Delivering an emission reduction target without a climate transition plan is like driving without a GPS – it’s much harder and you might not get there.
This is the first piece of a three-part series following our webinar “Crafting a credible climate transition plan”
In this article, we’ll walk you through the basics of a climate transition plan, what key elements it must include, and why a climate transition plan matters to any organisation aiming to reduce its emissions.
What is a climate transition plan?
A climate transition plan (CTP) outlines how an organisation will reduce its emissions and adapt its business model to succeed in a net-zero future. It sets out measurable targets, specific actions, and timelines to reduce greenhouse gas (GHG) emissions, all while aligning with regulatory requirements under the Corporate Sustainability Reporting Directive (CSRD), and voluntary standards such as Science-Based Targets Initiative.
You may also know CTP by other names such as decarbonisation roadmap, climate action plan, or net-zero strategy. Think of it as a blueprint that not only sets long-term targets, but also defines the activities necessary to achieve the targets as well as the investment needs required to succeed.
Why your business needs a CTP
A CTP is a key enabler of delivering on your company’s impact reductions, but a CTP also brings wider business value.
Here’s how your business can benefit:
1. Deliver on customer requirements
As many companies are increasing requirements towards suppliers, a well-constructed climate transition plan allows your organisation to document your emission reduction journey and how you plan to deliver on set targets.
2. Reduce risks and capture opportunities
By integrating climate targets, actionable decarbonisation steps, and comprehensive risk assessments into your core business strategy, you manage potential transition risks while capturing opportunities for efficiency and innovation.
3. Secure capital and investments
Credible disclosure, backed by robust scenario analysis and financial planning, not only builds investor trust but also improves access to capital in a rapidly evolving market.
How to approach your climate transition plan
To make your plan actionable and transparent, this is what you need to do:
Making your climate transition plan a strategic advantage
A CTP is your company’s contribution to a zero-emissions future. By setting clear, Science-Based Targets, and embedding specific decarbonisation actions into your core strategy and financial planning, you can effectively manage climate risks and contribute to driving meaningful change. Regular reviews and updates will keep your plan relevant in a rapidly changing landscape.
If you have further questions about how your organisation can develop and implement an impactful climate transition plan, reach out to our Climate Lead: Ole Høy Jakobsen.
DEIF’s roadmap for corporate climate leadership
In our partnership with DEIF, we developed a tailored climate transition plan that set out a clear, actionable roadmap toward their climate targets. This included a high-level decarbonisation roadmap outlining emission reduction potential, key levers, timelines, and required investments.
Nordic Sustainability has already supported many leading companies with their decarbonisation efforts.
We can help you with:
- Creating your first, or improving on your existing, greenhouse gas inventory
- Help you set Science-based targets and get your targets validated
- Developing smart climate transition plans to help you achieve your targets or adapt your existing climate transition plan to make you progress faster
- Getting climate action integrated into the ways of working through engagement with organisation and leadership and the adaptation of policies and procedures
Author details
Eamon Murphy
Senior Consultant
