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Platform on Sustainable Finance report on Building trust in transition: core elements for assessing corporate transition plans

Description

In June 2023, the European Commission issued recommendations for the voluntarily use of EU sustainable finance tools for transition finance. This included a definition of transition finance as financing investments that contribute to and align with the transition while avoiding lock-ins, including investments in undertakings or activities with credible transition plans.

The EU framework now prescribes the adoption and disclosure of transition plans that show how business models are aligned with the EU’s environmental objectives. These plans are key to understanding how companies intend to transform and adapt to manage risks, capitalise on opportunities and support climate and sustainability transitions, all aimed at achieving the EU's net zero target by 2050 and improving the resilience and sustainability of the European economy. 

This report by the Platform on Sustainable Finance, an advisory body to the European Commission, provides initial analysis to support financial market participants’ assessment of the core elements of transition plans, aligning with the Commission's Recommendation on Transition Finance. Furthermore, the report explores how integrating the EU Taxonomy and other sustainable finance tools into transition plans can strengthen these plans and improve companies' access to transition finance.  

The Platform on Sustainable Finance presented the report in a webinar on 27 January from 14:00 to 15:00 CET.

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  • 23 JANUARY 2025
Platform on Sustainable Finance report on Building trust in transition: core elements for assessing corporate transition plans