Climate Transition Plan – Why Climate Targets Alone Are No Longer Enough
September 28, 2026
Many companies have set climate goals. That’s the easy part. But then comes the inevitable question: How will you achieve them? That’s where a climate transition plan comes in. It turns ambitions into a concrete, time-bound plan with actions, investments, and clearly defined responsibilities.
From Climate Goals to Action
A climate goal outlines where you are headed, while a climate transition plan describes how you will get there. It outlines the actions that need to be taken, when they should be implemented, how much they will cost, and who within your organization is responsible for them.
Without a climate transition plan, your climate goals risk becoming just a number in your sustainability report rather than something that actually guides your operations—or, in the worst-case scenario, something you’ll later be forced to back away from. If you fail to meet your targets, your company risks finding itself in a difficult position, which could lead to major communication challenges and a loss of trust among employees, customers, and other stakeholders.
A plan provides management and the board with a basis for decision-making, and gives employees a clear picture of what the transition entails and requires in practice.
"We encounter many companies that have ambitious climate goals but lack a clear path to achieving them. That is why a climate transition plan is an important tool for translating those goals into concrete actions," says Jimmy Jensen, climate strategist and expert on transition plans at ZeroMission.
What is a Climate Transition Plan (CTP)?
Climate Transition Plan, or CTP, is the international term for a climate transition plan. It is a strategic plan that outlines what an organization needs to do—and when—to achieve its short- and long-term climate goals. A CTP is designed to withstand external review and is structured to align with several leading regulatory frameworks.
A CTP can be based on various frameworks, such as the Transition Plan Task Force (TPT), CDP, or ESRS. The TPT format is based on three components:
- Ambition – science-based climate goals and what the transition means for business models and value chains.
- Action – time-bound and quantified measures with funding.
- Accountability – allocation of responsibilities, follow-up, and incentives.
It is worth distinguishing between a formal CTP and a simpler climate action plan. The term “climate transition plan” is sometimes used loosely in Sweden to refer to an internal list of actions that includes responsible parties and target years. It can be a useful tool, but it often lacks a link to financing, governance, and transparent reporting, and therefore does not meet the requirements of ESRS E1-1 or TPT.
A CTP can be based on various frameworks, such as the Transition Plan Task Force (TPT), CDP, or ESRS.
When does a company need a climate transition plan?
The requirements are coming from several sources at once. If you are subject to, or are approaching, CSRDreporting, ESRS E1-1 requires you to disclose your transition plan. If you do not have one, you must explain why and indicate if and when you intend to adopt one.
Are you working with Science Based Targets the requirements have become stricter. According to the SBTi’s Corporate Net-Zero Standard V2.0, which was updated in June 2026, all companies must develop and maintain a transition plan.
Even without regulatory requirements, the pressure is mounting. Investors and financiers want to see how you plan to achieve your goals, and in procurement processes, a concrete plan often carries more weight than the goal itself.
Even without regulatory requirements, the pressure to develop a climate transition plan is growing. Investors and financiers want to see how you plan to achieve your goals, and in procurement processes, a concrete plan often carries more weight than the goal itself.
How to Develop a Climate Transition Plan
The first step is to understand where your climate impact actually occurs. This requires a solid foundation in the form of climate calculations. Based on that, you can identify which actions make the biggest difference in reducing your carbon footprint—something that isn’t always obvious.
The next step is to set priorities. Not all actions are equally effective, and not all are equally realistic. ZeroMission uses a transition tool that shows how much each action reduces the company’s climate impact. This provides a clear picture of which actions actually lead to the goals, not just which ones would be desirable.
Finally, the plan needs to be firmly established within the organization, with clearly defined responsibilities, funding, and follow-up. That is what distinguishes a plan that is actually used from one that is simply set aside.
"A climate transition plan should be a living policy document that is integrated into the company's business strategy," says Jimmy Jensen, climate strategist at ZeroMission.
How often does a climate transition plan need to be updated?
Progress is normally reported annually in the annual and sustainability reports, but the plan itself is not revised every year. TPT recommends updating it at least every three years, and in between if goals, operations, or circumstances change significantly.
Here's how ZeroMission can help you
ZeroMission Since 2006, we have been helping companies measure, reduce, and take responsibility for their climate impact. Our climate strategists, including Jimmy Jensen, support you throughout the entire process—from analysis and climate calculations to a complete climate transition plan with concrete, prioritized actions. We can develop everything from an internal transition plan to a formal CTP or a plan designed to meet the requirements of the CSRD and SBTi.
