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Last week, the Transition Plan Taskforce (TPT) released a new advisory paper from its Nature Working Group: The Future for Nature in Transition Planning.
This new paper explores how climate transition plans could be applied to nature and provides a roadmap for moving towards holistic climate and nature transition plans.
Our thoughts
Addressing climate change and nature loss are mutually supportive goals. However, to date these dual crises have been addressed in isolation.
The TPT’s release highlights a critical opportunity to bring dual solutions together in climate transition planning, harnessing win-wins for businesses and the environment. In particular:
1. Lessons from climate: Best practice guidance for climate transition planning has been developing at pace (such as the TPT Disclosure Framework). There is a unique opportunity for business to leverage these learnings for nature and leapfrog legacy sustainability barriers.
2. Effectiveness and affordability: Nature and climate are intertwined. Climate change is the third greatest driver of nature loss whilst natural ecosystems absorb roughly half of global CO2 emissions. Addressing nature and climate together can provide dual benefits resulting in a more effective, efficient and affordable transition.
3. Market opportunities: Organisations who can transparently communicate their nature-related risks and opportunities alongside climate can access cost-effective financing (e.g. sustainability linked loans and sustainable bonds). They can also gain market and brand value through transparent sustainability disclosures beyond climate.
If you require support integrating nature in your climate transition plans and the dual benefits it can provide, please reach out to one of our team below.
Report summary
The report acknowledges:
1. The climate/ nature nexus: Nature and climate are highly interconnected and there are synergies and trade-offs between the two. The TPT therefore recommends considering them together.
2. The need for nature objectives in transition plans: The TPT Disclosure Framework currently recognises that actions to mitigate GHG emissions may impact and depend on nature. However, the TPT highlights that the framework does not recommend the disclosure of nature objectives and associated information distinct from climate objectives.
3. That climate is only one part of the picture: Given that climate change is only one of five drivers of nature loss, a climate-centric lens alone will not be sufficient to halt and reverse the nature crisis.
4. The opportunities in holistic transition planning: Transition plans that address both climate and nature together can capture synergies and trade-offs between climate and nature in one strategy. They would equivalently address climate and nature goals, rather than considering nature only in the context of climate objectives. Done correctly, this can also stop the pitfall of considering nature only through the lens of climate objectives.
5. Potential barriers to holistic transition plans: The TPT notes that holistic transition plans could introduce further complexity or lead to a weaker emphasis on nature overall than in a standalone plan.
6. The need for new resources and capabilities: The TPT discusses the need to address the lack of c-suite mandates alongside cost and resource uncertainty around nature
To operationalise holistic transition plans, the TPT recommends that the UK Government should:
a. Develop mandatory reporting requirements for climate transition plans.
b. Update its National Biodiversity Strategies and Action Plans (NBSAPs) to outline how it will deliver its - global nature commitments.
c. Collaborate in a disclosure framework that integrates climate and nature transition planning guidance.
If you want an informal chat on nature, please do reach out on LinkedIn or at information@fola.earth
Background and context
What is the TPT and its Disclosure Framework? The Transition Plan Taskforce (TPT) was launched in April 2022 to develop the gold standard for private sector climate transition plans. The Taskforce has released various frameworks and guidance to support businesses, most notably the TPT disclosure Framework.
The TPT Disclosure Framework is a guideline established by the Transition Plan Taskforce (TPT) to aid organisations in disclosing information about their strategies for transitioning to a low-carbon, sustainable future. The framework is intended to ensure transparency, accountability, and the standardisation of reported information, facilitating stakeholders, especially investors, in making informed decisions.
What are climate transition plans? Climate transition plans are strategic frameworks developed by governments, businesses, or other organisations to reduce greenhouse gas emissions and enhance resilience to climate impacts.
What is the TPT Nature Working Group? The TPT Nature Working Group was established in April 2023 to advise the Taskforce on how to effectively incorporate nature-related considerations into its activities. This group offered guidance on integrating natural elements into the TPT Disclosure Framework and its sector-specific guidelines.
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