5 - Introduction to the transition plan

Introduction to the conduct of step 5: definitions, governance, requirements and deliverables.

Figure 5.0.1: The intent of the Transition Plan

🌐 English version of this image.

Bilan Carbone®, after the accounting step, naturally leads to the development of a transition plan, any carbon accounting approach intended to enable the move to action.

The transition plan shall aim to decarbonise the organisation's activity as much as possible by minimising its GHG emissions. The organisation shall consider its transition plan as a continuous improvement approach by taking into account the strengths of multi-criteria approaches, and as a means to reduce risks while seizing new opportunities linked to the energy-climate transition.

Relying on its GHG emissions profile, its maturity level and its level of Stakeholder engagement, the organisation shall build its transition plan by following these sub-steps:

• Step 5.1: define its objectives in the short, medium or long term.

  • Visualise the objectives and baseline trajectories whose planetary ambition is that of the Paris Agreement.

  • Select a descending decarbonisation trajectory or “ top-down ”, i.e. the theoretical trajectory the organisation should follow.

• Step 5.2: Build its action plan and the associated action sheets.

  • As well as estimate the forecast impact of implementing the action plan (reduction potential).

• Step 5.3: Build its trajectory transition

  • Construct an ascending transition trajectory or “ bottom-up ” using the reduction potential of the action plan.

  • Check consistency: the achievable bottom-up trajectory justifies the credibility of the reference objectives (top-down trajectory) over the short or long term depending on the organisation's maturity.

• Step 5.4: Plan the implementation of the actions.

• Step 5.5: Prepare the monitoring and governance of the actions.

Figure 5.0.2: Timeline of the Transition Plan step

🌐 English version of this image.

🔎The definition of the transition plan and the whole ofStep 5 are compatible with and inspired by the Guide for the construction, implementation and monitoring of a transition plan by ADEME, with the difference that Bilan Carbone® formulates progressive requirements according to the organisation's maturity level.

Glossary related to the Transition Plan

All terms relating to the stages of development of the transition plan are explained in the glossary. A reminder is provided below:

• Transition Plan: A transition plan defines the set of actions (what is done), and the envisaged means (what is committed) for reducing emissions related to an organisation's activities, and the evolution of these activities to make them compatible with a sufficiently low-carbon world respecting the Paris Agreement.

• Transition objectives: Within the Bilan Carbone® approach, they aim to reduce GHG emissions and enable the organisation to become more resilient. They are set for several time horizons (short, medium or long term). They are consistent with the organisation's overall objectives and integrated into its overall strategy.

• Transition vision: it represents how the organisation envisages its place in a low-carbon world (long term, i.e. up to 2050). It does not require a detailed description within the Bilan Carbone®, but it allows projection of the organisation's future strategy regarding climate.

• Transition strategy: The organisation's low-carbon transition strategy details the means envisaged to achieve the organisation's objectives while preserving, and ideally improving, its sustainability. The strategy covers material investments, intangible investments (such as R&D or skills), management and policy with all its stakeholders (employees, but also suppliers, customers). Within the Bilan Carbone® framework, the transition plan will lead the organisation to evolve its operating model. As it progresses along the maturity path, the organisation shall consider the relevance of its activities, products and services in a low-carbon world.

• Transition trajectory: Within the Bilan Carbone® framework, the trajectory is defined using an ascending approach (so-called bottom-up): the emissions profile (current situation of the organisation) and the reduction potentials of actions allow projection of an achievable trajectory (trend and evolution of emissions) which strengthens the credibility of the objectives.

• Action plan: A set of concrete envisaged actions enabling the achievement of the transition plan objectives. The action plan is established in the short term (until the next inventory renewal), although some actions extend to the medium or long term. It is the operational translation of the transition plan and the organisation's low-carbon transition strategy.

Figure 5.0.3: Glossary related to the Transition Plan

🌐 English version of this image.

Governance related to the Transition Plan

The governance of the transition plan is part of the overall governance of the Bilan Carbone® approach presented previously.

The framework in which the transition plan is set is defined by specifying the following elements, which may differ according to the organisation's maturity level:

• A steering committee for the management of the transition plan, which serves to ensure proper monitoring of the transition plan as well as its coherence with the organisation's overall strategy. This specific governance for the transition plan is defined in section 1.2 of the approach. Implementation, as well as monitoring of the transition plan, shall be carried out internally.

• The risks and opportunities associated with the transition: these are detailed in Step 2.5. The implementation of the transition plan reduces risks and allows seizing the identified opportunities.

• The elements characterising the organisation's current situation: correctly define the starting point and the context in which the transition plan is set. This state corresponds to the situation described by the Bilan Carbone® emissions profile.

• The organisational boundary and operational boundary to which the transition plan will apply, which must be those covered by the Bilan Carbone®. This implies clearly defining the targets (sites, activities or stakeholders concerned by the actions enabling intervention on these boundaries).

• The establishment of a new transition plan analyses and integrates the transition plan established during the last assessment, to ensure continuity or amplify certain actions to ensure achievement of reduction objectives.

Stakeholder engagement related to the Transition Plan

A Stakeholder engagement action takes place during Step 5 for the construction of the transition plan. It aims at the coconstruction of actions.

Requirements related to the Transition Plan

As a reminder, here is the summary of the requirements and recommendations, for each maturity level. These criteria are explained in detail in the following sub-sections.

Beginner level

Governance

• A: Hierarchical involvement:

  • A1: A coordinator is appointed internally. They shall lead the approach and be responsible for the construction, implementation and monitoring of the transition plan.

Transition plan:

• O: Vision and Objectives

  • O1: The organisation's vision is defined by a medium- and long-term objective (time horizons 2030 and 2050), expressed in absolute value, and consistent with the national strategy.

• P: Action plan

  • P1: The transition plan contains immediate actions, priority actions and process improvement actions for data collection.

• Q: Quantification of actions

  • Q1: An overall emissions reduction potential of the transition plan is evaluated quantitatively. The impacts of implementing the actions are assessed qualitatively.

• R: Low-carbon trajectory

  • R1: The quantification of the reduction potential allows construction of an ascending (bottom-up) trajectory over 3–4 years, i.e. the inventory renewal period. It justifies the achievement of a short-term objective (horizon of the next inventory) consistent with the overall objective.

• S: Monitoring

  • S1: Monitoring and implementation indicators for the actions are defined. Monitoring performance indicators (significant emissions) between each renewal of the approach is not imposed.

Intermediate level

Advanced level

Deliverables related to the Transition Plan

The information and deliverables obtained at the end of Step 5, and associated with the above requirements, shall be reported at the end of the approach:

• The objectives associated with the transition plan;

• The action plan via all the action sheets;

• The trajectory of the transition plan;

• The dashboard-type monitoring system used for tracking the transition plan of the assessment, if applicable.

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