On 25 June 2025, the UK government launched three consultations, focusing on the draft UK Sustainability Reporting Standards (UK SRS), climate transition plan requirements and a voluntary registration regime for providers of sustainability assurance.
These consultations represent a key milestone in enhancing transparency and accountability in corporate sustainability practices across the UK and form part of the UK government’s initiative to modernise the UK’s framework for corporate reporting.
The Department for Business and Trade (DBT) launched a consultation on adopting the IFRS Sustainability Disclosure Standards[1] in the UK through the UK SRS.
The draft UK SRS were developed to adopt the IFRS Sustainability Disclosure Standards, incorporating six minor targeted amendments to ensure these standards are workable in the UK. These modifications draw on recommendations from the Technical Advisory Committee (TAC) and Policy and Implementation Committee (PIC) and aim for clarity, usability, and legal alignment. Further details on these can be found in our “UK SRS consultation” article.
The consultation invites views on the proposed amendments and evidence of the costs and benefits of adopting the UK SRS.
Feedback is also requested on:
The Department for Energy Security and Net Zero launched a consultation on climate-related transition plan requirements. The consultation targets UK-regulated financial institutions and FTSE 100 listed companies to develop and implement credible transition plans aligned with the of the Paris Agreement’s 1.5°C target. Further details can be found in our "UK government transition plan consultation" article.
It explores innovative approaches for consideration, including potential mandatory disclosures or a “comply or explain” model, and even the possibility of a legal obligation for companies to develop and implement (not just disclose) their plans.
The DBT has also launched a consultation on third-party assurance services for sustainability-related financial disclosures.
Key elements the DBT are seeking input on include:
The consultations are open until 17 September 2025 and seek feedback on each of the proposals. The table below outlines what each of the consultations are likely to mean in the UK.
Following the consultation, the UK government will decide on endorsing the draft UK SRS for voluntary use, with final versions expected in autumn 2025.
In parallel, the Financial Conduct Authority (FCA) also plans to consult on requiring listed companies to apply UK SRS. The UK Government will also explore whether these requirements should be extended to companies outside of the FCA’s regulatory scope.
If adopted, large financial institutions and FTSE 100 companies may be required to develop and implement transitions plans to formally integrate climate strategy into their business plans. This may include setting out detailed decarbonisation roadmaps, that cover targets, timelines, and actions, and regularly report on progress.
These proposals expand beyond traditional decarbonisation goals to also consider adaptation and nature-related impacts, highlighting the government’s ambition to drive holistic climate action.
After the sustainability assurance consultation concludes in September 2025, the government will review responses and decide on whether to proceed with the voluntary oversight regime for sustainability assurance providers. This will likely be overseen by ARGA. Further consultation and legislation on eligibility criteria and technical standards may be required. Mandatory registration may be phased in over time following the voluntary registration regime.
There is also potential for mandatory assurance requirements over UK SRS disclosures, including assurance over both quantitative and qualitative disclosures.
By establishing robust reporting standards, promoting transition planning, and creating an oversight regime for assurance, the government aims to foster transparency, attract investment in the green economy, and drive sustainable growth.
[1]The IFRS Sustainability Disclosure Standards were issued by the International Sustainability Standards Board (ISSB) and comprise of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures.
[2]ARGA is a new regulator proposed by the UK government, to protect and promote the interests of investors, other users of corporate reporting and the wider public interest, in response to the March 2021 BEIS consultation Restoring trust in audit and corporate governance.
