Transition & Decarbonisation

Design the net-zero pathway that satisfies science, survives regulatory scrutiny, and delivers measurable operational change.

  • We help corporates translate climate commitments into costed, time-bound transition plans — covering Scope 1–3 carbon accounting, science-based target setting, site-level risk assessment, and the operational changes required to move emissions trajectories.

Who This Is For

Chief Sustainability Officers, Operations Directors, EHS Managers, and Energy Managers responsible for decarbonisation delivery, environmental compliance, and transition planning across industrial, real estate, and infrastructure portfolios.

What We Deliver

Net-Zero Strategy & SBTi Alignment

We develop decarbonisation strategies aligned with the Science Based Targets initiative (SBTi) framework. This includes baseline emissions inventory, target-setting across near-term and long-term horizons, sectoral decarbonisation pathway analysis, and the governance structure required to track progress and report credibly. Where SBTi FLAG or sectoral guidance applies, we ensure alignment with the relevant methodology.

Decarbonisation Roadmaps

Strategy without implementation detail is aspiration. We build costed, phased roadmaps that identify specific abatement levers — energy efficiency, fuel switching, electrification, process redesign, renewable procurement — quantified by cost, abatement potential, and implementation timeline. Each lever is assigned an owner, a budget line, and a monitoring KPI.

Carbon Accounting (Scope 1–3)

GHG Protocol-compliant emissions inventories covering direct operations (Scope 1), purchased energy (Scope 2), and value chain emissions (Scope 3). We design the data collection architecture, calculation methodology, and quality assurance process required to produce auditable emissions data — not just a number, but a defensible number.

Carbon Credits Due Diligence

For organisations incorporating carbon credits into their transition strategy, we provide independent due diligence on credit quality: registry verification, additionality assessment, permanence risk evaluation, and alignment with the Integrity Council for the Voluntary Carbon Market (ICVCM) Core Carbon Principles. Credits should complement reduction, not substitute for it.

Regulatory Context

This practice is driven by:

    • SFDR (Regulation (EU) 2019/2088) — Product classification under Articles 6, 8, and 9; pre-contractual and periodic disclosures; Principal Adverse Impact reporting for financial market participants. → SFDR Guide

    • SFDR 2.0 Proposed Overhaul (COM(2025) 703) — Proposed replacement of the Article 6/8/9 framework with a new categorisation system: Sustainable, Transition, ESG Collection, and Exclusion products, with mandatory sustainability indicators and a revised PAI regime. → Covered in SFDR Guide

    • SFDR Regulatory Technical Standards (Delegated Regulation (EU) 2022/1288) — Templates for pre-contractual and periodic disclosures, PAI statement methodology, and Taxonomy alignment calculation rules.

    • EU Taxonomy Regulation (Regulation (EU) 2020/852) — Classification system defining environmentally sustainable economic activities; drives Taxonomy-eligible and Taxonomy-aligned KPI calculations for financial products and investment portfolios. Article forthcoming.

    • EU Taxonomy Delegated Acts — Climate (2021/2139), Environmental (2023/2486), and Complementary Climate (2022/1214) delegated acts specifying technical screening criteria and Do No Significant Harm thresholds for all six environmental objectives.

    • EU Green Bond Standard (Regulation (EU) 2023/2631) — Voluntary “European Green Bond” label requiring mandatory Taxonomy alignment of proceeds, allocation reporting, and external review. Effective December 2024.

    • MiFID II Sustainability Preferences (Delegated Regulation (EU) 2021/1253) — Requires investment firms to integrate client sustainability preferences into suitability assessments and product governance processes.

    • Insurance Distribution Directive (IDD) — Sustainability Amendments (Delegated Regulation (EU) 2021/1257) — Parallel requirements to MiFID II for insurance-based investment products.

    • Solvency II Sustainability Integration (Delegated Regulation (EU) 2021/1256) — Requires insurers to integrate sustainability risks into governance, risk management, and investment decisions.

    • Climate Benchmarks Regulation (Regulation (EU) 2019/2089) — Defines EU Climate Transition Benchmarks (CTB) and Paris-Aligned Benchmarks (PAB); shapes climate index product design and portfolio alignment metrics.

    • ELTIF 2.0 (Regulation (EU) 2023/606) — Revised European Long-Term Investment Funds framework facilitating sustainable infrastructure and real economy investments.

