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Climate transition plans that deliver value, resilience and credibility

How to develop a climate transition plan to build investor confidence

Are you ready to develop a climate transition plan that delivers value, resilience, and credibility?

As climate risk has become increasingly recognised as financial risk, investors have become a key audience for climate transition plans (CTP).
Together with Radley Yeldar, a creative consultancy, we spoke to a number of banking and financial services leaders on how they assess CTPs when making investment decisions.

Investors told us they need to understand how the companies they hold or are considering investing in are positioned as a company’s ability to navigate the energy transition has direct implications for long-term value, asset resilience, and future earnings. At the same time, investors themselves are under growing pressure to demonstrate that their own portfolios are aligned with a credible transition pathway.

Our report shares the 9 attributes of a CTP that we found build investor confidence and shows how you can move beyond high-level commitments to a disciplined, risk-aware execution model that signals seriousness to investors, lenders, and other stakeholders.

Ashurst quotation mark

"In our experience, a credible transition plan is the result of getting the transition planning process right. Early engagement of the right internal and external stakeholders, ensuring accurate financial and sustainability data as well as alignment with the core business strategy elevates the plan to something that supports investors’ decisions."

Elena Lambros, Partner, Ashurst Risk Advisory



Ashurst quotation mark

"Preparers often think of greenwashing risk from the perspective of reputational harm, or increased investor scrutiny. But when we review transition plans for clients we’re equally focused on potential litigation, be that in the form of shareholder, consumer protection, advertising, or even fraud claims. There’s an increasing body of court judgments and regulatory decisions on the subject. They illustrate the greenwashing areas where companies are particularly vulnerable to challenge." 

Tom Cummins, Senior Counsel, Ashurst

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