With mandatory climate reporting underway in Australia, this guide supports boards and investors in navigating the complexities of climate transition planning. It provides timely guidance for organisations navigating the transition to a low-carbon economy. The resource reflects insights from directors and investors who have practical experience preparing and analysing company transition plans and provides an overview of directors’ legal obligations.

The guide aims to support company boards in overseeing the development and implementation of transition plans, including articulating investors’ key priorities. It comes at a time when companies and investors are recognising there is a clear commercial case to address climate risks and prepare for transition opportunities. Climate transition planning is an important strategic capability for Australian organisations, with leading boards embedding climate into core decision-making to remain resilient and competitive in a decarbonising economy.

While each organisation must develop their own responses to the challenges and circumstances they face, experienced Australian boards seek to address several fundamental elements when overseeing the development and implementation of a transition plan:

• monitor and review
• establish governance structures and oversee commercial integration
• develop strategic ambition and targets
• understand risks and opportunities
• build leadership capability
• engage with key stakeholders.