With climate transition planning becoming central to global sustainability reporting, a new assessment by the Institute for Energy Economics and Financial Analysis (IEEFA) compares India’s Business Responsibility and Sustainability Reporting (BRSR) framework with the International Sustainability Standards Board’s (ISSB) standards, highlighting key strengths and gaps.
The analysis is based on IEEFA’s climate transition plan framework that is informed by a review of 18 international frameworks, as well as consultations with regulators, companies, investors and research bodies. IEEFA’s framework is grounded in the Transition Plan Taskforce (TPT) framework, which IEEFA identifies as a robust reference for transition plan disclosures.
“The framework aims to evaluate the quality of climate-related disclosures, the essential elements of transition plans, and how that translates to progress by corporates on climate transition outcomes,” says Shantanu Srivastava, research lead, sustainable finance and climate risk, IEEFA.
“The assessment focuses on whether disclosures are decision-useful for investors seeking to assess transition risk, capital allocation plans and long-term resilience,” adds Tanya Rana, energy analyst at IEEFA.
IEEFA’s framework comprises five major categories: Foundation, Governance, Implementation Strategy, Engagement Strategy and Transparency, but the analysis covers only the first four, as the Transparency category reflects the results of companies’ actions, while the analysis is limited to understanding disclosure regulations pertaining to the transition planning process.
Read more here.
