The Debt Discount: A study evaluating the financial track record of companies with transition plans

This study from the International Transition Plan Network can help you to understand the relationship between transition planning and the cost of debt. Based on analysis of over 3,300 publicly listed companies' transition plans between 2016 and 2024, the study finds that companies that disclosed a complete transition plan experienced an average 80 basis point reduction in borrowing costs on debt compared with those disclosing limited or no transition planning information. The study also found that companies that demonstrated progress towards their transition commitments performed better than the wider stock market, and that there was no statistically significant effect that transition planning negatively impacts profits, return on assets, or long-term stock performance. This resource will be especially beneficial to sustainability, risk, and finance professionals.