• UK Government continues to position green growth as central to competitiveness: In June, UK Chancellor, Rachel Reeves, presented the first Spending Review under this Government, allocating over £60 billion to climate and energy transition initiatives. For businesses and boards, this green economy boost sends a strong signal that the Government is committed to securing the UK’s place as a prime destination for business investment. The Government has included its plans to support businesses to accelerate their innovation journeys as part of its ‘Plan for Change’. Meanwhile, July research from the City of London Corporation and Bankers for Net Zero (B4NZ) finds that, despite increasing geopolitical and macroeconomic headwinds, the number of UK financial service firms disclosing the net zero targets has continued to rise. Together with the Government’s recent investment announcements, this sustained business commitment to the net zero transition across the UK economy remains a key driver of UK competitiveness. Boards  can consider how to capitalise on the growing availability of green finance to accelerate decarbonisation efforts and reduce long-term risk exposure.
• Drive to modernise the UK’s sustainability reporting framework offers more streamlined approach, in line with business objectives: The Government has announced a package of consultations relating to the UK sustainability reporting framework: on climate-related transition plan requirements for UK-regulated financial institutions and listed companies, on the proposed UK Sustainability Reporting Standards, and on the creation of a voluntary registration regime for third-party assurance of sustainability reporting. Proposals to formalise disclosure requirements and introduce new reporting standards are of material impact to boards. With these consultations underway, NEDs and executive teams may want to start reviewing internal frameworks to ensure that they are well-positioned to support adoption of new requirements, if and how these are introduced. The UK Government has encouraged businesses to make their voices heard in these consultations to ensure that regulation and corporate sustainability governance are fit-for-purpose and in alignment with businesses’ own growth objectives. Similarly, the European Financial Reporting Advisory Group (EFRAG) has announced a public consultation on simplified Exposure Drafts of the European Sustainability Reporting Standards (ESRS) to gather feedback from stakeholders across the EU corporate reporting ecosystem as part of the EU Commission’s Omnibus programme. More details on how to participate are in the Consultations section below.
• The UK’s climate advisory group, the Climate Change Committee (CCC), calls for accelerated progress in mitigation and adaptation. Categorised as points at which low-carbon transitions become self-propelling, “positive tipping points” are key to achieving “necessary acceleration”. After releasing two reports in recent months: Progress in adapting to climate change and Progress in reducing emissions, the CCC finds the UK is now more than halfway to achieving a net zero economy (with emissions 50.4% lower than in 1990). Such progress can be seen as a vote of confidence for the private sector to continue delivering transition action at pace. Exemplified by factors such as the UK’s elimination of coal power at national and sectoral scale, and currently, the clean tech adoption, the UK “may be on the verge of a ‘positive tipping point’” for tackling climate change. NEDs may consider what the strategic advantages of this shift are, and identify opportunities to be an early mover in the “series of clean tech tipping points” that this momentum is expected to catalyse. Boards are able to play a significant role in identifying and supporting the key leverage points where intervention can be most effective at contributing to the remaining half of the UK’s emissions reductions. In terms of climate adaptation, the CCC finds that the UK is making inadequate progress, with no significant progress achieved across 46 identified outcomes for a “well-adapted UK”. Post-publication analysis of the report argues that if businesses are to remain aligned with climate targets, adaptation needs to be prioritised as a business imperative.
• Clean energy and long-term stability at the heart of new Government strategies: The UK Government launched a series of new strategies in June, namely the Modern Industrial Strategy, 10-Year Infrastructure Strategy, National Security Strategy, and Trade Strategy. A common thread among these strategies is a number of climate-related commitments to drive growth have been introduced and/or reaffirmed. In outlining its priority to create “an enduring partnership between business and state”, the UK Government has highlighted clean energy, professional and business services, and advanced manufacturing as key sectors with significant growth potential.

• Autumn Budget: The UK Autumn Budget for 2025 has been announced for 26 November.
• UN General Assembly and Climate Week NYC: Held annually, the 80^th session of the UN General Assembly (UNGA 80) will run from 9-28 September this year, with Climate Week NYC taking place between 21-28 September 2025.
• EU Omnibus ‘Simplification’ Package: The European Parliament is set to vote on the proposals regarding changes to CSRD, CSDDD, EU carbon border adjustment mechanism (CBAM), and the EU Taxonomy as early as 13 October 2025.
• Updated NDCs: Ahead of COP30 in November (10-21 November 2025), the UNFCCC has called on all countries to submit their 2035 NDCs by September 2025. As countries’ NDCs are released, analysis is available through Climate Action Tracker. The UK released its NDC at the start this year with a high ambition, setting the national pathway for business alignment.
• G20 Summit: Just following COP30, the G20 Summit will take place from 22-23 November 2025.

• UK Sustainability Reporting Standards: As part of the first phase of consultations to modernise the UK’s corporate reporting framework, the Department for Business, Energy and Industrial Strategy (BEIS) is seeking views on the Government’s draft UK Sustainability Reporting Standards (SRS), based on ISSB standards (IFRS S1 and IFRS S2). The UK government proposes 6 minor amendments to the standards for application in the UK context. Following the consultation, it aims to publish the final standards in autumn 2025. The consultation closes on 17 September 2025. The Financial Conduct Authority (FCA), which will be responsible for enforcing the UK SRS, will consult on proposals to require the use of UK SRS within the UK Listing Rules once the Government’s endorsement process is complete.
• European Sustainability Reporting Standards: As part of the EU Commission’s Omnibus Proposal, the European Financial Reporting Advisory Group (EFRAG) has launched a 60-day public consultation survey on the revised and simplified Exposure Drafts of the European Sustainability Reporting Standards (ESRS), which runs from 31 July to 29 September 2025. Following consultation, EFRAG is expected to submit its final technical advice to the European Commission by 30 November 2025.
• Sustainability reporting assurance: Alongside the SRS consultation, BEIS has launched a consultation on the UK government’s proposal for greater regulatory oversight of third-party assurance services for sustainability-related financial disclosures through the planned Audit, Reporting and Governance Authority (ARGA). The consultation is also open until 17 September.
• Climate-related transition plan requirements: In June, Department for Energy Security & Net Zero (DESNZ) announced a consultation on options to take forward climate-related transition plan requirements, in line with the UK Government’s commitment to mandate UK-regulated financial institutions and FTSE 100 companies to develop and implement 1.5°C-aligned transition plans. DESNZ has set out routes to implementation to inform the consultation, which closes on 17 September.
• SBTi Corporate Net-Zero Standard: As part of the next phase of its revision period, SBTi has called on companies to pilot test the draft Corporate Net-Zero Standard V2. More information and timelines for the pilot, which is open to businesses of all sizes and locations, are available here. A second round of public consultation on the draft is “expected imminently, before the final updated standard is released in early 2026.”
• Low carbon industrial products: DESNZ is also running a consultation on a framework to deliver the guidance and tools to help buyers identify and compare lower carbon industrial projects. The framework is expected to have an initial focus on the steel, cement, and concrete sectors. The consultation is open until 15 September.
• Changes to public procurement rules: The UK government is consulting on how to create “a simpler and more transparent” public procurement regime. Proposals suggest that UK energy and steel could be classed as ‘nationally important’ under new procurement rules, with the aim of giving homegrown industry an edge over foreign firms. Based on the feedback received, the Government intends to introduce legislation to amend the Procurement Act 2003. The consultation closes on 5 September 2025.
• SBTi Automotive Sector Standard: SBTi launched a consultation on a draft of its Automotive Sector Net-Zero Standard which closed in August. SBTi is now inviting businesses to participate in a pilot testing of the draft Standard. Interested companies have been asked to complete the application form by 12 September 2025.

