UK / TFC: consultation on draft guidelines to assess credibility of companies decarbonisation paths

Founded in February 2025, in the wake of the Transition Finance Market Review, the UK’s Transition Finance Council, a government-backed coalition comprising asset managers and asset owners, has launched a consultation, until the 12/09/2025 on draft guidelines to help investors assess whether companies are credibly shifting towards lower-carbon business models.

The voluntary Guidelines are designed to be applicable internationally and are interoperable with key disclosure frameworks such as those developed by the Transition Plan Taskforce (TPT) and International Sustainability Standards Board (ISSB) - though the guidelines are not a disclosure framework.

Building on the findings and recommendations of the Transition Finance Market Review, the Transition Finance Concil aims to create a stable and consistent framework to enable investors to assess transitioning entities, minimizing thus the constant risk of greenwashing claims.

The guidelines call for "credible pathways" of decarbonisation, that are defined by reference to the goal of “holding the increase in the global average…