plan to see if it provides information for the following five sections – company overview, climate alignment, policy & governance, risk assessment, and strategic analysis – to provide a credible summary of the company’s decarbonization strategy.