What are transition plans, and how do you make one?
Mar 06, 2025
The Corporate Sustainability Reporting Directive (CSRD) is here, and one of its biggest game-changers is the introduction of mandatory transition plans. While the concept itself isn’t new—having long been a core component of frameworks like the Task Force on Climate-related Financial Disclosures (TCFD) and Science-Based Targets (SBTs)—its legal integration into the EU Taxonomy, CSRD, and IFRS S2 has companies scrambling to adapt.
Recent developments, including the EU Commission’s Omnibus Proposal, suggest that certain reporting requirements may be adjusted. However, this does not diminish the importance of transition plans. Regardless of regulatory shifts, investors, financial institutions, and other key stakeholders are still demanding clear, credible transition plans to assess companies’ resilience and alignment with climate goals.
Why Transition Plans Matter
Historically, sustainability and finance operated in silos. Not anymore. The integration of transition plans into financial reporting means sustainability is now a financial imperative. Companies must report their climate-related transition actions within the broader context of corporate strategy and financial planning. Even if some regulatory requirements evolve, a well-structured transition plan remains essential for strategic decision-making, risk management, and securing financing.
The Competitive Advantage
Companies that approach transition planning proactively gain a competitive edge. Access to green loans, sustainability-linked bonds, and favorable investor ratings all hinge on a credible, well-structured transition plan. Plus, aligning with the Paris Agreement’s 1.5-degree target safeguards business resilience and regulatory compliance. Even if reporting obligations shift, financial markets and sustainability-conscious customers will continue to expect transparent, forward-looking climate strategies.
Get the full Overview with our Expert
Our course, created and presented by Fanny Hansen, on transition plans provides a step-by-step guide to navigating this evolving landscape. You’ll learn:
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The key frameworks driving transition planning, including CSRD, ESRS E1, IFRS S2, and TCFD
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How to develop a robust transition plan aligned with both regulatory requirements and investor expectations
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The three pillars of transition planning: Ambition, Action, and Accountability
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How to integrate financial planning into your sustainability strategy
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Best practices for governance, stakeholder engagement, and reporting
Join the Course Today
Understanding and implementing a transition plan isn’t optional—it’s a strategic necessity for businesses, regardless of regulatory changes. Our online course breaks down the complexities into actionable insights, equipping you with the tools to turn compliance into opportunity.
