Treasury task force details carbon reporting rules
On October 9th, the Treasury task force explained how public companies and financial firms must outline plans to cut carbon emissions as part of the shift towards a net-zero economy by 2050.
These strategies align with current mandatory climate standards, which are set to be replaced by new measures from the International Sustainability Standards Board (ISSB).
This strategy, formulated by the Transition Plan Taskforce (TPT), builds on the ISSB’s initiatives and draws on work by the Glasgow Financial Alliance for Net Zero.
Public corporations and financial organizations will be expected to use this framework to disclose their emission reduction plans starting in 2025, with the initial report due in 2026.
Junior Treasury Minister Joanna Penn explained the need for compulsory transition plans as part of Britain’s ambition to be the premier net zero financial centre, saying ‘Transition plans’ transparency and accountability are crucial for the economy-wide shift needed for a net zero and climate-resilient future.’
Michael Izza, CEO of the Institute of Chartered Accountants in England and Wales (ICAEW), also welcomed the framework, saying ‘This is a pivotal guide, offering insights into the challenges and prospects in formulating and enacting a climate transition strategy.’
The net zero plan extends the Government’s ‘ten-point plan for a green industrial revolution’, published on November 18, 2020. It set out policies and proposals for decarbonising all sectors of the UK economy to meet the Government’s net zero target by 2050.
The Government stated net zero means “any emissions would be balanced by schemes to offset an equivalent amount of greenhouse gases from the atmosphere, such as planting trees or using technology like carbon capture and storage.”
There is a good chance that these new obligations, in some format, will slowly trickle down to smaller businesses over time. We’ll of course keep you posted!
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