How to ensure the transition label has impact
The publication of a paper with Credit Suisse called "How to ensure the transition label has impact" presented a framework for identifying credible transitions aligned with the Paris Agreement.
It aimed to:
1. Define transition as a concept by presenting a starting point for the market to see a credible brown to green transition as ambitious, inclusive and aligned with the Paris Agreement (thereby avoiding greenwash).
2. Put forward a framework for use of the transition label in practice and propose clearly demarcated roles for both a green and a transition label.
It also outlined some principles that would be needed if such a transition was to be credible and not labelled as greenwashing:
Avoiding Greenwashing when financing company decarbonisation
Guidance to Assess Transition Plans
This paper is designed to provide a complementary and introductory guide to assist stakeholders understand the basic markers of a credible transition plan, however it cannot replace independent in-depth verification and certification.
This short guidance paper and the requirements for Climate Bonds Certification are both based on the ‘5 Hallmarks of a credible transition’ from our 2022 paper ’Transition for transforming companies: Tools to assess companies’ transitions and their SLBs’.
Developing Sector-Specific Criteria
Criteria for other sectors will follow. Currently, we are developing criteria for transition in Agriculture. You can find more information about these on the Standards webpages at this link: https://www.climatebonds.net/standard/available-soon
- Agri-Food | Crop and Livestock Production Criteria
- Agri-Food | Deforestation & Conversion Free (DCF) Criteria
The sector criteria above being developed by Climate Bonds for Agriculture is part of a wider Agri-Food programme which will seek to define and achieve transition in the sector. This will go beyond just agricultural production, touching commodity sourcing across supply chains, food retailers, and logistics. This ongoing work can be followed here.