Guidance to assess transition plans

The guidance introduces the 'Triple A' framework (Ambition, Action, and Accountability) and five specific 'Hallmarks' to evaluate corporate transition plans. It emphasizes that credible plans must feature science-based, time-bound targets covering all material GHG emissions (Scopes 1, 2, and 3), detailed financial plans, and strong board-level governance. The document warns against the over-reliance on carbon offsets and the use of national NDCs as a substitute for sectoral science-based pathways, while advocating for annual third-party verification to ensure transparency and accountability.

• Credible transition plans must be based on the 'Triple A' framework, which consists of Ambition, Action, and Accountability, and are further detailed through five 'Hallmarks': Performance Targets, Robust Plans, Action, Governance, and Disclosure.
• Performance targets must be science-based, time-bound, and cover all material Scope 1, 2, and 3 greenhouse gas emissions. These targets should align with 1.5 degree global warming scenarios and be aligned with sectoral pathways by 2030 at the latest.
• Carbon credits and offsets are not acceptable for meeting short- to medium-term targets; they should only be used for residual 'last mile' emissions and must not exceed 10% of total emission reduction efforts.
• A robust transition plan requires a feasible financial plan that details the costs of the transition, how it will be financed, and the resulting impacts on the company's balance sheet, revenues, and costs.
• Governance of the transition must reside with the Board, which is responsible for setting and monitoring the plan, signing off on targets, and conducting regular reassessments at least every five years.
• Transparency is maintained through annual public disclosure of progress using comparable metrics and independent third-party auditing of the transition plan and external verification of GHG emissions.

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} }