A4S Net Zero Taskforce: Aligning Financial Planning and Transition Planning
The A4S Net Zero Taskforce addresses a key issue organizations are struggling with when it comes to achieving their net zero targets: aligning transition planning and financial planning.
Many organizations have set net zero goals, supported by a transition plan. However, unless these plans are incorporated into the strategic planning, budgeting and forecasting process, they risk being siloed within the business, without adequate integration and funding.
Disclosure standards, such as IFRS S2 Climate-related Disclosures and the European Sustainability Reporting Standards (ESRS), include requirements for disclosing a financial plan associated with a transition plan.
CFOs and finance teams are crucial for the success of net zero
There is limited existing guidance around aligning financial planning and transition planning. The A4S CFO Leadership Network has launched this global Taskforce to fill this gap.
The taskforce will be looking at some key considerations:
- How to embed net zero targets and climate change adaptation into financial planning to ensure long-term resilience.
- How financial planning and analysis (FP&A) and sustainability teams can work together on developing their strategy to achieve their net zero ambitions
- How to ensure that sustainability is integrated into core business planning and strategic decision making.
The Taskforce will focus on the development of implementation guidance which will help organizations to take action. This will in turn help to fulfil disclosure requirements such as those from the IFRS Sustainability Disclosure Standards or the guidance from the Transition Plan Taskforce.
"While addressing climate change is a top priority for many businesses, integrating these goals into financial planning remains a major challenge. The A4S Net Zero Taskforce is addressing this gap, working with CFOs and their teams to ensure that the investments, revenues and costs associated with delivering the transition to net zero are integrated into the heart of the financial planning process." Jessica Fries, Executive Chair, A4S
Who is on the A4S Net Zero Taskforce?
The A4S Net Zero Taskforce was formed to bring together CFOs, finance teams, financial institutions and others to focus on unlocking a key challenge that is slowing progress towards net zero targets globally. The challenge selected was financial planning. The taskforce includes:
Steering Committee
- Adam Pradela, Sustainability CFO, DHL Group
- Martin Murray, Group CFO, Swire Pacific Limited
- Barry O'Regan, CFO, SSE
- Bill Tofflemire, CFO, Mattamy Asset Management
- Sally Ding, CFO, Heathrow Airport Holdings
Working group members
The members of the working group represent financial institutions and real economy organizations. These include:
