In June 2024, the International Financial Reporting Standards (IFRS) Foundation made a landmark decision by adopting the Transition Plan Taskforce (TPT) guidelines into its global sustainability standards. While the TPT officially concluded its mandate on 31st October 2024, its legacy continues to influence corporate climate disclosures, bringing clarity and accountability to the pathway’s businesses take toward net zero. With the upcoming UK Sustainability Disclosure Standards (UK SDS) expected in Q1 and Q2 of 2025, the integration of TPT principles into the global reporting landscape reflects the growing momentum for harmonised and credible climate-related disclosures. 

The TPT’s approach focused on transparency and accountability, providing companies with a structured framework to outline actionable plans for decarbonisation. Its principles build upon established frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD) and Science-Based Targets initiative (SBTi), offering a practical, measurable pathway for aligning business strategies with global climate goals. By placing these principles at the forefront of corporate governance, the TPT framework strengthened the integrity of transition plans, addressing investor demand for disclosures that are both credible and actionable. 

Importantly, the influence of the TPT is not confined to the UK. Frameworks such as the European Sustainability Reporting Standards (ESRS) and the Corporate Sustainability Reporting Directive (CSRD) reflect similar principles, showing how the TPT’s emphasis on credible transition planning is resonating across jurisdictions. This global convergence highlights the increasing expectation for companies to embed climate considerations into their financial strategies, demonstrating clear progress towards decarbonisation in a way that meets the scrutiny of regulators and stakeholders alike. 

The adoption of the TPT guidelines by the IFRS underscores their scalability and global relevance, enabling companies across sectors to navigate their unique decarbonisation challenges while remaining aligned with broader climate goals. By requiring businesses to set science-based targets and disclose governance processes that underpin their climate strategies, the framework demands a depth of transparency that elevates the quality of corporate reporting. This, in turn, allows stakeholders to evaluate transition plans with greater confidence, bridging the gap between ambition and action. 

Although the TPT itself has concluded, its outputs and principles remain a cornerstone for corporate climate reporting. They have set a benchmark for credibility and measurability, shaping the way companies plan and communicate their net-zero ambitions. Looking ahead, the framework’s integration with international standards such as the ISSB and its alignment with sector-specific pathways will further solidify its role as a guide for harmonised and effective transition planning. 

For businesses, this evolution represents both a challenge and an opportunity. The complexity of aligning with TPT standards demands rigorous analysis, clear methodologies, and consistency across disclosures. Yet those who adopt these principles effectively will not only meet regulatory expectations but also enhance their reputation as leaders in climate action. A robust, TPT-aligned transition plan demonstrates a company’s commitment to accountability, providing a roadmap that reassures investors and stakeholders of its readiness to adapt in a rapidly evolving landscape. 

The TPT has redefined the standard for transition planning, providing companies with the tools to turn ambition into meaningful action. In a world where the pace of change is accelerating, organisations that embrace this framework will not only keep up but lead the way, demonstrating resilience, innovation, and responsibility as they navigate the future. 

Why acting now matters

The conclusion of the TPT and its integration into global standards signal a pivotal moment for corporate climate disclosures. Companies that delay aligning their transition strategies risk falling behind in an environment of increasing regulatory scrutiny and investor demand for transparency. 

Now is the time to act. Building a robust, TPT-aligned transition plan is not just about meeting regulatory requirements — it’s about safeguarding your business against climate risks, unlocking investor confidence, and demonstrating leadership in the global decarbonisation effort. 

To talk to one of our experts about any queries you have on your business’s transition plan by requesting a callback today.

Author: Harry Freeman, Consultant, Simply Sustainable