GARP SCR Transition Plans: A Credibility Checklist (Targets, Capex, Metrics, Governance)
- Kateryna Myrko
- Jan 21
- 2 min read
Why GARP SCR Transition Plans Matter Now
Within the GARP SCR (Sustainability And Climate Risk) knowledge domain, transition planning has moved from “nice to have” narrative to decision-useful, disclosure-linked infrastructure. GARP’s own program description highlights transition planning as a core topic area for the SCR Certificate.
At the same time, “official” disclosure expectations are converging around transition-plan transparency. IFRS S2 (Climate-Related Disclosures) is effective for annual reporting periods beginning on or after 1 January 2024 and explicitly requires disclosures that help users understand climate-related risks and opportunities, including information about an entity’s climate-related transition plan (if it has one). The UK government has also continued to consult on implementation routes for transition plan requirements and explicitly references the Transition Plan Taskforce (TPT) work.
This environment increases the cost of low-credibility plans and increases the value of a structured checklist.
What GARP SCR Means By Transition Planning And Transition Plans
The GARP SCR curriculum distinguishes between:
Transition Planning: the internal process of developing a transition strategy and managing transition risk; and
Transition Plans: the external-facing documents for investors, shareholders, and regulators that communicate that strategy.
It also notes that financial institutions are increasingly requesting transition plans from companies as an input to investment decisions and to support their own transition efforts, with reference to market initiatives such as Climate Action 100+ and GFANZ.
The Official Framework Baseline You Should Anchor To
A credibility assessment is stronger when anchored to widely recognized, “official” baselines:
TPT Disclosure Framework (October 2023): Developed under a UK government mandate; structured around principles for good-practice transition planning and disclosure.
GFANZ Guidance For Financial Institution Net-Zero Transition Plans: Provides recommendations and resources for financial institutions creating transition plans.
IFRS S2 And Supporting Implementation Guidance: Explains what disclosures IFRS S2 requires related to climate-related transition and transition plan disclosure (where applicable).
In the GARP SCR curriculum, the TPT framing is summarized as Ambition, Action, Accountability—a useful lens for spotting “paper plans” that are not resourced or governed.
A Credibility Checklist For GARP SCR Transition Plans
Summary Table: GARP SCR Transition Plans Credibility Scorecard
Pillar | Minimum Evidence | Strong Evidence | Typical Red Flag |
Targets | Net-zero + interim targets | Scope coverage + pathway alignment + limited offset reliance | Distant target only |
Capex | Stated investment themes | Quantified capex/R&D + capital deployment KPIs + carbon pricing | “Strategy” with no resourcing |
Metrics | Core emissions metrics | Category-based KPI set + methods + baselines + verification | Undefined KPIs |
Governance | Stated oversight | Board mandate + incentives + integration into planning/reporting | No accountability owners |
How To Use This In Practice
Apply the checklist in two passes:
Credibility Gate: Can you trace Targets → Capex → Metrics → Governance without gaps?
Decision Use Test: Would a lender, investor, or regulator be able to evaluate progress quarterly/annually based on disclosed KPIs and governance mechanisms?
This is precisely the mindset expected in GARP SCR coverage of transition planning: plans must be ambitious, action-oriented, and accountable—backed by measurable metrics and governance that can withstand scrutiny.
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