• CCC report on climate adaptation: In April, the UK’s climate advisory group, the Climate Change Committee (CCC) released the first of its biennial reports to Parliament, Progress in adapting to climate change, which finds across 46 identified outcomes for a “well-adapted UK”, there is not a single outcome with evidence of “good” delivery on adaptation. The report highlights that the majority of policies and plans for climate adaptation have not changed since its previous assessment in 2023, pointing to critical gaps in policy delivery. The UK Government has committed to refreshing the UK’s Carbon Budget Delivery Plan, which is expected “later in 2025.” More information on the outcomes from the report is available in our Policy Deep Dive.
• CCC report on emissions reductions: In June, the CCC published its annual Progress in reducing emissions report, outlining the UK’s progress on reducing emissions and delivering its Nationally Determined Contribution (NDC) This year’s report found that the UK’s territorial emissions (including international aviation and shipping) fell by 2.5% in 2024, with levels being 50.4% below those in 1990. Progress has been driven predominantly by the decarbonisation of the electricity system, and the rollout of clean energy technologies including heat pumps and EVs. While recognising the progress that is being made, the CCC cautions that 80% of the required emissions savings between now and 2030 need to come from outside the energy sector – setting out scope for the UK Government and private sector to work together to pursue critical emissions-savings opportunities across the wider economy. For a summary of the report, see our Policy Deep Dive.
• Scotland’s Carbon Budgets: In May, the Climate Change Committee (CCC) released its report, Scotland's Carbon Budgets: Advice for the Scottish Government, proposing a new set of targets to tackle climate change in Scotland over the next 20 years. In its recommendations, the CCC finds that its proposed first carbon budget for Scotland is deliverable and the 2045 Net Zero target is achievable, but emissions need to fall an average of 57% over the next five years and by 69% to 2035 (compared with 1990 levels). The Scottish Government confirmed its new climate targets on 19 June, in line with the CCC’s advice.
• DESNZ Public Attitudes Tracker: In July, the Department for Energy Security & Net Zero (DESNZ) published the results of its nationally representative annual survey of UK adults’ public awareness, attitudes and behaviours relating to DESNZ policies such as energy and climate change. This year’s results found that overall concern about climate change measured 77%, with overall knowledge of Net Zero measuring 89% — suggesting broadly stable levels of awareness and knowledge from its previous survey.
• Heat records: The Met Office has reported that England recorded its warmest June on record, while the UK experienced its second warmest June since records began in 1884. A June report from the Met Office highlights that UK heatwaves could become “longer and hotter due to escalating climate trends.” The latest State of the UK Climate report shows how baselines are increasingly shifting, with temperature and rainfall extremes “becoming the norm.”
• Willow Review: In June 2025, the final report of the UK Government-backed Willow Review was launched, drawing on surveys of 400 small businesses to set out a five-point plan for sustainability: sustainable materials, optimised logistics, minimised waste, renewable energy and sustainable supply chains. In finding that nearly 75% of SMEs do not understand how ‘net zero’ applies to them, the Review commits to establishing dedicated task forces to develop detailed recommendations for SMEs. The recommendations coalesce around simplifying sustainability plans, improving access to finance, and creating networks to share best practice. Greater engagement with resources including the UK Business Climate Hub is identified as another key strategy for SMEs to take forward.
• Company Directors (Duties) Bill: House of Commons debate on the proposed Company Directors (Duties) Bill was adjourned on 4 July, and is now scheduled to take place on 12 September. The Bill, which was initially introduced in October 2024, would amend Section 172 of the Companies Act 2006 to require company directors to “balance their duty to promote the success of the company with duties in respect of the environment and the company’s employees.” The Bill takes inspiration from the Better Business Act campaign, which brings together over 3,000 businesses in advocating for legislation that supports directors to align social and environmental impact with shareholder returns.
• Net Zero Delivery Summit: A report launched at the City of London Corporation’s third annual Net Zero Delivery Summit in partnership with the Sustainable Markets Initiative. From Commitment to Action, has revealed that UK financial institutions have almost tripled their investment in clean energy projects in just one year. The study of 126 UK financial institutions finds that the UK had the fastest rate of investment increase into clean energy projects across all global financial centres. Together, the five financial centres covered in the report (i.e. UK, US, France, Germany, and Japan) saw an average increase of 59% in clean energy project investments in 2023, compared to 2022.
• UK Environmental Accounts: In June, the Office for National Statistics (ONS) published its 2025 UK Environmental Accounts, which provide accredited official statistics on the contribution of the environment to the economy, the impact of economic activity on the environment, and the UK’s response to environmental issues. This latest measurement of UK emissions finds that consumer expenditure remains the largest single contributor, accounting for 25.4% of total emissions, followed by the energy sector (15.5% of total emissions).
• UK low-carbon productivity study: The University of Exeter and the University of Manchester released a study in July, The effects of low-carbon transitions on labour productivity: analysing UK electricity, heat, and mobility with a techno-economic simulation model, which outlines how the green transition can boost UK growth and productivity across the economy. The study explores both the direct and indirect economy-wide benefits the low-carbon transition could offer the UK from now to 2035. Through analysing the UK’s electricity, transport, and heating sectors, the study’s modelling suggests that the electricity sector could see physical productivity increases by 40% in 2035, transport could see increases of 20% by 2050, and the heating sector could see up to a 10% increase in 2050.

