ARTICLE
19 August 2025

Telling Your Transition Story

KP
KPMG

Contributor

KPMG in China has offices located in 31 cities with over 14,000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi’an, Zhengzhou, Hong Kong SAR and Macau SAR. Working collaboratively across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.

KPMG is a global organisation of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited (“KPMG International”) operate and provide professional services. “KPMG” is used to refer to individual member firms within the KPMG organisation or to one or more member firms collectively.

Introducing transition plan disclosures under IFRS Sustainability Disclosure Standards
China Corporate/Commercial Law

Climate change is both a business risk and an opportunity to innovate. Investors and other stakeholders need to understand companies' ambitions and actions in response.

Our guide provides an introduction to transition plan disclosures for those new to the topic.

Why is transition planning important?

Companies face increasing cost pressures, disruptive technology and an evolving policy landscape. Against this backdrop, the transition plan is a key mechanism for companies to become climate resilient and to unlock long-term, sustainable value.

As transition planning becomes more common and investor demand for it grows, reporting frameworks and standards – including IFRS® Sustainability Disclosure Standards – increasingly require transition plan disclosures.

Telling your transition story

Companies can stand out from the crowd with quality transition plan disclosures that tell their story effectively.

High-quality disclosures include relevant detail and are understandable and connected across the annual report.

Transition plans require cross-cutting information. Developing the plan and preparing the related disclosures requires strong connectivity between multiple functions.

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Next steps: Read our guide

This guide focuses on IFRS Sustainability Disclosure Standards; however, it may also be useful to companies reporting under other frameworks, including European Sustainability Reporting Standards (ESRS).

The International Sustainability Standards Board (ISSB) has also released guidance to help companies comply with its requirements in this area.

Download (pdf): Telling your transition story

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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