New guidance released to align financial and climate transition plans

While climate transition plans are increasingly mandatory across the UK, transition plans are more likely to fail without being backed by financial strategy. A recent study from CDP found that just 9% of businesses have aligned even 5% of their capital spend with their climate transition plans.

To address this gap, the A4S Net Zero Taskforce has launched new guidance to help organisations integrate financial planning into their climate transition strategies.

The Accounting for Sustainability Project (A4S), established by HM King Charles III in 2004, works to support the integration of sustainability into financial decision-making. It collaborates with finance leaders, investors, and policymakers to encourage long-term, resilient business models by considering environmental and social factors alongside financial outcomes.

The new guidance aims to support corporate organisations as they calculate the cost of the climate transition and improve the overall planning process. Specifically, it aims to help organisations:

• Identify and quantify the financial implications of the actions required to deliver your plan
• Calculate whether you have sufficient finance to deliver your targets or whether additional finance needs to be raised
• Demonstrate to others that you are committed to turning ambition into action
• Integrate transition planning into existing processes and governance mechanisms 
• Work collaboratively, both internally and externally with your value chain
• Prioritise action, based on emissions reduction potential, cost, feasibility and levers of influence

What is a transition plan and why is it important?

A transition plan sets out how a business will adapt its operations, assets, and overall strategy to align with climate goals. In the UK, many financial institutions and large businesses are already required to publish transition plans, with more sectors expected to follow.

If you haven’t already created a transition plan yet, our experts at Sustainable Energy First are here to help. Get in touch today for a no-obligation chat.

You can read the full A4S guidance here.