• On 11 June 2025, UK Chancellor Rachel Reeves delivered the first Spending Review under the current Labour Government, establishing each ministry’s spending limits and priorities for the rest of the parliamentary term. The Department of Energy Security and Net Zero (DESNZ) received “one of the largest jumps in capital spending”, with funding for nuclear power, energy efficiency, and carbon capture and storage (CCS) announced. This includes £14.2 billion in funding for the Sizewell C nuclear power station.
• £13.2 billion in funding for Labour’s manifesto commitment to upgrade energy efficiency in homes under the ‘Warm Homes Plan’ was confirmed.
• Although funding for the Department or Environment, Food and Rural Affairs (Defra) is expected to decrease, support for nature-friendly farming through Environmental Land Management schemes is set to more than double over the Spending Review period, from £800 million to £2 billion by 2028-29.

• On 23 June, the Department for Business and Trade published the UK’s Modern Industrial Strategy 2025, setting out a 10-year plan to increase business investment and grow “the industries of the future”. These identified industries include: advanced manufacturing, creative industries, clean energy, defence, financial services, digital and technologies, and professional and business services. Each growth sector has a bespoke 10-year plan to attract investment, support job creation, and enable growth. Five Sector Plans were published alongside the Strategy (with the defence expected to be published shortly):
  • Advanced Manufacturing Sector Plan
  • Creative Industries Sector Plan
  • Clean Energy Industries Sector Plan
  • Digital and Technologies Sector Plan
  • Professional and Business Services Sector Plan
  • Life Sciences
  • Financial Sciences
• In zooming in on the clean energy sector, the Strategy targets at least a doubling of current investment levels across the clean energy industries to over £30 billion per year by 2035. According to gathered data, British companies have been paying the highest industrial electricity prices in the developed world. In effort to address this, the Strategy introduces a new “British Industrial Competitiveness Scheme”, which aims to offer relief to “electricity-intensive” firms by exempting them from paying net zero levies on their energy bills. An estimated 7,000 businesses could be in scope of the scheme, which comes into effect in 2027 and is expected to be funded through energy system reforms. Our deep dive on the strategy can be found on the Knowledge Hub.
• The UK Government’s commitment to more than £60 billion in investment in the green economy has been received positively by green industry leaders. Meanwhile, UK manufacturing firms have called on the UK Government to prioritise stability, particularly in terms of addressing critical skills gaps across these key growth industries.
• The June 2025 introduction of the UK Government’s 10-Year Infrastructure Strategy sets out its long-term ambition for infrastructure growth, outlining a programme for capital spending up to 2035. The Strategy commits to £725 billion in public investment to deliver projects through a new body, the Infrastructure and Service Transformation Authority (NISTA). It also reaffirms commitments to the Clean Power Action Plan, nature restoration efforts in projects overseen by the National Wealth Fund, and a Cabinet Office review of resilience standards across 14 critical infrastructure sectors by 2026. In August, the Defra Group Infrastructure Board was announced, which is quoted to support “fast-tracking 150 planning decisions on major infrastructure projects by the end of this Parliament.”
• The UK’s Trade Strategy was launched at the end of June, outlining plans to align trade policy with climate goals, boost supply chain resilience, and secure access to key imports. One of the UK Government’s three interlocking, business-facing strategies (along with the Industrial Strategy and upcoming SME Growth Strategy), the Strategy introduced measures including: the creation of a new Supply Chain Centre within the Department for Business and Trade to carry out data-driven reviews of critical supply chains and make resilience recommendations; improving import access and export promotion in low-carbon sectors; and updating the UK’s National Contact Point for the OECD Guidelines on Responsible Business Conduct by rebranding it as the Office for Responsible Business Conduct. A breakdown of the Strategy’s policy announcements is provided by the Confederation of British Industry (CBI).
• Also launched in June, the UK’s National Security Strategy 2025 sets out “a new Strategic Framework” for addressing the main challenges the UK faces, emphasising “security at home, strength abroad”. The Framework identifies climate change as a key risk to UK security, setting out a number of climate-relevant actions. The Strategy suggests limiting the scope for foreign policy agreements with major powers like China and Russia, setting firmer rules on mechanisms which “set controls on science and technological developments and mitigate the effects of climate change”. It makes reference to UK foreign policy and working with countries including Nigeria and Brazil, “which are growing in international importance and for which there are new opportunities to deepen investment ties and work together on areas like climate change, science and technology.” Homegrown climate security initiatives including the Forecasting Tipping Points programme were also highlighted.

