CLIENTEARTH SUPPLEMENTAL OPINION ON POTENTIAL LIABILITY FOR CLIMATE-RELATED TRANSITION PLAN DISCLOSURES

The document evaluates the legal implications of proposed UK government requirements for climate-related transition plan (CRTP) disclosures. It concludes that 'comply or explain' and mandatory disclosure regimes are unlikely to materially heighten liability risks for companies and directors, provided existing safe harbour provisions apply. While disclosing the extent of alignment with the Net Zero Objective introduces some risk, it is not considered materially heightened if clear metrics and authoritative standards are used. The authors state that a full legal analysis of requirements to produce an aligned plan or to implement a CRTP is currently impossible due to a lack of detail in the government's consultation regarding obligations, sanctions, and enforcement mechanisms.

• A 'comply or explain' approach to CRTP disclosure is unlikely to significantly increase liability risks for companies and directors compared to the current legal environment.
• Mandatory CRTP disclosure does not materially increase overall liability risk when compared to either the current position or a 'comply or explain' framework.
• Requiring companies to disclose the degree of their CRTP's alignment with the Net Zero Objective is not expected to create materially heightened risk, provided that alignment refers to overall objectives, the TPT Disclosure Framework is used to provide specific metrics, and authoritative standards are available for assessment.
• The legal risk associated with producing an aligned CRTP would be lower if the government uses qualifiers such as 'reasonable efforts' rather than 'best efforts' or a strict absolute obligation.
• A comprehensive legal analysis of the risks associated with the mandatory implementation of CRTPs or the requirement to produce a plan that is aligned with the Net Zero Objective is not possible because the government consultation lacks detail on the scope of obligations, sanctions, and enforcement mechanisms.

APA

KC, A. T., Morrison, P., & Church, L. (2026). CLIENTEARTH SUPPLEMENTAL OPINION ON POTENTIAL LIABILITY FOR CLIMATE-RELATED TRANSITION PLAN DISCLOSURES. ClientEarth. https://www.clientearth.org/media/agwlreaw/19012026-supplemental-opinion-on-transition-plan-disclosures.pdf

Chicago

KC, Andrew Thompson, Phil Morrison, and Lily Church. CLIENTEARTH SUPPLEMENTAL OPINION ON POTENTIAL LIABILITY FOR CLIMATE-RELATED TRANSITION PLAN DISCLOSURES. ClientEarth, 2026. https://www.clientearth.org/media/agwlreaw/19012026-supplemental-opinion-on-transition-plan-disclosures.pdf.

Wikipedia

{{cite report |last1=KC |first1=Andrew Thompson |last2=Morrison |first2=Phil |last3=Church |first3=Lily |title=CLIENTEARTH SUPPLEMENTAL OPINION ON POTENTIAL LIABILITY FOR CLIMATE-RELATED TRANSITION PLAN DISCLOSURES |publisher=ClientEarth |date=19 January 2026 |url=https://www.clientearth.org/media/agwlreaw/19012026-supplemental-opinion-on-transition-plan-disclosures.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{kc2026clientearth, author = {KC, Andrew Thompson and Morrison, Phil and Church, Lily}, title = {{CLIENTEARTH SUPPLEMENTAL OPINION ON POTENTIAL LIABILITY FOR CLIMATE-RELATED TRANSITION PLAN DISCLOSURES}}, institution = {ClientEarth}, year = {2026}, month = jan, url = {https://www.clientearth.org/media/agwlreaw/19012026-supplemental-opinion-on-transition-plan-disclosures.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }