🔊 #nature is coming to the fore in climate transition plans, under the new financial services sector-specific guidance released by the Transition Plan Taskforce (TPT) yesterday. 🌿
The expectation (previously set) is for Banks, Asset Owners and Asset Managers to:
Reduce their emissions (the majority of which are financed emissions),
Manage their climate-related risks and opportunities (e.g. by supporting clients in building climate resilience or implementing enhanced climate risk management frameworks to address borrowers who are unable to transition), and
Use their levers to enable the economy-wide transition (e.g. by enabling the growth of green alternatives).
In addition to advice on interpreting various of the 19 TPT framework elements, the sectoral guidance significantly expands on how FS companies should consider the impacts and dependencies of their transition plan on:
the natural environment, and
stakeholders, society, and the economy.
Reference to using Taskforce on Nature-related Financial Disclosures (TNFD)’s LEAP calculation approach and sector guidance for assessing nature is advised.