A Strategic Leap Towards Sustainability: EFRAG's Guidance on Climate Transition Plans

The European Financial Reporting Advisory Group (EFRAG) has released draft Implementation Guidance for Transition Plans on Climate Change Mitigation, which complements the European Sustainability Reporting Standards (ESRS). This guidance aims to help large listed and unlisted companies create, disclose, and implement effective climate transition plans.

Currently under public review, it addresses the requirements set by the ESRS, focusing on transparency, strategic alignment, and cross-sector collaboration to comply with EU regulations like the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy.