AR1. A transition plan relates to the undertaking's efforts in climate change mitigation. When disclosing its transition plan, the undertaking is expected to provide a high-level explanation of how it will adjust its strategy and business model to ensure compatibility with the transition to a sustainable economy and with the limiting of global warming to 1.5°C in line with the Paris Agreement (or an updated inter national agreement on climate change) and the objective of achieving climate neutrality by 2050 with no or limited overshoot as established in Regulation (EU) 2021/1119 (European Climate Law), and where applicable, how it will adjust its exposure to coal, and oil and gas-related activities.
AR2. Sectoral pathways have not yet been defined by the public policies for all sectors. Hence, the disclosure under paragraph 16(a) on the compatibility of the transition plan with the objective of limiting global warming to 1.5° C should be understood as the disclosure of the undertakin
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