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Decoding corporate climate transition plans: A comparative analysis of 14 frameworks.

Astrid B Nicolajsen1, Anders Bjørn2, Tim C McAloone1

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Companies need clear climate transition plans aligned with science-based targets. This study identifies core components across frameworks, showing increased demand for linking decarbonization to business strategy and governance.

Keywords:
Absolute sustainabilityClimate disclosureCorporate climate transition planDecarbonization strategiesScience-based targets

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Area of Science:

  • Environmental Science
  • Corporate Sustainability
  • Climate Policy

Background:

  • Growing environmental pressures necessitate corporate climate transition plans.
  • Lack of a harmonized definition and limited disclosure hinder effective corporate action.
  • Existing frameworks vary in emphasis, granularity, and audience.

Purpose of the Study:

  • To examine prominent frameworks for corporate climate transition plans.
  • To identify key components defining transition plans and analyze disclosure requirements.
  • To understand how disclosure shapes corporate decarbonization expectations.

Main Methods:

  • Analysis of 14 prominent corporate climate transition frameworks.
  • Translation of over 1400 disclosure requests into 13 components and 38 sub-components.
  • Comparative analysis of framework convergence and divergence.

Main Results:

  • Strong convergence found on core elements of transition planning despite framework variations.
  • Frameworks increasingly demand integration of decarbonization strategies with business planning, financial alignment, and governance.
  • Identified 13 key components and 38 sub-components of transition plans.

Conclusions:

  • Findings clarify corporate disclosure expectations for climate transition plans.
  • Provides insights for companies navigating diverse frameworks and for policymakers.
  • Highlights needs for further guidance and capacity building to support robust transition plan implementation and global climate goals.