ABSTRACT
A climate transition plan is an action plan that clearly outlines how a company will transform existing assets, operations, and business models to transition towards achieving net-zero targets. Climate transition plans help capital market intermediaries identify and channel capital for credible investments, tackle greenwashing, help financial institutions assess the risk of their exposure to specific investments, and assist financial sector regulator assess macro and micro risks arising in the financial system.
There are several stakeholders that play a role in creating a landscape for facilitating transition plan disclosures by corporates, including the government, capital market regulator, financiers, investors, and corporates. These need to work in tandem to ensure robust and credible transition planning by Indian corporates.
This chapter will delve into the following aspects of transition plans: firstly, it will explore the role of transition plans in mobilising transition finance for corporates in India; secondly, it will explore the role different stakeholders and regulations play in ensuring that a robust ecosystem that supports transition planning is developed; thirdly, it will develop the broad contours of a transition planning and disclosure framework for Indian companies that can be mandated by SEBI; finally, it will also present case studies of robust transition planning and reporting by power sector companies globally.
