CTAPs Were Trending at Climate Week: What Your Business Needs to Know to Stay Ahead

Published: October 10, 2024 by Phoebe Shaw

Climate Policy Leadership

Authored By: Jane Eisenhardt & Phoebe Shaw

Climate Transition Action Plans (CTAPs) were the talk of the town at New York Climate Week. Also called net zero strategies, climate transition plans, climate roadmaps etc., CTAPs serve one purpose: providing businesses with a clear, science-based path to meet their climate goals. 

CTAPs are quickly becoming the go-to tool for setting, communicating, and achieving ambitious climate targets. Once reserved for advanced sustainability teams, CTAPs are now accessible to companies of all sizes, regardless of how far along they are in their climate journey. Robust transition planning enables companies at any stage to turn ambitious goals into real results, empowering businesses to lead on climate action. 

As more companies develop more comprehensive and ambitious CTAPs, best practices continue to materialize and evolve. Navigating the climate planning landscape can be complex, especially while standards organizations are still consolidating guidance. To simplify this process, EDF has created a free tool that integrates top frameworks to guide you through creating and disclosing a high-quality CTAP. 

Turn Ambitions into Action with EDF’s New CTAP Tool 

EDF’s Net Zero Action Accelerator includes a CTAP pathway designed to help companies develop and disclose high quality CTAPs. The tool integrates key elements like emissions tracking, target setting, net zero strategies, and more, and streamlines the CTAP development process with eight key action steps – all in an interactive and highly customizable format. Each action step aligns with leading guidance and frameworks in the space, including the TPT Disclosure Framework, GFANZ, and Ceres’ Blueprint for Implementing a Leading Climate Transition Action Plan. 

How CTAPs Drive Business and Climate Success 

The business case for climate action is stronger than ever. Companies that lead in sustainability are already seeing the benefits: switching to renewable energy provides cost savings and security, sustainable products are gaining market share, and physical risk assessments are making supply chains more resilient. Plus, climate investments are yielding financial returns. A well-designed CTAP can help unlock these benefits by providing companies with a consolidated, forward-looking plan that aligns climate strategy with core business strategy. Effective climate action is the destination; a CTAP is the roadmap to get you there. 

At its core, a CTAP is a strategic tool that mitigates risk and creates opportunity. It brings together all climate efforts—setting science-based targets, reducing emissions, advocacy efforts, and nature practices—into a unified strategy that aligns with business objectives. This allows your company to advance climate action and improve business performance at the same time. 

Data from CDP shows that transition planning is no longer just a “nice-to-have” to demonstrate climate credibility. It’s essential for accessing capital, driving efficiency, and staying compliant with regulatory and market demands. In 2023, 1 in 4 companies (5,906) disclosed having a climate transition plan aligned with the 1.5°C target, a 44% increase from 2022. Another 36% (8,200) plan to create one by 2025. 

Importantly, CTAPs are not set in stone; they allow companies to address roadblocks and adapt strategies as unexpected changes arise. This flexibility turns a CTAP into a communication channel that highlights progress over perfection, showcasing how businesses are proactively managing their climate goals. 

5 Key Reasons to Get Started Developing a CTAP Today 

  • CTAPs Strengthen Climate Communication: CTAPs are an approved communications tool that can be used to talk about your priorities, both internally and externally.  
  • CTAPs Highlight Industry Gaps: CTAPs not only highlight the actions your company is taking to reduce emissions but also provide a space to outline barriers to implementation. Identifying limitations is key to finding opportunities for improvement and driving system-wide change in your industry. 
  • Stay Ahead of Regulatory Changes: With regulations around climate disclosures rapidly evolving, mandatory CTAPs are on the horizon. By starting now, you can ensure your team is ready with all the necessary components when they become a requirement, putting you ahead of the curve. 
  • Meet Investor Expectations: Investors increasingly expect companies to disclose their CTAPs. Having a well-developed plan can enhance your access to capital and improve relationships with key stakeholders, positioning your business as a forward-thinking leader. 
  • Unify Climate Efforts and Enable Cross-Departmental Action: Even if you don’t have a formal CTAP yet, chances are your company already has most of the components—GHG accounting, emission reduction strategies, targets, and advocacy priorities. A CTAP brings all these elements together in one cohesive document, helping your teams work toward common goals while securing leadership commitment. 

No matter where you are on your climate journey, EDF’s Net Zero Action Accelerator makes it easy to create or refine your CTAP. Take the first step by visiting the CTAP pathway and start building your CTAP now so you can position your business for long-term sustainability and success.