Credible Transition Plans - Reporting vs Reality

Read time: 15 min        Added date: 10/06/2024

Discover how corporates and investors are actively shaping their credible transition plan (CTP) to work towards net zero goals.

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Credible Transition Plans - Reporting vs Reality Report

Credible Transition Plans - Reporting vs Reality Report

Credible Transition Plans - Reporting vs Reality Report

Available to download now

Read the report (PDF, 2MB) PDF, opens in a new window

 

What is a credible transition plan (CTP)?

A credible transition plan sets out how an organisation will deliver on its strategy to align with the latest and most ambitious climate science recommendations in the journey towards net zero.

Watch Tara Schmidt, Head of Climate & Sustainability Strategy, Lloyds Bank give a snapshot of the findings of our latest research and what it means for corporates.

Reporting vs Reality

Lloyds Bank surveyed 100 sustainability leaders and 100 institutional investors to understand the practical implications of developing a credible transition plan and the role it plays in driving action for both corporates and investors. 

Key findings:

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Corporates focus on setting realistic goals

More than half (53%) of corporates believe there is a need to be realistic about what they can deliver, while 47% described not wanting to go too far and fail.

Being realistic (PDF, 2MB)

Yet ambition is considered a key pillar

More than two-thirds (68%) of investors emphasised the importance of an organisation's transition plan in their decision-making process.

Ambition & credibility (PDF, 2MB)

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Investors are calling for greater transparency

More than two-thirds (69%) of investors said they have called for greater transparency from corporates when measuring ambition and progress.

The investor lens (PDF, 2MB)

 

“To ensure the benefits of the transition are shared widely in the form of a Just Transition - credible transition plans will play a crucial role for corporates as they set their sustainability strategies and, most importantly, drive action.”

Jonas Persson, Managing Director, Head of Sustainability & ESG Finance, Lloyds Bank Corporate & Institutional

The race to net zero

The drive to cut greenhouse gas emissions to net zero by 2050 will require an economic transformation on a scale that hasn’t been seen for centuries. Central to this are credible transition plans. These plans are a vital part of a corporates’ business strategy, helping drive and accelerate the systemic changes required to achieve a net zero economy.

Download the report (PDF, 2 MB) to view all the insights from our study, as well as practical guidance that complements the Transition Plan Taskforce (TPT) work.

 

“It’s encouraging that credible transition plans are becoming a core part of conversations between corporates and institutional investors. This research is just one of the steps we’re taking to support our clients as they develop their credible transition plan. We hope it will be a springboard to further collaboration across industry, finance and government in leveraging transition plans to advance on our sustainability journey, providing practical guidance and insight for both corporates and investors.”

Tara Schmidt, Managing Director, Head of Climate & Sustainability Strategy, Lloyds Bank Corporate & Institutional

Lloyds Banking Group’s own transition plan

Find out more about Lloyds Banking Group’s own transition plan and how it will support us in delivering our decarbonisation targets to drive real economy impact.

Our plan highlights the progress against ambitions and actions we will take towards the transition, including how we will engage with others to help create the right conditions to enable us to meet our targets. Together, we’re forging a path towards net zero. 

Click here to explore our Sustainability Report 2023 (PDF 14MB) – page 116 references credible transition plans.

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