Key to Sustainable Transformation
Climate Transition Plan (CTP)
The Corporate Sustainability Reporting Directive (CSRD) serves as a systemic driver for companies: legal reporting obligations now affect banks, investors, insurers, and customers across the entire value chain.
From 2027 onwards, banks will be required to consider climate risks in lending decisions and will demand robust decarbonization plans. Investors are integrating ESG criteria, focusing on decarbonization, and increasingly excluding companies without a credible Climate Transition Plan (CTP) from their portfolios. Insurers take ESG performance into account when setting premiums and deductibles, while customers and partners expect transparent Scope‑1, ‑2, and ‑3 data along with credible decarbonization roadmaps.
A Climate Transition Plan or according to CSRD a Transition Plan for Climate Change Mitigation (ESRS E1-1) is therefore not only a regulatory requirement but also a critical success factor for financing, investor confidence, and supply chain relationships.
DFGE supports companies in developing tailored CTPs – from emissions analysis and realistic reduction pathways to scenario assessments – ensuring regulatory compliance, stakeholder transparency, and strategic climate management.
- Video: Climate Transition Plan
- Blogpost: The Climate Transition Plan
- Relevant Webinars & Trainings
- ESG Handbook 2026 (available soon)
- Datasheet: DFGE Solutions
- CSRD Information
- Science-Based Targets
- Net-Zero
Why create a Climate Transition Plan?
6 major Advantages
More attractive financing terms & conditions
A resilient CTP reduces perceived climate risks and can enable more favorable interest rates, larger credit lines, and better investor response.
Reduced reputation and greenwashing risk
A transparent, consistent plan reduces the risk that ambitious targets will later be perceived as implausible or inconsistent.
Better access to customers and tenders
Many major customers demand clear climate paths; a CTP increases the chance of remaining in supplier pools or winning new framework agreements.
More efficient fulfillment of reporting requirements
A CTP provides structure and content for CSRD, CDP, SBTi, and other ratings, significantly reducing duplication of work and coordination loops.
Targeted management of investments for decarbonization
The CTP bundles measures, CapEx/OpEx requirements, and priorities so that investments in climate protection are made strategically rather than on an ad hoc basis.
Stronger internal anchoring of climate targets
Through governance, KPIs, and clear responsibilities, climate protection is transformed from an individual project into an integral part of strategy and management.
DFGE-Services for Climate Transition Plans
DFGE provides modular support to companies – from the initial readiness gap analysis to the comprehensive development of a Climate Transition Plan. The basis for this is always the use of your existing data ecosystem: sustainability reports, ISO certificates, financial planning, and risk registers are specifically activated for the development of the CTP.
CTP Gap-Analysis
- Structured readiness check (9 CTP elements)
- Initial screening of your existing documents
- Systematic gap analysis including relevance assessment
- Identification of the biggest gaps and risks
- Prioritized recommendations for action
- Management-ready presentation of results with gap matrix and CTP readiness status
Development of the CTP
- Development or refinement of a comprehensive CTP
- Derivation of 1.5°C-compatible Scope 1, 2, and 3 targets, including interim targets
- Development of a concrete decarbonization roadmap
- Analysis of locked-in emissions and transition risks
- Integration of CapEx/OpEx requirements and financing options into an investable roadmap
- Definition of assumptions for scenario and risk considerations
- Establishment or optimization of governance structures, responsibilities, and incentive systems
- Design of KPI dashboards
- Creation of a consistent, ESRS-compatible CTP document
Flexible CTP Support
- Review of your own complete CTP or individual elements
- Integration of CTP with SBTi targets, CSRD reporting, and CDP requirements
- CDP Climate Change: from gap analysis to review
- Moderation and content design of CTP workshops
- Development of individual CTP modules
- Support in setting up processes and reporting tools
- Sparring partner for internal project teams or end-to-end project management
- Long-term support in implementing the roadmap and regular updates of the CTP
- For your CDP Climate Change project: Implementation of the minimum requirements of a CTP according to CDP requirements
What are the components of a Climate Transition Plan? - The 9 CTP elements
A convincing Climate Transition Plan comprises nine clearly defined elements that are coordinated with each other and systematically address the above-mentioned stakeholder requirements. These nine CTP elements form the content structure of DFGE’s services:
- Fundamentals & Scope – System boundaries, organizational units, time periods (e.g., 2030/2050) and carbon footprint (CCF).
- Climate targets – absolute Scope 1, 2, and 3 targets, 1.5°C-compatible with interim targets.
- Levers & measures – decarbonization levers in operations and the supply chain with clear target links.
- Locked-in emissions – emissions from existing assets and their impact on target exposure and transition risks.
- Investments – aggregated CapEx/OpEx requirements, fossil assets, and sources of financing.
- Assumptions – external and internal parameters such as CO₂ price, market development, growth and energy cost assumptions.
- Risks & opportunities – climate risks, resilience contribution, and financial effects.
- Governance – decision-making structures, responsibilities (RACI), incentive systems, committees, and reporting channels.
- Progress – KPIs, milestones, monitoring and update processes with annual review.
For each CTP element, DFGE identifies which existing data sources (e.g., ISO certificates, financial planning, risk registers, governance protocols) can be used and which specific documents will be created or refined during the course of the project. This results in an integrated CTP that serves both internal control and external requirements from CSRD, SBTi, CDP, or general stakeholder inquiries. Do you have questions about the individual services? Then please feel free to contact us!
Your Advantages
Why you should contact DFGE when creating a Climate Transition Plan
Flexibility
- Tailored to your company and your value chain
- Adaptable to company size, industry, and objectives
- From Scope 1, 2, and 3 emissions reporting to concrete reduction pathways
- Practical and directly implementable
Expert Knowledge
- Over 25 years of experience in climate strategies, decarbonization, and ESG consulting
- In-depth expertise in regulatory requirements such as CSRD, EU Taxonomy, and TCFD
- Combination of scientifically sound methods and pragmatic recommendations for action
The DFGE Network
- Access to international experts and partners from relevant industries
- Best practice examples and innovative approaches to climate transformation
- Support in integrating supply chain perspectives
FAQ | The Climate Transition Plan (CTP) explained
1. What is a Climate Transition Plan (CTP)?
A CTP is a strategic roadmap that helps companies reduce their emissions, manage climate risks, and plan decarbonization along the entire value chain.
2. Why is a Climate Transition Plan important for companies?
Companies need a CTP to meet regulatory requirements such as the CSRD, address the expectations of banks, investors, and insurance companies, and strengthen their market position vis-à-vis customers and partners.
3. What does a Climate Transition Plan include?
A Climate Transition Plan (CTP) outlines how a company will reduce its greenhouse gas emissions and transition toward a low-carbon business model. It typically starts with an analysis of Scope 1, 2, and 3 emissions, which forms the basis for defining realistic reduction pathways and interim targets. In addition, companies conduct scenario and risk analysesand identify concrete decarbonization measures across operations, energy use, products, and supply chains.
A robust CTP is usually structured around nine key elements. These include the scope and boundaries of the plan and the corporate carbon footprint, 1.5°C-aligned climate targets, and clearly defined decarbonization levers and actions. Further elements address locked-in emissions from existing assets, investment planning (CapEx/OpEx), and key assumptions such as carbon prices or market developments. The plan also covers climate-related risks and opportunities, governance structures and responsibilities, and KPIs and monitoring processes to track progress and regularly update the plan.
Together, these components make the CTP a comprehensive roadmap that connects operational measures with strategic management and transparent stakeholder communication.
4. For which companies is a Climate Transition Plan relevant?
A Climate Transition Plan is relevant for companies of all sizes and industries that want to manage their climate strategy in a structured and transparent way. It is particularly important for organizations with energy-intensive operations, complex value chains, or significant Scope 3 emissions.
At the same time, regulatory and market expectations are increasing. Under the Corporate Sustainability Reporting Directive (CSRD), financial institutions, customers, and business partners increasingly expect credible decarbonization strategies. In addition, within CDP Climate Change disclosures, companies are increasingly assessed on whether they have a clear transition plan with defined targets, measures, and governance structures.
A well-structured CTP therefore helps companies meet regulatory requirements, improve performance in sustainability ratings, and strategically manage their decarbonization journey.
5. How does a Climate Transition Plan help with reporting and implementation?
A CTP provides a structured basis for CSRD, CDP, SBTi, and other ESG reporting. At the same time, it defines concrete measures, responsibilities, and KPIs so that climate targets can be implemented in a systematic, transparent, and verifiable manner.
6. What is the “Transition Plan for Climate Change Mitigation (ESRS E1-1)” under the ESRS?
Under the European Sustainability Reporting Standards (ESRS), requirement E1-1 “Transition Plan for Climate Change Mitigation” requires companies to disclose whether they have a plan to ensure their strategy and business model are compatible with the transition to a 1.5°C economy.
This includes information on emission reduction targets, decarbonization levers, investments, governance, and how progress will be monitored over time. A structured Climate Transition Plan provides the foundation for fulfilling these disclosure requirements in a consistent and transparent way.
7. What does CDP mean by a “Climate Transition Plan”?
Within CDP Climate Change, companies are asked to disclose whether they have a climate transition plan aligned with a low-carbon economy and how it is implemented. This includes elements such as emission reduction targets, governance, financial planning, scenario analysis, and integration into the overall business strategy.
A robust Climate Transition Plan therefore helps companies provide clear and credible responses in the CDP Climate Change questionnaire and improve transparency towards investors and other stakeholders.
