Submission on Climate-related Transition Planning Guidance

<p dir="ltr">The urgency of the global climate crisis requires immediate and decisive action. The scientific consensus is unequivocal - to prevent the most severe impacts of climate change, it is essential to rapidly and substantially reduce greenhouse gas emissions and transition away from fossil fuel dependence. Businesses are central to this effort - not only as significant sources of emissions, but also as key drivers of transformative change.</p><p dir="ltr">The UTS Institute for Sustainable Futures (ISF) has undertaken an assessment of the net zero pledges of Australian corporates, including transition plans, against the recommendations of the United Nations High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities (UN HLEG) in the report, Integrity Matters: Net Zero Commitments by Businesses, Financial Institutions, Cities and Regions (2024). A subsequent report, Real Zero Leadership: Positive Practice in the Net Zero Pledges of Australian Companies (2025) highlighted companies prioritising science-based decarbonisation, committed to phasing out fossil fuels without the use of offsets and carbon capture and storage. The Centre for Climate Risk and Resilience (CCRR) has done further work on mapping how corporations can achieve net-zero goals, with work showing that particularly the availability and reliability of Scope 3 data remain a challenge and thus hampers clear progress towards decarbonisation.</p><p dir="ltr">Our research found that the net zero pledges and transition plans we assessed generally fell short of global best practice and scientific requirements. It is difficult for stakeholders to assess the credibility and effectiveness of company transition plans in part due to inconsistent data and disclosures.</p><p dir="ltr">We therefore welcome the Treasury’s initiative to provide transition planning guidance, and we welcome the opportunity to provide feedback on the draft guidance. To reduce the risk of greenwashing and accelerate real-economy transition, the guidance needs to provide a framework for high-integrity, transparent and accountable transition planning in Australia. The observations and recommendations in this submission aim to support this</p>