Aligning financial planning and transition planning guide
Incorporating transition plans into the financial planning process is key to ensure the benefits and costs from transition activities are properly built into budgets, enabling resources to be allocated effectively and goals achieved.
The climate crisis is not only an environmental emergency – it is a profound economic challenge. Organizations face growing scrutiny from investors, regulators and the public, on their climate policies and targets, but the vast majority are still falling short. A critical gap is the failure to align financial and operational planning with climate transition strategies.
A recent study by CDP found that just 9% of companies have aligned at least 5% of their capital expenditure with their climate transition plans. Without aligning these processes, organizations risk underestimating the true cost of transition, delaying action and misallocating resources.
Financial planning provides credibility to transition planning
Transition planning is essential for understanding and managing the consequences of action and inaction on climate for your organization. Financial plans to support your transition, turn that ambition into action. Transition plans without financial plans are unlikely to succeed.
New guidance to help you take action
Until now, limited support has been available for aligning financial planning with transition planning. This new guidance aims to fill that gap. It will help you:
- Identify and quantify the financial implications of the actions required to deliver your plan
- Calculate whether you have sufficient finance to deliver your targets or whether additional finance needs to be raised
- Demonstrate to others that you are committed to turning ambition into action
- Integrate transition planning into existing processes and governance mechanisms
- Work collaboratively, both internally and externally with your value chain
- Prioritize action, based on emissions reduction potential, cost, feasibility and levers of influence
With this guidance, you can take a critical step towards delivering on your climate goals.
Don’t let ambition stall.
Download the guidance now and take action.
