Climate transition plan

A climate transition plan is a time-bound action plan that sets out how a company will align its strategy and business model with a 1.5°C and net zero emissions pathway. It is not a mere statement of intent, but a roadmap that connects climate targets with the company's real decisions.

A credible plan usually includes interim and long-term targets, the specific decarbonisation levers, links to capital and financial planning, governance over its delivery, and the treatment of locked-in or hard-to-abate emissions.

Key frameworks

Several frameworks have shaped what counts as a good transition plan:

• The UK Transition Plan Taskforce (TPT) published its Disclosure Framework in 2023, with recommendations for robust and comparable plans.
• The IFRS Foundation took over the TPT's disclosure-specific materials in 2024, integrating them into its work on sustainability information.
• In June 2025, the ISSB published guidance on disclosures about transition plans to support the application of IFRS S2.

These frameworks agree that a transition plan does not necessarily require a company to have a plan, but it does require transparency about the company's climate strategy where one exists.

The transition plan in the EU

In the European Union, the CSRD, through the ESRS E1 standard on climate change, requires in-scope companies to disclose their climate transition plan, where they have one, aligned with the goal of limiting warming to 1.5°C under the Paris Agreement. If the company does not yet have a plan, it must say so.

As part of the Omnibus simplification package, EFRAG published a revised draft of ESRS E1 on 31 July 2025. The revision aims to ease the reporting burden while keeping the transition plan as a central element of climate information.

How it connects with targets

A sound transition plan rests on quantified targets. That is why it is usually linked to science-based targets and, where relevant, to the SBTi Net-Zero Standard, which provide a reference for setting goals compatible with 1.5°C. It also relates to climate change mitigation as its underlying objective.

What it means for your company

• Define interim and long-term targets, and the specific levers to reach them.
• Connect the plan with your budget and investment planning, not only with the sustainability function.
• Assign governance responsibilities and a clear monitoring timeline.
• A credible plan is often summarised in three ideas: ambition, action and accountability.

How Manglai helps you

Designing a credible transition plan starts with knowing your baseline. Manglai helps you measure your carbon footprint and structure the information you need to set targets and account for your progress. Discover how Manglai can help you build your climate roadmap.