Corporate Climate Transition Planning after the Omnibus Overhaul: A Six Question Guide

The transition to a climate-neutral economy requires companies to fundamentally rethink their strategies, operations, and business models. Climate transition plans (CTPs) are emerging as a key legal and governance tool to structure this process. CTPs are not merely a compliance issue for legal departments; they require engagement across the corporate organisation, as well as with external stakeholders and public authorities.

Existing literature on CTPs is often either overly general or highly technical. This six-question guide aims to fill that gap by offering a clear and structured introduction to the key concepts, requirements, and dilemmas surrounding CTPs. It does so by addressing six basic questions:

1) Which companies must adopt CTPs?
2) What content should CTPs contain?
3) How should CTPs be assessed for 1.5°C alignment?
4) What implementing actions must companies take?
5) How can CTP-compliance be monitored and enforced?; and
6) What broader benefits may climate transition planning bring?

The guide uses the amended CSRD and revised ESRS as its main point of reference, while also drawing on other legal regimes and interdisciplinary perspectives. It serves both as an entry point for newcomers and a reference for specialists navigating the evolving CTP landscape.