What is climate-related transition planning?
Climate-related transition planning (transition planning) is an iterative, forward-looking process. It helps an organisation become more resilient by identifying and implementing actions to reduce greenhouse gas emissions and by managing climate-related risks and opportunities.
A transition plan brings together emission reduction targets and climate-related risks and opportunities in a clear and practical way. It is designed to be realistic, actionable, and aligned with the organisation’s day-to-day operations and level of climate readiness.
Why undertake transition planning?
Consistent, evidence-based transition planning is central to the NSW Government’s ability to meet the state’s legislated emissions reduction targets under the Climate Change (Net Zero Future) Act 2023 and to respond effectively to a warming world.
Transition planning supports implementation of the following NSW Government policies:
The NZGO Policy sets requirements for General Government Sector agencies to decarbonise their own operations and to contribute to whole-of-government emission reduction targets of 50% by 2030, 70% by 2035 and Net Zero by 2050.
Under Policy Action 2: Net Zero Transition Plans, agencies must have long-term net zero transition plans for their operations in place by 1 January 2027 (previously 2026). Each agency should develop a transition plan tailored to its context, strategy and materiality and make it publicly available on its website.
Per TPG25 -10 Framework for Financial and Annual Reporting, NSW Government agencies, businesses and universities – collectively known as NSW entities – must report on climate-related financial disclosures as part of their annual reporting. NSW Treasury published TPG24 -33: Reporting Framework for First Year Climate-related Financial Disclosures which sets up the minimum requirements for climate-related financial disclosures.
Under TPG24-33, transition plans generally contain information on greenhouse gas emission reduction actions, responses to climate-related physical and transition risks, and efforts to realise climate-related opportunities, and can help to meet expectations under mandatory disclosure requirements.
Resources to support NSW organisations
Preparing a transition plan for your organisation can be complex. We’ve developed resources to support NSW government organisations to undergo a credible transition planning process that aligns with NSW climate policies.
Use of the resources is voluntary.
In addition to the resources listed below, organisations can use the Climate Risk Ready NSW Guide to manage the risks and opportunities associated with climate change.
The following resources should be read in conjunction with each other to fully understand their purpose and use.
Climate-related Transition Planning Framework
The Framework provides the foundation for transition planning and helps NSW Government organisations to:
- understand core principles and components of a credible transition plan
- undertake a materiality screening assessment
- align strategy, operations and reporting with climate objectives
- develop a voluntary roadmap with actions and timeframes
Climate-related Transition Planning Framework
Transition Planning Readiness Tool
The Transition Planning Readiness Tool helps NSW Government organisations assess their readiness to undertake transition planning. Based on this assessment, the Tool generates:
- an action plan to advise next steps for transition planning
- a visual roadmap to communicate next steps to the leadership team and governance bodies.
This roadmap can act as a practical blueprint to guide development of a credible and actionable transition plan.
Transition Planning Readiness Reference Guide
The Reference Guide supports effective use of the Tool and provides broader context for transition planning. It:
- explains the Tool’s purpose and provides step-by-step guidance to use the tool
- outlines relevant NSW Government requirements, including NZGO and TPG24-33
- describes what constitutes foundational and good practice transition plans
- introduces key concepts such as materiality and proportionality in the transition planning context.