Chancellor announces plans to make listed companies publish net zero transition plans
The chancellor has announced proposals today that would require UK listed companies to publish net zero transition plans that detail how they will decarbonise.
Speaking at COP26, Rishi Sunak confirmed that initially this will require asset managers, regulated asset owners and listed companies to publish transition plans that consider the government's net zero commitment or provide an explanation if they have not done so.
As standards for transition plans emerge, the government will strengthen requirements to encourage consistency and increased adoption by 2023. The government intends to legislate to deliver this.
It was clarified that making firm-level net zero commitments will not be mandatory. Firms and their shareholders will be able to decide how their business adapts, including how they plan to decarbonise the emissions they finance and what their targets will be.
However, organisations should set out high-level targets to mitigate climate risk, including greenhouse gas reduction targets (eg a net zero commitment); interim milestones; and actionable steps the organisation plans to take to hit those targets.
Listed hospitality businesses include hotel groups such as IHG Hotels & Resorts, Premier Inn owner Whitbread and Easyhotel; pub and bar businesses like Fuller's, Punch Taverns, Greene King and JD Wetherspoon; restaurant groups including the Restaurant Group, Tortilla and Franco Manca operator Fulham Shore; and caterers SSP and Compass.