• Long Duration Energy Storage (LDES) funding scheme: In April, Ofgem opened the inaugural application window for the UK’s first long-duration energy storage subsidy scheme (an Ofgem-regulated programme to support investment in the rollout of long-duration electricity storage projects, through a cap and floor revenue support scheme, similar to the one used for electricity interconnector projects). Ofgem expects the first batch of projects to secure agreements in the second quarter of 2026, which would mark the first new LDES projects in 40 years. The UK’s energy system currently only has 2.8GW of long duration capacity across four separate pumped hydropower storage plants. DESNZ modelling estimated that the deployment of up to 20GW of LDES could result in up to £24 billion in electricity system savings, by enabling excess renewable generation to be saved for periods of high demand.
• Summit on the Future of Energy Security: In April, the UK Government, together with the International Energy Agency (IEA), hosted the first global Summit on the Future of Energy Security, convening government officials from over 60 countries. At the Summit, the Government established a new mission focused on strengthening global supply chains through the UK-led Global Clean Power Alliance (GCPA), alongside the launch of the first-ever Onshore Wind Strategy. The Strategy sets out 40 actions to boost onshore wind deployment across the UK, including: resolving issues with how onshore wind turbines and aerospace infrastructure co-exist; repowering existing turbines; and exploring plans to expand the clean industry bonus for onshore wind (which currently applies to offshore wind developers).
• Great British Energy Bill: The Great British Energy (GBE) Bill received legislative consent from in May 2025 – the first Bill to do so under this Parliament. A £10 million partnership with metro mayors was announced in March as part of plans to back local energy projects across the UK. Each strategic mayoral authority in England will be invited to apply for a share of the funding.
• Liverpool Bay carbon capture project: Eni Energy confirmed that it reached financial agreement with the UK Government to begin construction at the Liverpool Bay carbon capture and storage (CCS) site, part of the HyNet Industrial Cluster – one of the first two CCS clusters which have been allocated £21.7 billion in funding to be invested over the next 25 years. The Liverpool Bay site is expected to be operational in 2028, and is projected to create 2,000 skilled jobs.
• Geoengineering trials: The Advanced Research and Invention Agency (Aria) has announced a series of small-scale outdoor geoengineering experiments in climate cooling, as part of a £56.8 million Government-backed programme. The first outdoor experiments are expected to begin in early 2026.
• Grid connections reform: In April, the UK’s energy regulator, Ofgem, published a suite of decisions on grid connections reforms (known as the TMO4+ reform package), in line with the National Energy System Operator (NESO)’s plan drafted in partnership with the energy industry. Under these decisions, Ofgem is committing to making changes to the regulatory framework, so that “ready” and “needed” grid connections projects can be better prioritised, helping fast track strategic projects which may have been held up in grid connection queues, which have grown tenfold over the last five years. Grid connection delays are one of the most significant challenges facing projects, making efforts to reform the current grid application process and accelerate approval timelines all the more critical to improving access to energy and connectivity for projects that deliver much-needed upgrades and growth to the UK’s power system.
• Heat pump salary sacrifice proposals: In May, it was reported that UK Energy Secretary, Ed Miliband, is considering proposals to introduce a salary sacrifice scheme for employees to pay back the cost of purchasing and installing a heat pump. The scheme would compare with salary sacrifice schemes already in place, e.g. EV salary sacrifice schemes. In May, a coalition of over 30 industry leaders published an open letter urging the UK Government to extend the salary sacrifice scheme, promoting that it could result in around 230,000 home solar installations and 600,000 heat pump installations by 2030.
• Public Sector Decarbonisation Scheme funding: In May, DESNZ announced over £630 million in funding for energy upgrade measures including heat pumps, solar panels, insulation, and double glazing to help decarbonise public sector buildings. This funding for schools, community centres, and care homes is part of the total £940 million in funding for Phase 4 of the Public Sector Decarbonisation Scheme, which runs through the 2027/28 financial year. Decarbonising the public sector is projected to save on average an estimated £650 million per year to 2037.
• Clean Industry Bonus: In a May press release, the UK Government confirmed that it has more than doubled the funding for the Clean Industry Bonus, increasing the budget to £544 million following higher than expected demand from industry. The Bonus provides financial rewards to offshore wind developers on the condition that they prioritise investment in critical regions and/or in cleaner supply chains. Based on this announcement, the final budget allocation for the seventh round of the Contracts of Difference (CfD) scheme was confirmed.
• Zonal energy pricing debates: A July study commissioned by Octopus Energy reported that the switch to zonal pricing, so that prices are determined on a local rather than a national basis, could save billpayers up to £27 billion, by avoiding the need to develop costly new grid infrastructure. Elsewhere, there have been calls for the UK Government to forego adopting zonal pricing, as it could “create investment uncertainty and risk deterring vital private sector capital.” In May, the CEO of National Grid urged Energy Secretary, Ed Miliband, to reconsider policy proposals, stating that such a major reconstruction of the electricity market “should be postponed until the 2030s.” Miliband confirmed in July that the Government will not go ahead with zonal pricing, and instead will retain a single wholesale price, focusing on a “reformed system of national pricing”. The UK Government has confirmed that reforms will be spelled out in the Strategic Spatial Energy Plan, which is expected to be published by the National Energy System Operator (NESO) next year. This clarity on pricing comes ahead of the next Contracts for Difference (CfD) auction, which is expected start on 7 August – it had been argued that moving ahead with zonal pricing could undermine the CfD’s national pricing structure, requiring substantial reform that could delay investment in renewables. Maintenance of the current model has been presented as a way to preserve investor certainty and CfD operational efficiency during a critical transition period.
• UK gas storage facility risks: The Chief Executive of Centrica, the owner of the UK’s largest gas storage facility, warned in May that the facility will be shut down unless the Government steps in to support a £2 billion redevelopment. Centrica is calling for the UK Government to implement a “cap and floor” pricing mechanism at the Rough site, a revenue protection model used for interconnectors and other infrastructure projects. The storage facility, which currently provides six of the UK’s 12 days of gas storage, was previously closed in 2017, but partially reopened in October 2022 following Russia’s invasion of Ukraine.
• There was similar news from the UK’s largest bioethanol plant, which reported that it expected to stop production by mid-September 2025 “unless the Government acts,” following the recent trade deal with the US which will allow tariff-free US ethanol imports into the UK. The plant, also the UK’s largest single production site for animal feed, is described as a “key national strategic asset” which helps reduce emissions from petrol and is expected to be a key component to meeting the UK’s sustainable aviation fuel (SAF) mandate. In August, it was confirmed that the plant will be closing down operations, after the UK Government decided not to offer the sector a rescue package.
• Global offshore wind conference: In June, RenewableUK hosted the annual Global Offshore Wind conference in London, focusing on the actions needed to reach UK and global offshore wind deployment goals for 2030. At the conference, Energy Secretary, Ed Miliband, launched a £1 billion investment scheme to bolster job opportunities in the offshore wind supply chain, stating, “the forces that oppose net zero will have to reckon not just with the government. They will have to reckon with all these companies that are creating jobs.”
• New guidance on environmental impact assessments: In June, DESNZ launched new guidance on environmental impact assessments for oil and gas developers. Following the landmark Supreme Court ruling in Finch v Surrey County Council, the Government has laid out requirements for North Sea operators to consider the impact of burning extracted oil and gas (i.e. downstream Scope 3 emissions) in environmental impact assessments. Under these new requirements, offshore developers are now able to submit applications for consent to extract oil and gas at already-licensed fields – with the Government not expecting to take any decisions “until Autumn at the earliest.”

