Climate change is both a business risk and an opportunity to innovate. Investors and other stakeholders need to understand companies’ ambitions and actions in response.
Our guide provides an introduction to transition plan disclosures for those new to the topic.
Companies face increasing cost pressures, disruptive technology and an evolving policy landscape. Against this backdrop, the transition plan is a key mechanism for companies to become climate resilient and to unlock long-term, sustainable value.
As transition planning becomes more common and investor demand for it grows, reporting frameworks and standards – including IFRS® Sustainability Disclosure Standards – increasingly require transition plan disclosures.
Companies can stand out from the crowd with quality transition plan disclosures that tell their story effectively.
High-quality disclosures include relevant detail and are understandable and connected across the annual report.
Transition plans require cross-cutting information. Developing the plan and preparing the related disclosures requires strong connectivity between multiple functions.
This guide focuses on IFRS Sustainability Disclosure Standards; however, it may also be useful to companies reporting under other frameworks, including European Sustainability Reporting Standards (ESRS).
The International Sustainability Standards Board (ISSB) has also released guidance to help companies comply with its requirements in this area.
© 2025 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved.
