Climate transition planning for finance: Cracking the CSO’s budget
"The transition plan is the document where you can articulate why you've made certain trade-off decisions in a way that can build trust with investors."
Transition planning is fast becoming a regulatory requirement – but for Chief Sustainability Officers, a solid climate transition plan can also serve as a powerful budgeting and capital raising tool.
Earlier this month, a group of more than 120 global investors wrote a letter urging policymakers to make ISSB-aligned sustainability reporting mandatory around the world. In it, they made a point of mentioning the requirement for companies to disclose their transition plans, arguing that these support financial institutions in making more informed capital allocation decisions, and adds credibility to their net zero commitments.
