Ceres Releases First-of-Its-Kind Resource for Companies To Deliver Leading Climate Transition Action Plans

June 10, 2024 /3BL/ - Ceres has released new corporate guidance on transition planning to help companies address the financial risks of climate change and maximize the opportunities for them to thrive in a low-carbon future.

Ceres' Blueprint for Implementing a Leading Climate Transition Action Plan is a first-of-its-kind resource for companies to develop and implement leading climate transition action plans or CTAPs. CTAPs outline the actions companies take across their business to achieve their sustainability goals and transition to a cleaner, more just economy. Ceres’ guidance focuses on six action areas: setting goals and science-based targets, decarbonizing the business, ensuring a just transition, advocating for public policy, supporting integration and accountability, and tracking and reporting progress.

With more companies beginning to develop initial plans in response to risk, opportunities, and regulations, there are relatively few real-world examples they can tap to apply best practices for developing and implementing CTAPs and make them a core part of strategic planning. Ceres’ report fills that gap by providing case studies of strong transition planning practices from companies including Ball Corporation, General Mills, Mars Inc, and National Grid.

“While many companies have taken the important first step of setting and disclosing their climate goals, it is just a first step,” said Laura Draucker, senior director of corporate climate action, Ceres. “Investors and other stakeholders have moved beyond merely asking for goals and want to know how companies plan to reach them and successfully manage their risk in the shift to a low-carbon economy. Without a forward-looking, near-term, and quantitative action plan that aligns with their core business strategy, companies risk falling behind their peers and losing access to crucial capital. We provide a much-needed guide for companies to realize their climate goals, remain competitive in their industries, and provide long-term shareholder value.”

The report’s release comes as countries and regions advance policies and regulations to support an accelerated transition to a low-carbon economy and as regulators, including in the U.S. and European Union, mandate the disclosure of corporate climate-related risks. At the same time, legislation and policies, like the U.S. Inflation Reduction Act and the European Union’s Green Deal, provide tremendous incentives for companies to eliminate carbon pollution from their business operations.

“With thousands of companies expected to develop their first transition plan over the next two years, Ceres’ report will be a critical resource for them as they work to develop leading plans and meet their business goals,” Draucker added. “Companies that go beyond meeting the baseline regulatory requirements of disclosure and integrate climate-related risks and opportunities into their core business strategies via transition planning can position themselves for compliance and long-term success."

Ceres has called on companies to create transition plans as part of its Ceres’ Ambition 2030 initiative which aims to decarbonize six of the heaviest-emitting sectors of the U.S. economy: banking, electric power, food and agriculture, oil and gas, steel, and transportation. CTAPs are the lynchpin to how leading companies in those sectors translate their climate goals into action, helping propel change throughout their industries and competition among their peers.

“Levi Strauss & Co.’s sustainability strategy is based on sixteen ‘people and planet-first' goals that illustrate our commitment to bettering the world we all share and bring to life Levi Strauss’s philosophy of profits through principles,” said Jennifer DuBuisson, Senior Director of Sustainability, Levi Strauss & Company. “This report makes the case for near-term investments that have long-term benefits while meeting companies where they are today.” 

"Dell’s sustainability goals focus our actions on climate change and the circular economy, and ensuring better outcomes for business, people, and the planet. Ceres’ guidance is an important tool that can help equip companies across the sustainability spectrum to make progress, overcome challenges, and improve over time,” said Meaghan Krohn, Lead Climate Strategist, Dell Technologies.

Ceres’ guidance aligns with disclosure frameworks published by the Transition Plan Taskforce and the Glasgow Financial Alliance for Net Zero. It goes hand in hand with the work of Ceres and its global partners to support investors as they develop and implement investor climate action plans or ICAPs. These plans detail investor action across key areas including investment, corporate engagement, policy advocacy, and investor disclosure.

"Trillium Asset Management offers strategies designed to advance humankind towards a global sustainable economy, a just society, and a better world,” said Kate Monahan, Director of Shareholder Advocacy of Trillium Asset Management. “Ceres’ report outlines action-oriented guidance for companies to do just that and will be a helpful resource for companies that seek to show leadership in these areas.”

About Ceres

Ceres is a nonprofit advocacy organization working to accelerate the transition to a cleaner, more just, and sustainable world. United under a shared vision, our powerful networks of investors and companies are proving sustainability is the bottom line—changing markets and sectors from the inside out. For more information, visit ceres.org.

Media Contact: Reginald Zimmerman, [email protected], 617-247-0700 ext. 136