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

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Bilan Carbone®, after the accounting step, naturally leads to the development of a transition plan, any approach of 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 related to the energy–climate transition.

Drawing 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 for the short, medium or long term.

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

  • Select a downward 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 projected impact of implementing the action plan (reduction potential).

• Step 5.3: Build its pathway transition

  • Build an upward transition trajectory or " bottom-up " using the reduction potential of the action plan.

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

• Step 5.4: Schedule the implementation of actions.

• Step 5.5: Prepare the annual monitoring of significant activity data. and management of the actions.

Figure 5.0.2: Timeline of the transition plan step

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

Glossary related to the Transition Plan

All terms related to the steps for developing the transition plan are explained in the glossary. They are reminded 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 those activities to make them compatible with a sufficiently low-carbon world that complies with 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 projects its place in a low-carbon world (long term, up to 2050). It does not require a detailed description within the Bilan Carbone®, but it allows the organisation’s future climate strategy to be projected.

• 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 viability. The strategy covers material investments, intangible investments (such as R&D or skills), management and policy towards all stakeholders (employees, but also suppliers, customers). Within the Bilan Carbone®, the transition plan will lead the organisation to evolve its operating model. As it progresses through the maturity pathway, the organisation will be led to reflect on the relevance of its activities, products and services in a low-carbon world.

• Transition trajectory: Within the Bilan Carbone®, the trajectory is defined using an upward approach (so-called bottom-up): the emissions profile (the organisation's current situation) and the reduction potentials of actions make it possible to project an achievable trajectory (trend and evolution of emissions) that strengthens the credibility of the objectives.

• Action plan: A set of concrete actions envisaged to achieve the objectives of the transition plan. The action plan is drawn up in the short term (until the next assessment renewal), even though 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 depending on 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 steering for the transition plan is defined in the 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 allows mitigation of the risks and capture of the identified opportunities.

• 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 emissions profile of the Bilan Carbone®.

• The organisational boundary and operational 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 influence on those 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 secure achievement of the 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 co-construction of the actions.

Requirements related to the Transition Plan

For reference, here is the summary of 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 shall be responsible for the construction, implementation and monitoring of the transition plan

Transition plan:

• O: Vision and Objectives

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

• P: Action plan

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

• Q: Quantification of actions

  • Q1: A global emissions reduction potential of the transition plan shall be quantitatively assessed. The impacts of implementing the actions are assessed qualitatively.

• R: Low-carbon trajectory

  • R1: The quantification of the reduction potential allows construction of an upward approach trajectory (so-called bottom-up) over 3–4 years, i.e. the assessment renewal period. It justifies achievement of a short-term objective (horizon of the next assessment) 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 the set of action sheets;

• The trajectory of the transition plan;

• The dashboard-type monitoring system used to monitor the assessment's transition plan, where applicable.

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