Newsflash – UK sustainability reporting and related consultations issued– July 2025

During London Climate Week, the UK Government launched three consultations as part of its plan to make the UK the sustainable finance capital of the world.

The consultations seek views on:

• Exposure drafts of UK Sustainability Reporting Standards, based on the International Sustainability Standards Board (ISSB) standards
• Climate-related transition plan requirements
• A proposal to develop a voluntary registration regime for the providers of assurance of sustainability reporting

Each of the consultations closes on 17 September 2025. They have separate response mechanisms.

The Government says: “Collectively, these consultations represent the first step in developing a UK sustainability reporting framework that is fit for the long term. There will then be further phases of consultation, which will cover proposals on sustainability reporting and assurance. This work will be complemented by a consultation that will focus on streamlining the UK’s current non-financial reporting framework.”

UK Sustainability Reporting Standards

This consultation seeks views on the exposure drafts of UK Sustainability Reporting Standards (UK SRS), which are based on ISSB S1 and S2. The consultation proposes only six “minor amendments” to the standards for application in a UK context.

This consultation also seeks views on the costs and benefits of the use of UK SRS, to assist in determining which entities should apply them on a mandatory rather than a voluntary basis – this will be the subject of a future consultation once UK SRSs are published.

The Government intends to publish UK SRSs in the autumn.

Climate-related transition plan requirements

This consultation sets out and asks for views on potential options on taking forward future transition plan requirements, including the role of the Transition Plan Taskforce framework, what constitutes decision-useful information, and the interaction with UK SRSs.

Assurance of sustainability reporting

This consultation seeks views on whether the planned Audit, Reporting and Governance Authority (ARGA) should be given responsibility for creating a voluntary registration regime for entities that offer third-party assurance services for sustainability-related disclosures.

The Government’s press release is available here.