Climate-related transition plan requirements

The government committed to mandating “UK-regulated financial institutions (including banks, asset managers, pension funds and insurers) and FTSE 100 companies to develop and implement credible transition plans that align with the 1.5°C goal of the Paris Agreement”.

This consultation seeks views on how the government should take forward this commitment in a way that: 

• supports an orderly transition in line with global climate goals
• enhances transparency for investors and promotes efficient capital allocation
• supports companies in capturing the opportunities from the global net zero transition
• supports the growth of the UK’s financial services industry by ensuring its sustainable finance framework is internationally competitive and maintains the UK’s status as a global financial hub. 

The consultation forms part of the first phase of consultations to modernise the UK’s sustainable finance framework, and has been published alongside:

• Department for Business and Trade consultation: Exposure drafts: UK sustainability reporting standards 
• Department for Business and Trade consultation: Assurance of sustainability reporting 

See also:

• IFRS: Transition Plan Taskforce resources 
• Mansion House 2024: enhancing the competitiveness of the UK’s financial services sector 
• Department for Energy Security and Net Zero consultation: Voluntary carbon and nature markets: raising integrity - closing to responses 10 July 2025