We are excited to announce the launch of a new working group convened by the World Benchmarking Alliance, and co-convened by Columbia Center on Sustainable Investment. The ATP-Col – Assessing companies Transition Plans Collective was launched in June 2023 and is an ad-hoc working group of 90 individual experts from 40 organizations.
ATP-Col aims to collectively develop a consensual framework with guidance on how to assess companies’ transition plans’ credibility.
Since COP21, the concept of company Transition Plans (TP) has rapidly become a critical topic to drive impact in the real economy regarding its decarbonisation. As shown by the GFANZ’s report “Expectation for real-economy transitions plans”, there are now several TP disclosure frameworks (mandatory or voluntary). GFANZ proposes mapping and categorisation of initiatives dealing with companies’ transition plans. It therefore makes distinction between disclosure frameworks, data collection initiatives (TCFD, CDP, ISSB, UK TPT, EGRAG, SEC….), target-setting methodologies, validation (SBTi, TPI’s carbon performance dimension), and transition plan assessment tools (ACT initiative, Climate Action 100+ and TPI’s management quality dimension). Transition Plans (TP) is a generic term to refer to climate transition plans or net zero transition plans or low carbon transition plans. For more detailed definitions about transition plan content, see ACT Initiative, CDP, Climate Bonds Initiative, EFRAG, GFANZ, IFRS, ISO Net zero Guidelines, TCFD, UKTP…
The UN Secretary General HLEG report on Net Zero commitments by non-state actors also recommends that “non‑state actors must publicly share their comprehensive net zero transition plans detailing what they will do to meet all targets, align governance and incentivize structures, capital expenditures, research and development, skills and human resource development, and public advocacy, while also supporting a just transition” (recommendation number 4). That echoes with its 4th principle: “establish credibility through plans based on science and with third party accountability”.
The emergence of disclosure frameworks, data collection standards and regulations about TP will create more transparency and facilitate data collection. However, it will not answer the crucial point of understanding and assessing the credibility of transition plans.
In the near future it is expected that more assessment methods and tools will emerge from the private sector (consultancies, accountants, rating agencies, ESG analysts, certification organizations…), but also from nonprofit initiatives, NGOs, coalitions, regulators and supervisors. With so many actors contributing it may lead to some misunderstandings of transition plans assessments results. It could also create more confusion for potential intended users such as companies, policy makers, financial institutions, civil society, companies’ clients and providers.
With all this in mind, we suggested creating ATP-Col, in order to pave the way for ambitious future standards and regulations on how to assess the credibility of companies transition plans’.
For more information about ATP-Col please contact Romain Poivet firstname.lastname@example.org
ATP-Col member organisations
All members are participating as experts and do not necessarily engage with the point of view of their organisation.
Document outline development
Hybrid workshop at Climate Week NYC
Finalising draft document
Internal consultation with ATP- Col