The disclosure, adoption and implementation of climate transition plans by non-financial companies under recently adopted EU law will require companies to embrace a new approach to manage transition risks effectively and prevent asset stranding. These plans are intended to allow for an evaluation of the company’s business model and strategy against transition risks by investors and lenders. Credible transition plans serve a further key purpose in pursuing Net Zero and the EU climate goals and to avoid risks and impacts that undermine the achievement of climate transition objectives. However, sustainability reporting standards just provide minimum requirements for such plans. In addition, there is no binding definition of credible transition plans under EU law, which has fallen short of elucidating their credibility criteria and indicating the metrics that investors and lenders should apply when assessing the borrowers’ mitigation actions. In this chapter, we draw on a literature review of EU and international soft laws, guidelines and very limited academic contributions on the origin of such criteria generally and at the industry sectoral level. This is in order to identify the key principles of these credibility criteria. The chapter further delves into an analysis of the features of selected KPIs that could be applied to measure the credibility of transition plans of corporates in hard-to-abate sectors in an EU policy context, also taking into account available EU industrial pathways. The analysis is innovative as no credibility assessment criteria have been identified for EU corporates in hard-to-abate sectors that need to satisfy European industrial transition objectives under the European Green Deal. In addition, current literature has failed to translate sectoral credibility attributes into KPIs that stakeholders, and in particular lenders, can use to monitor the credibility of transition plans from an EU policy perspective.