Corporate Climate Transition Plans: A Guide to Investor Expectations
Report | Investor Group on Climate Change | March 2022
This report aims to help companies preparing climate transition plans and investors engaging with these improved plans. By summarising existing guidance it provides a clear set of investor expectations for Australian businesses’ climate plans.
It lays out five important principles for adequate climate transition plans:
- Set comprehensive science-based quantitative targets across all material emission scopes (which includes emissions in the supply chain and from customers’ use)
- Outline a strategy to deliver targets, identify enablers and disclose quantifiable impacts
- Set sector-specific commitments and actions aligned with 1.5°C decarbonisation pathways
- Ensure investment commitments (capital expenditure) is aligned to the targets
- Commit to annual transparent disclosure and monitoring with external verification
The report is a useful resource for business stakeholders, including investors, for assessing companies’ climate plans during proxy season.
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