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Tools and guidance

Guidance on Metrics, Targets, and Transition Plans

The Metrics, Targets, and Transition Plans guidance describes recent developments around climate-related metrics and users’ increasing focus on information describing organizations’ plans for transitioning to a low-carbon economy. The guidance also describes a set of cross-industry, climate-related metric categories that the Task Force believes all organizations can disclose.

Key points

Given the importance to users of information describing the actual and potential financial impacts of climate-related issues on organizations and the low levels of disclosure associated with the latter, the Task Force undertook work in 2021 to better understand the types of information organizations use to describe the financial impacts associated with climate change and challenges associated with making such disclosures.

Based on the Task Force’s findings (as described in its 2021 status report) as well as market and industry developments, the Task Force believes it is critical to reinforce the importance of organizations disclosing the actual and potential financial impacts of climate change on their businesses and strategies to support users’ assessments. In addition, based on feedback through interviews and the Task Force’s 2021 public consultation on its Proposed Guidance on Metrics, Targets, and Transition Plans, users are keenly interested in organizations disclosing certain fundamental categories of metrics that are critical inputs for measuring financial risk.

The Task Force developed this guidance to support preparers in disclosing decision-useful metrics, targets, and transition plan information and linking those disclosures with estimates of financial impacts. Such information will enable users to appropriately assess their investment and lending risks.