• Government consultations on sustainable reporting framework (SRS) and adoption of ISSB-aligned standards: At London Climate Action Week, Energy Secretary Ed Miliband announced three consultations:
  • A consultation on climate-related transition plan requirements, exploring proposals to mandate 1.5°C-aligned transition plans for UK-regulated financial institutions and FTSE 100 companies, with a possible extension to “economically significant” firms. In particular, the Government is seeking input on the role of transition plans alongside the UK’s forthcoming ISSB-aligned Sustainability Reporting Standards (SRS). The consultation thus focuses on the benefits and use cases of transition plans and industry perspectives on whether a mandatory versus a ‘comply or explain’ approach should be implemented.
  • A consultation on exposure drafts of UK sustainability reporting standards (UK SRS S1 and S2), which are based on the International Sustainability Standards Board’s (ISSB) IFRS S1 and IFRS S2, focusing on wider sustainability-related financial information disclosure requirements (UK SRS S1) and climate-related reporting disclosure requirements (UK SRS S2). The UK SRS prioritise international comparability with international reporting standards, with six proposed amendments to ISSB standards. Once the process for UK endorsement of the standards is “sufficiently advanced” in 2025, the Financial Conduct Authority (FCA) intends to consult on amending its listing and disclosure rules to move from TCFD recommendations to UK SRS for UK-listed companies. The ISSB’s IFRS S2 standard is explicitly built upon the TCFD framework – embedding the same four pillars of governance, strategy, risk management, and metrics & targets – while extending them with additional requirements. Thus, implementing UK SRS (also based closely on IFRS S2) means that UK businesses “already reporting under TCFD or UK Climate-related Financial Disclosure Regulations will be well-positioned for the transition.”
  • A consultation on assurance of sustainability reporting, with the UK Government proposing to introduce a voluntary registration regime for ‘sustainability assurance providers’, to be operated by the Audit, Reporting and Governance Authority (ARGA). This category of ‘sustainability assurance providers’ represents a new legal concept, recognising registered firms as capable of providing assurance over a range of reporting requirements across the European Sustainability Reporting Standards (ESRS) and the ISSB or aligned regional variants. This includes both the newly proposed UK SRS S1 and S2, and the TCFD framework. The consultation sets out that reforms to assurance regulation would align with UK SRS, helping to ensure consistency with international best practice and create a more trusted UK assurance market. This may enable more reliable, assurance-backed ESG data, improving the quality of information available to inform investment decision-making. You can read more about these consultations in our Sustainability Reporting Landscape Update.
• Together, these consultations look to determine how to take forward the recommendations set out in the 2024 Transition Finance Market Review, in line with the UK Government’s existing commitment to reduce regulatory compliance costs by 25%. To read more about the Transition Finance Market Review's relevance for boards, see our report with the City of London: Transition Finance: A Strategic Imperative for Boards - Chapter Zero
• Updated GRI Standards: In June, the Global Reporting Initiative (GRI) launched revised versions of its climate change and energy standards, “for companies to take into account their wider social impacts and provide better alignment with other frameworks.” The main changes to GRI 102: Climate Change include the incorporation of just transition principles, integration of disclosures for transition plans and climate change adaptation plans, and a new section on carbon credits. GRI claims that the updated standard is aligned with the Science-based Targets Initiative (SBTi)’s current Corporate Net-Zero Standard, the International Sustainability Standards Board (ISSB)’s IFRS 2, and the Greenhouse Gas (GHG) Protocol. In a joint statement, the GRI and ISSB have said that companies can use both standards to meet their reporting needs, meaning that just one set of emissions disclosures is needed to meet both standards. GRI has also launched GRI 103: Energy to supersede GRI 302: Energy (2016), which includes disclosures on energy efficiency and transitioning to renewables. These new standards come into effect in January 2027, with a pilot programme expected before the end of 2025.
• SBTi Corporate Net-Zero Standard: As part of the next phase of its revision period, SBTi has called on companies to pilot test the draft Corporate Net-Zero Standard V2. More information and timelines for the pilot, which is open to businesses of all sizes and locations, is available here. Initial responses to the revision have highlighted divergence between SBTi and the EU’s Corporate Sustainability Reporting Directive (CSRD) company classifications, which “represents a missed opportunity to harmonise definitions across the two reporting frameworks.” A second round of public consultation on the draft is “expected imminently, before the final updated standard is released in early 2026.”
• Finance industry transition plans: An April report from Reclaim Finance, Bank transition plans: a roadmap to nowhere, has analysed that none of the top 20 banks in the UK or Europe currently have credible, Paris-aligned climate transition plans. Analysis across the five themes of decarbonisation, engagement, reporting and governance, just transition, and biodiversity, shows that UK banks are underperforming on climate action in comparison to those in Europe. The report calls for greater preservation of transition planning rules, and argues against any weakening of requirements under the proposed EU Omnibus programme.
• EU Omnibus ‘Simplification’ Package Update: In July, over 80 investors and financial institutions signed a letter in support of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) as “essential for achieving the EU’s wider sustainability, growth and competitiveness ambitions”, urging policymakers to preserve the integrity of the EU’s sustainability reporting framework and its mechanisms. The European Parliament is not set to vote on the proposals regarding changes to CSRD, CSDDD, EU carbon border adjustment mechanism (CBAM), and the EU Taxonomy until October 2025.
• Pension industry transition plans: The Pensions Regulator (TPR) announced in July that it will work with industry stakeholders and professional bodies to develop and test a voluntary new zero transition plan template fit for occupation pension schemes. The TPR has said that the working group’s ultimate template will be based on the UK Transition Plan Taskforce (TPT)’s framework, helping to industry to prepare in advance of any legislation coming into effect.
• FCA’s SDR labelling for portfolio managers: In May, the Financial Conduct Authority (FCA) confirmed that plans to extend its Sustainable Disclosure Requirements (SDR) labelling regime to portfolio managers would be dropped following industry consultation. The FCA’s SDR labelling regime came into effect in May 2024, requiring asset managers that have funds with specific environmental or social aims to apply FCA-approved investment labels and adhere to anti-greenwashing rules. An April 2025 Investment Association survey of 50 asset managers found that 80% of firms believe the SDR has reduced misleading claims. While plans to extend the rules to portfolio managers are not going ahead at this current time, the FCA has confirmed that it will now focus on its multi-firm review into model portfolio services, particularly in terms of how firms are applying Consumer Duty.
• UK SME Emissions Standard: In June, Bankers for Net Zero (B4NZ) and the Broadway Initiative launched the new UK SME Voluntary Emissions Standard through the SME Sustainability Data Taskforce. Outlined in their report, ‘From Burden to Benefit: Streamlining SME Data Sharing to unlock Green Finance and Economic Incentives’, the Standard is built around a “create once, share many” model, enabling SMEs to share first-hand emissions data in a format that is compatible across both financial and procurement processes. Developed using input from over 50 organisations, the Standard aligns with existing frameworks including the Government’s PPN 006: Taking account of Carbon Reduction Plans.
• UK Green Taxonomy: As stated in the Chancellor’s July Mansion House speech, the Government has published an official response to its 2024 UK Green Taxonomy consultation, confirming that it will not proceed with plans to create a domestic green taxonomy, as it “would not be the most effective tool to deliver the green transition and should not be part of our sustainable finance framework.” The Taxonomy, as seen in the EU’s taxonomy for sustainable activities, was proposed to define which kinds of financing and economic activity can be classified as environmentally sustainable, with the aim of helping to prevent greenwashing. HM Treasury has confirmed that, in place of pursuing the UK Taxonomy, it will move forward with focus on efforts that “will have the greatest impact” – identifying the UK Sustainability Reporting Standards (SRS) and the FCA’s Sustainability Disclosure Requirements (SDR) and fund labelling regime as two such priority policies.
• Extended Producer Responsibility (EPR) regulations: In June, PackUK published a policy statement setting out new regulations on modulating household packaging waste disposal fees from 2026-2029. EPR regulations apply to all UK organisations that import or supply packaging, and this statement supports their implementation, providing clarity on how household packaging fees will be adjusted for obligated producers.
• Change to IASSB standards: The International Auditing and Assurance Standards Board (IAASB) confirmed in May that it will retire its greenhouse gas assurance standard (ISAE 3410), as it introduces the International Standard on Sustainability Assurance (ISSA) 5000. Coming into effect 15 December 2026, the new sustainability assurance framework covers all types of sustainability information, including GHG emissions, and is compatible with reporting regimes including the EU’s CSRD.

