Guidance to assess transition plans

The 'Guidance to assess transition plans' by the Climate Bonds Initiative provides a framework for evaluating corporate strategies to reach net zero emissions. It introduces the 'Triple A' framework—Ambition, Action, and Accountability—and five specific 'Hallmarks' to help stakeholders identify credible, science-based transition plans that align with the 1.5-degree Paris Agreement goal.

• The 'Triple A' framework for credible transition plans consists of Ambition, Action, and Accountability, which are further broken down into five Hallmarks: Performance Targets, Robust Plans, Action, Governance, and Disclosure.
• Performance targets (Hallmark 1) must be measurable, material, and cover short, medium, and long-term goals for all material scope 1, 2, and 3 greenhouse gas emissions. These targets must align with science-based sectoral decarbonisation pathways and be aligned with the 1.5-degree pathway by 2030 at the latest to be certifiable by Climate Bonds.
• Carbon credits and offsets are restricted in credible plans; they should only be used for 'last mile' or residual emissions that cannot be eliminated and must not exceed 10% of total emission reduction efforts.
• Robust plans (Hallmark 2) require a vision that identifies levers of change, time-bound action plans with interim milestones, and a feasible financial plan that details the costs of transition and its impact on the company's balance sheet and revenues.
• Action (Hallmark 3) and Governance (Hallmark 4) require that plans are actively implemented with annual verification of progress and that the Board of Directors holds responsibility for setting, monitoring, and signing off on the transition plan, including a reassessment at least every five years.
• Disclosure (Hallmark 5) emphasizes transparency through annual public reporting of progress against targets using comparable metrics, and recommends that transition plans and GHG emissions be audited and verified by independent third parties.

APA

Climate Bonds Initiative (2023). Guidance to assess transition plans. https://www.climatebonds.net/files/documents/publications/Guidance-to-Assess-Transition-Plans.pdf

Chicago

Climate Bonds Initiative. Guidance to assess transition plans. 2023. https://www.climatebonds.net/files/documents/publications/Guidance-to-Assess-Transition-Plans.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Guidance to assess transition plans |date=23 October 2023 |url=https://www.climatebonds.net/files/documents/publications/Guidance-to-Assess-Transition-Plans.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2023guidance, author = {{Climate Bonds Initiative}}, title = {{Guidance to assess transition plans}}, institution = {Climate Bonds Initiative}, year = {2023}, month = oct, url = {https://www.climatebonds.net/files/documents/publications/Guidance-to-Assess-Transition-Plans.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }