6 steps to move from transition plan to transition planning
Create awareness, buy-in, alignment, and capacity across different functions and levels of the organization. Executive-level sponsorship and monitoring can accelerate this.
Make a clear division between actions/tactics being taken now and actions/tactics that are about preparing for dynamic transition planning.
Develop a detailed understanding of which elements of your commercial proposition (i.e., business model and products/ services) are most exposed to risk, have the most potential, or are neutral to the transition. Conduct a double-materiality assessment and apply scenario analysis and risk management tools to gain insights and prioritize.
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Develop a comprehensive approach to deal with Scope 3 GHG emissions, including a robust inventory assessment and an integrated value chain engagement strategy aligned with the relevant material strategy/business model shifts in your sector. Invest in alignment with national climate transition plans to benefit from policy and incentives. Be transparent about policy dependencies.
Rigorously assess and update existing policies, metrics/KPIs and targets, and governance/ accountability processes to align with transition planning priorities.
Ensure sufficient investment allocation, supported by engagement with investor and lender stakeholders to mobilize capital flows to support the implementation of transition planning.
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