• Climate research framework: The Government published a Climate Adaptation Research and Innovation Framework in April, setting out a “new approach” to addressing the UK’s research and innovation (R&I) priorities, covering 11 of the UK’s key sectors, presenting new opportunities for cross-sectoral collaboration.
• Small Business Strategy: Following an open call for evidence, the Business and Trade Committee published Backing your business: our plan for small and medium sized businesses, setting out its strategy for long-term government support of UK SMEs. A summary of the Strategy’s announcements can be found here. One of the key initiatives includes the commitment to deliver a revamped web version of the Business Growth Service (BGS), a resource designed to streamline Government advice and support for SMEs. In line with recommendations from the Enterprise Research Centre, the updated version of the BGS was launched on 31 July.
• Climate Finance Fund Bill: The Climate Finance Fund (Fossil Fuels and Pollution) Bill, which would require the Secretary of State to publish proposals for a Climate Finance Fund – to be funded by new levies on fossil fuel companies, polluting industries, and high-emission luxury activities – entered its Second Reading stage in July. Originally introduced in October 2024 as a private member’s motion, the trajectory for the Bill to become law remains uncertain.
• Food industry warning to investors: In April, a network of senior insiders from the UK’s food sector, known as Track x Food, issued a memo with a stark warning: the UK food industry has “reached a moment of threat to food security like none other we have seen”, and, according to this group, is on course for a series of supply chain sourcing collapses, food shortages, and business failures. Track x Food, which represents companies behind over half of the UK’s grocery sales, says these risks should “wake-up call” for ministers and companies, as well as to investors, who must do more to understand the resilience and disaster preparedness of the companies they own.
• Increased British Business Bank spending: As part of the June Spending Review, the UK Government’s economic development bank, the British Business Bank, saw an increase in its total financial capacity to £25.6 billion, enabling a two-thirds increase in investments to around £2.5 billion each year. A new £4 billion initiative, the British Business Bank Industrial Strategy Growth Capital, has also been announced to deliver around £16 billion of capital to invest in smaller businesses over the next four years. This goes together with a commitment to invest £2.6 billion of capital to support UK entrepreneurs, and to launch two new Nations and Regions Investment Funds to address finance gaps and support innovation clusters. The Bank’s core programmes currently support close to 64,000 small businesses, including through the British Business Bank Finance Hub.
• National Wealth Fund statement: In June, the UK’s National Wealth Fund (NWF), which was established in October 2024, published a statement of intent, entitled Financing the Future. In it, the NWF commits to developing “a long-term strategic plan in response to the Chancellor’s Statement of Strategic Priorities” – with this statement of intent representing the starting point.

• In September, the Transition Finance Council published draft voluntary guidelines for consultation to improve the assessment of transition finance. These guidelines are intended to help lenders assess whether carbon-intensive companies in areas like cement, shipping and transport are making progress towards reducing emissions, with the aim of publishing a final version in 2026.
• UK Climate Finance Plan: In July, UK Foreign Secretary David Lammy announced a £12 million funding package in disaster risk finance, to enable more rapid responses to climate shocks in vulnerable countries. “Backed by the UK’s private financial sector,” Lammy positioned the initiative as “part of a broader strategy to position the UK as a global hub for sustainable finance.” This funding announcement follows the UK’s launch of a new coalition of governments, finance institutions and investors at the Fourth International Conference on Financing for Development (FFD4), committed to working together to scale up the use of pre-arranged disaster risk finance. In her speech at FFD4, UK Minister for Development, RT Hon Baroness Chapman of Darlington, stated that the UK will be the first country to report and publish its annual pre-arranged finance figures.
• BII climate finance record: A June report from British International Investment (BII), the UK’s development finance institution, finds that BII committed more than $2 billion over the last three years to climate finance. As the Government’s primary vehicle for delivering climate finance to countries most vulnerable to climate change, in 2024, BII invested a total of £708 million in climate finance, representing 41% of its overall investment commitments for the year. BII’s climate finance assets now make up over 26% of its entire portfolio, an increase from 15% in 2020.
• Bank of England climate-related supervisory proposals: The Bank of England (BoE)’s Prudential Regulatory Authority (PRA) has issued new proposals (CP10/25) to reinforce its climate-related supervisory expectations for banks and insurers, as a means through which to better encourage firms to integrate climate risks into decision-making processes to reduce future losses. The PRA has noted that “Current metrics often do not directly quantify climate-related financial risks and, therefore, do not allow insurers to measure and monitor their climate exposures against risk appetite.” Key updates in the proposals include: enhanced scenario analysis, more robust controls on data governance, and expectations of clearer climate risk appetite statements from firms. The PRA has confirmed that these proposed expectations will remain “proportional to firms’ exposure levels”, and firms will need to assess their unique exposure to climate risks and act accordingly.
• OBR net zero transition costs: In its July Fiscal risks and sustainability report, the Office for Budget Responsibility (OBR), sets out strong evidence that that “the cost of cutting emissions to net-zero is significantly smaller than the economic damages of failing to act.” Referencing the CCC’s estimates on the cost of reaching net zero, the OBR highlights that these estimates are “significantly lower” than the UK Government previously expected (9% of GDP lower), and that the cost of Government investment in emissions abatement is “both temporary and relatively small in comparison to climate damages.” Without increased action to reduce emissions, the OBR finds that the UK’s national debt could soar to 270% of GDP by 2070.”
• Pensions’ net zero investment: In May, the Phoenix Group, one of the UK’s largest pension funds, launched a policy white paper, Unlocking investment to support the Net Zero transition, setting out a number of non-fiscal reforms of the Office for Investment and the National Wealth Fund to expand their remit to unlock capital and link investors to regional projects. Analysis shows that UK pension funds could quadruple their investment in UK climate solutions to up to £1.2 trillion, with the Head of Climate Change and Nature at the Phoenix Group, Bruno Gardner, explaining, “The long-term savings industry is ideally suited to support the UK’s transition to net zero and greater energy resilience and to build more sustainable infrastructure. The long-term nature of our investments mean that our industry could contribute up to 50% of the investment required.”
• CAN-UK climate finance letter: In May 2025, in the lead up to the June Spending Review, 82 UK organisations as part of Climate Action Network UK (CAN-UK), wrote a public letter to Prime Minister Sir Keir Starmer, calling on him to set forth an ambitious fourth round of UK international climate finance (ICF4) and introduce measures to generate new public finance to support this ambition, through fairly taxing the wealthiest and largest polluters.
• Banks’ fossil fuel financing: The Leave it in the Ground Initiative has published research, UK Overseas Carbon Bombs, which finds that UK-based fossil fuel companies and banks are involved in at least 117 ‘Carbon Bomb projects’ across 28 countries, with UK banks having invested more than £75 billion into companies developing ‘carbon bombs’. A ‘carbon bomb’ is defined as a fossil fuel extraction project that will generate more than one gigatonne of CO₂ emissions (1 GtCO₂) globally over its remaining lifetime. Together, the emissions from these active and planned projects represent more than 420 gigatonnes in potential CO₂ emissions, equivalent to more than 10 years of current global CO₂ emissions and a level which far exceeds the UK’s current carbon budget.
• Global Clean Power Finance Mission: In June, the UK and Brazil jointly set out the next steps for the Global Clean Power Alliance (GCPA) Finance Mission. Launched at the G20 summit in November 2024, the Mission’s purpose is to scale-up clean energy investments in emerging economies in line with the Global Stocktake (GST) goals of tripling renewable energy capacity and doubling energy efficiency globally by 2030.

• VCMI framework: In April, the Voluntary Carbon Markets Initiative (VCMI) unveiled the Scope 3 Action Code of Practice, outlining guidance on corporate usage of carbon credits to assist with Scope 3 emissions reductions targets. The Code established a dual approach to working on direct emissions reductions while also using high-quality carbon credits to address unabated Scope 3 emissions. VCMI has published additional resources including a Carbon Budget Example and an Action Challenge Pledge Statement for businesses to utilise in applying the Code.
• Voluntary carbon and nature markets: DESNZ launched a consultation on the implementation of the UK government’s principles for voluntary carbon and nature market integrity, which were announced at COP29. The consultation closed on 10 July 2025.
• UK ETS pricing: The UK’s independent watchdog, the National Audit Office (NAO), issued a report in June warning that the UK emissions trading scheme (ETS)’s effectiveness at bringing down emissions “risks being undermined” by relatively low carbon pricing. The price of carbon within UK ETS has decreased since 2023, and remains lower than the EU equivalent. June research from the International Emissions Trading Association (IETA) highlights the increased proliferation of ETSs, with 38 in force globally, reinforcing the importance of ensuring that the UK ETS is resilient to changes in carbon pricing and fit to fulfil the Government’s ambitions to expand the Scheme.
• UK-Singapore-Kenya Coalition: In July, it was announced that the UK has formed a coalition with the governments of Kenya and Singapore, the Coalition to Grow Carbon Markets, a first-of-a-kind government-led initiative aimed at strengthening voluntary demand for carbon credits and restoring trust in carbon markets. The group is set to present its shared principles on the voluntary use of high-integrity carbon credits by businesses at COP30, with a preliminary version expected prior to the November conference. The Coalition has outlined commitments to working closely with businesses on the development of these principles.

• Transport investment records: As part of its ‘Plan for Change’, in July, the UK government announced a record £92 billion investment in over 50 major road and rail upgrades across England and Wales, representing “the largest transport infrastructure commitment in a generation.” John Foster, Chief Policy and Campaigns Officer, CBI said upgrades to transport infrastructure and improvements in transport connectivity are “key to unlocking the productivity gains needed to deliver sustainable growth.”
• EV charger milestone: According to a May 2025 report from Octopus Energy, the UK marked a major milestone of 100,000 public EV charge points, bringing the UK closer to the Government’s goal of 300,000 charge points by 2030. This milestone comes as the Society of Motor Manufacturers and Traders (SMMT) reported that, in June, one in four new car sales in the UK were electric, with demand up 39% for zero emission models.
• Solar car parks: In May, the UK Government published an open call for evidence on a proposal to mandate the installation of solar canopies at outdoor car parks, as well as views around current planning policy relating to EV charging infrastructure. The call for evidence ran until 18 June. The Government stated its view that solar car parks offer a “better deal for motorists”, both from cheaper charging costs and more transparent prices at the pump, through initiatives including the Competition Market Authority (CMA)’s Fuel Finder Scheme. Preliminary estimates suggest that installing solar carports at an 80-space car park could save around £28,000 per year in electricity bills.
• SBTi Automotive Sector Standard: In June, SBTi launched a consultation on a draft of its Automotive Sector Net-Zero Standard. Building on SBTi’s Land Transport Guidance published in March 2024, the Standard includes updated sector-specific criteria for emissions reductions across all operational and supply chain areas (scopes 1-3). The consultation closed in August, and SBTi is now inviting businesses to participate in a pilot testing of the draft Standard. Interested companies have been asked to complete the application form by 12 September 2025.

