Climate Transition Plan

A climate transition plan is a time-bound action plan that sets out how a company will adapt its business model and operations to meet its climate targets — such as net zero — including the specific steps, investments, and milestones involved.

What is a transition plan?

A transition plan translates a climate commitment — like a net zero target — into a concrete roadmap: what will actually change in the business, by when, and with what resources. Without one, a net-zero pledge is just a stated ambition rather than an operational plan.

What a credible transition plan includes

Baseline emissions and targets — where the company stands today and what it's committing to
Decarbonization levers — the specific actions that will reduce emissions (energy switching, process changes, supplier engagement)
Governance — who is accountable for delivering the plan
Financial planning — the capital and operating expenditure required
Milestones and interim targets — checkpoints to track progress against the long-term goal

Transition plans and regulation

Climate transition plan disclosure is increasingly required or expected under frameworks like CSRD and TCFD, and is a core requirement of the SBTi Corporate Net-Zero Standard — regulators and investors are moving from asking "what's your target?" to "what's your plan to get there?"

References

Transition risk — Wikipedia