Transition plan
An organisation's time-bound plan for aligning its operations, spending and targets with a lower-emission pathway.
Example
A utility's plan might schedule coal plant closures, renewable investment and retraining for affected staff.
The catch
A plan states intent, and its credibility depends on funding, governance and progress reported against it.
In more depth
Transition plan, explained.
A transition plan is easiest to judge through its capital budget. Look for capital expenditure tied to specific decarbonisation levers, an estimate of how much each lever cuts and a schedule for retiring or converting high-emission assets.
EU sustainability reporting standards ask companies to disclose their climate transition plan, including locked-in emissions from existing assets such as boilers or furnaces with years of life left. Strong plans name their dependencies, such as grid connections or policy support, and say what happens if those fail. They also assign board responsibility and link management pay to milestones. A plan with no budget behind it is a brochure.