Because the FT has famous this morning:

They added:

As a part of a raft of inexperienced measures introduced on final week, the UK authorities stated it might seek the advice of later this 12 months on making transition plans — the place firms define how they may lower emissions and the related prices of doing so — necessary for all giant firms, together with non-public companies.

EY are suggesting that while possibly 80 per cent of FTSE 100 firms have plans of some kind in place solely 5 per cent would adjust to the brand new disclosure framework.

I’m not shocked for 3 causes. First, most transition plans are greenwashing.

Second, the brand new Worldwide Sustainability Requirements Board (ISSB) requirements on environmental disclosure don’t require firms to take this concern severely by leaving sustainability reporting out of accounts and even audit, which means that this greenwashing can proceed.

Third, the combat in opposition to having plans in place is spearheaded by firms like EY, who solely final December wrote this in one in every of their very own publications on the problem:

Decode that and what they’re saying is that firms should not make commitments or they could have to incorporate the monetary penalties of doing so of their accounts. This, after all, they might not want to do. Such commitments might be very pricey.

I’ve lengthy argued that such commitments ought to be made by selling sustainable price accounting. This requires that:

• A firm have a full transition plan.
• That plan be costed, in full.
• Provision for that price be included within the plan in exactly the best way that EY is attempting to keep away from its shoppers having to do.
• These firms unable to finance their transitions ought to be declared carbon bancrupt (if emissions are the problem) or environmentally bancrupt if abuse of the biosphere is the problem as an alternative.

Sustainable price accounting has not gained traction as but, I admit. However the marketing campaign for i is ongoing. I believe it is going to occur, at some point. Massive enterprise and accountancy proceed to faux that the atmosphere is another person’s concern. It is not: it is theirs, and they should take care of it.