    • CSRD (Directive (EU) 2022/2464) — Drives the investee-level sustainability data that flows into SFDR product disclosures, Taxonomy KPIs, and PAI calculations. → CSRD Guide

    • Omnibus Simplification Package (COM(2025) 80/81) — Proposed amendments to CSRD, CSDDD, EU Taxonomy, and SFDR reducing scope and reporting burden; affects data availability from investee companies.

    • ESMA Guidelines on Fund Names Using ESG or Sustainability-Related Terms — Mandatory naming rules for EU-domiciled funds; minimum investment thresholds and exclusion criteria for funds using ESG or sustainability terminology.

    • ESMA Q&A on SFDR Implementation — Ongoing supervisory clarifications on product classification boundaries, PAI calculation methodology, and disclosure timing.

    • EBA Guidelines on ESG Risk Management (EBA/GL/2025/01) — Sets expectations for banks on ESG risk identification and measurement that cascade into lending terms and investment book treatment. Article forthcoming.

    • ECB Guide on Climate-Related and Environmental Risks — SSM supervisory expectations on governance, strategy, risk management, and disclosure for banks; constrains the internal capital processes that shape product offerings.

    • EIOPA Opinion on Sustainability in Solvency II — Supervisory expectations for insurers on integrating sustainability into ORSA, investment management, and underwriting.

    • European Commission Recommendation on Transition Finance (2023/C 371/01) — Non-binding guidance on credible transition plans, Taxonomy use for transition activities, and avoiding greenwashing in transition product claims.

    • EFRAG ESRS Implementation Guidance (IG 1-3) — Technical guidance on ESRS application affecting sustainability data quality flowing from investee companies.

    • National Fund Label Regimes — France (ISR / Greenfin), Germany, UK (SDR / Anti-Greenwashing Rule); national-level fund labelling that runs parallel to or supplements SFDR requirements.

    • ISSB / IFRS S1 & S2 — Global disclosure baseline adopted by 30+ jurisdictions; enables cross-jurisdictional portfolio-level analysis for non-EU investees. → ISSB Guide

    • TCFD Recommendations — Foundation framework for climate-related governance, strategy, risk management, and metrics; embedded into SFDR, ISSB, and supervisory expectations.

    • TNFD Recommendations (v1.0) — Nature and biodiversity risk disclosure framework gaining supervisory traction; relevant for Taxonomy environmental objectives 3-6 and nature-related PAI indicators. Article forthcoming.

    • ISO 14097 — Framework for assessing and reporting investments and financing activities related to climate change.

    • ICMA Green Bond Principles & Social Bond Principles — Industry-standard framework for green, social, and sustainability bond issuance covering use of proceeds, project evaluation, management of proceeds, and reporting.

    • ICMA Climate Transition Finance Handbook — Guidance for entity-level transition strategies underlying transition-labelled instruments; credibility criteria for transition bond frameworks.

    • PCAF Global GHG Accounting and Reporting Standard — Methodology for measuring and disclosing financed emissions (Scope 3 Category 15) across six asset classes; prerequisite for portfolio alignment and SFDR PAI calculations.

    • SBTi Financial Institutions Guidance — Science-based target-setting methodology for banks, asset managers, and insurers covering portfolio coverage, sectoral decarbonisation, and portfolio temperature rating.

    • GFANZ Net-Zero Transition Plan Framework — Voluntary commitment framework and transition plan guidance for financial institutions targeting net-zero financed emissions by 2050.

    • GIIN IRIS+ Impact Measurement System — Standardised impact metrics for impact investing; relevant for Article 9 product impact reporting and impact fund KPI design.

    • IMP / UNDP SDG Impact Standards — Framework for classifying investor contribution to impact; relevant for impact product structuring and avoiding impact-washing claims.

    • PRI Reporting Framework — Largest voluntary ESG commitment framework for asset owners and managers; PRI reporting aligns with but does not replace SFDR obligations.

    • CDP Financial Services Questionnaire — Annual disclosure platform increasingly used by supervisors and investors as a data source for portfolio-level climate assessment.

    • NZAM / NZAOA — Net Zero Asset Managers Initiative and Net Zero Asset Owner Alliance; sector-specific commitment frameworks with interim target-setting and annual progress reporting.

Enhanced by Data & Intelligence

Climatig provides site-level physical and transition risk analysis — identifying which facilities face material climate hazards that may accelerate or constrain decarbonisation timelines. SD-KPI Standards benchmark your sector's decarbonisation performance against peers, highlighting where you lead and where gaps remain.

Explore our data capabilities →