UK higher education institutions must consider climate transition planning

This year is a milestone year on the path to 2050. The next 25 years will see the UK government work towards the ambitious and legally binding target to cut greenhouse gas (GHG) emissions to net zero. Accordingly, 2025 will be a year to reflect on progress to date against climate commitments and a year to revise climate strategy as part of the ongoing transition planning process.

This process will include reflection on whether large organisations – which include universities and other higher education institutions – have adequate procedures in place to help towards the 2025 goals. These plans likely include CTPs, with many universities already having published such documents. However, for institutions still to set out and publish plans, it is important to know what CTPs involve and what must be considered in line with net zero targets. It comes ahead of expected UK government consultations on mandatory sustainability standards, with these standards to include CTPs.

CTPs are living documents which set out and guide an institution’s strategy to achieve its climate commitments. Significant guidance has been published on transition planning in recent years. In particular, the UK Transition Plan Taskforce (TPT) was launched by the Treasury in March 2022 with a mandate to develop good practice guidance for CTPs. The TPT disclosure framework was published in October 2023, with additional sector-specific guidance published in April 2024.

Many private and public sector institutions have already published CTPs voluntarily and increasingly they are looking to align with the TPT framework.

Even in advance of mandatory disclosure requirements, there are several benefits to publishing a CTP. Lenders and grant funders are including sustainability considerations when evaluating loans or grants and a CTP not only states the university’s commitments but also demonstrates the initiatives undertaken to decarbonise. There are also reputational benefits to consider which may attract climate-related research activities. 

James Hay, climate and sustainability expert at Pinsent Masons, said: “For universities, important aspects of a CTP will revolve around decarbonisation of the university estate as a significant proportion of GHG emissions derive from natural gas boilers and purchased electricity.”

Business travel and commuting of university staff is another area of concern. There will also be residual emissions which cannot be avoided, and universities may contemplate how to offset those to achieve net zero.

In recent years, many institutions have published net zero commitments without undertaking a full transition planning process. However, 2025, as a milestone year, will shine a spotlight on gaps between ambition and reality.

Chris Owens, universities specialist at Pinsent Masons, said: “Given the various financial challenges that many universities face right now and at a time when the cost of borrowing and building is significantly higher than it was when many universities set their net zero commitments, universities need to ask themselves some searching questions as to whether those commitments remain deliverable. Sticking with commitments that may become challenging or, worse, are clearly impossible to achieve in practice, raises a real risk of greenwashing.”

Hay said: “As a result, in future CTPs we may see a shift in tone away from ambitious targets towards a more passive approach with universities setting out their dependencies and how they will respond to the net zero transition as it unfolds.” For example, ambitious targets to source 100% renewable electricity may take a backseat to national grid decarbonisation at a slower pace in line with government policy.

Fortunately for universities, a significant proportion of their GHG emissions footprint is within their control to change or influence which means carrying out a proper transition planning process to identify decarbonisation initiatives will support the institution to achieve its climate commitments and result in a well-considered CTP.