Assurance of sustainability reporting
This consultation seeks views on the government's proposal for greater regulatory oversight of third-party assurance services for sustainability-related financial disclosures.
As part of the Mansion House package in November 2024, the government set out the steps it is taking to establish a world-leading sustainable finance framework that delivers credible and decision-useful sustainability-related financial information to the financial markets. A high-quality and competitive sustainability assurance market is critical to this mission.
In February 2025, the Financial Reporting Council (FRC) published findings from its market study into the assurance of sustainability reporting, which highlighted demand for stronger regulatory oversight of assurance providers.
This consultation seeks views on a proposal for the planned Audit, Reporting and Governance Authority (ARGA) to be given responsibility for creating a voluntary registration regime for entities that offer third-party assurance services for sustainability-related disclosures. The proposed regime aims to drive trust in the UK sustainability assurance market and support companies to easily identify appropriately qualified sustainability assurance providers.
This consultation forms part of the first phase of consultations to modernise the UK’s framework for corporate reporting, published alongside consultations on exposure draft UK Sustainability Reporting Standards (UK SRS) and the government’s transition plan manifesto commitment. It also forms part of the government’s work to strengthen audit and corporate governance, as announced in the King’s Speech 2024.