• ICJ Advisory Opinion: The International Court of Justice (ICJ) issued its advisory opinion on Obligations of States in respect of Climate Change on 23 July. The opinion explains what actions governments must take in relation to climate change in order to meet their obligations under international law. While not legally binding, the opinion is expected to be used in climate change-driven litigation around the world, which may influence the development of international law in this area, and inform government climate policy in the UK and beyond. Analysis of how the ICJ’s opinion could reshape corporate climate risk is provided by the Centre for Climate Engagement.
• Legal opinion on transition planning: A new legal opinion published in June offers “much-needed clarity on liability for transition plan disclosures, helping to alleviate concerns that corporate transition plan disclosure increases legal liability. The opinion finds that a regulatory requirement for companies to disclose a transition plan is “not likely to result in materially heightened liability risk for companies or their directors”, rather, it presents a pathway through which organisations can better mitigate legal risks.
• Council of Europe Environment Strategy: In May, the Council of Europe unveiled its new Strategy on the Environment 2025-2030, which aims to better integrate human rights into environmental policies. A major component of this strategy is the introduction of the new Convention on the Protection of the Environment through Criminal Law. As one of the 46 state parties of the Council of Europe, this new international legally-binding instrument provides the UK with a framework for addressing serious environmental crimes, which if ratified Member States must implement into national laws. The Convention includes provisions on corporate liability – through a “smart mix of voluntary and binding measures” – a comprehensive definition of the environment, and a monitoring mechanism to ensure accountability. More information on the Convention can be found in its Explanatory Report.

• Planning and Infrastructure Bill: The Ministry for Housing, Communities & Local Communities (MHCLG) confirmed that the Planning and Infrastructure Bill cleared its second reading in the House of Commons on 25 June and now progresses to the House of Lords. A number of amendments were made during the Commons stage including measures to reform queues for grid connections, shifting from a “first come, first served” to a “first ready and needed, first connected” approach, as well as improvements to the proposed Nature Restoration Fund. More details on measures are available in MHCLG’s new Guide to the Planning and Infrastructure Bill.
• UKGBC UK Climate Resilience Roadmap: In June, the UK’S Green Building Council (UKGBC) launched the UK Climate Resilience Roadmap, the first guidance of its kind to detail how the UK’s built environment will be impacted by climate hazards. The roadmap identifies 13 of the most vulnerable areas across the UK, calling on the Government to “treat climate resilience as a national emergency.” The UK currently lacks defined targets and/or standards for resilience at the national, local, and sectoral levels – which presents significant, industry-wide barriers to progress as outlined by the National Infrastructure Commission (NIC).
• UK Resilience Action Plan: The UK Government published a new Resilience Action Plan in July. Building on the 2022 Resilience Framework, the Action Plan acknowledges systemic failures in preparedness and coordination, calling for risk-based investment in infrastructure to better protect critical national infrastructure (CNI). Identifying climate change as a key driver of future chronic risk, the Plan calls for a resilience system that is more strongly based on the traditional business-wide concept of three lines of defence: incorporate self-assurance, assurance by system leaders, and internal audit. In its recommendations, the Government takes the position that it “must maintain responsibility for the delivery of [the UK’s] response plans and preparation and cannot outsource this role to an external body.”
• Proposals for solar power on new-build homes: It was reported in May that the UK Government is considering proposals to require all new homes to be fitted with solar panels by 2027. This move would require new homes to offset 40% of their carbon footprint with solar panel coverage. Whether or not this requirement enters legislation is set to be confirmed in the Government’s Future Homes Standard, which is expected this Autumn. Related debates, including around the May 2025 Planning Reform Working Paper: Reforming Site Thresholds, are also set to be spelled out in more detail in the forthcoming Standard.
• Biodiversity Net Gain: Defra ran two consultations on Biodiversity Net Gain (BNG) until the end of July 2025.
  • BNG for Nationally Significant Infrastructure Projects (NSIPs), on how BNG should be applied to major developments such as roads, rail, power station, reservoirs and airports.
  • BNG for minor, medium and brownfield development on how to improve the implementation of BNG requirements, particularly to be more practical and proportionate for smaller-scale projects.

In  reaction to the consultations, green leaders have voiced concerns around easing the BNG mandate for new developments.

• National Housing Bank: In June, MHCLG and HM Treasury announced the creation of a new government-backed National Housing Bank, a subsidiary of Homes England, backed by £16 billion in order to provide low-interest loans and accelerate new housing schemes to deliver 500,000 new homes. The Bank is also expected to unlock £53 billion of additional private investment, “able to act as a consistent partner to the private sector.” This announcement follows analysis by Savills which estimates that roughly only 840,000 new homes will be built in the next five years, 42% short of the Government target of 1.5 million new homes.
• New national SUDs Standard: Defra has launched new non-statutory National Standards for Sustainable Drainage Systems (SUDs) in England. Building on the Government’s changes to the National Planning Policy Framework (NPPF) in December 2024, the new standards set out firmer rules around run-off volume and preserving water quality and biodiversity.

• The Green Finance Institute and the World Wildlife Fund released the report Business Investment in Nature: Supporting UK Economic Resilience and Growth in August, highlighting the potential costs of climate and nature inaction, stating that “chronic climate and nature degradation in the UK alone could reduce GDP by 4.7% within this decade” and identifying climate- and nature-positive approaches as a key driver of resilience, alongside opportunities for “technological innovation and economic growth.”
• Corry Review: Defra welcomed the completion of the Corry Review in April, an independent report examining whether its regulatory landscape is fit for purpose to deliver economic growth while ensuring environmental protection. The review finds that Defra’s regulatory system “is not working as well as it should to support either nature recovery or economic growth,” setting out 29 recommendations for reforms to improve the design and implementation of regulation. A key recommendation is to unlock the flow of private sector green finance, by setting up a nature market accelerator body to incentivise investment. In terms of next steps, Natural England has committed to working closely with Defra on how to progress with recommendations.   
• TNFD nature case studies: The Taskforce on Nature-related Disclosures (TNFD) and the Global Reporting Initiative (GRI) have published a series of case studies, Identifying risks and opportunities to organizations arising from dependencies and impacts on nature, presenting practical examples of how companies are identifying nature-related dependencies, impacts, risks, and opportunities. The examples pull from seven major companies, highlighting emerging practices in nature-related materiality assessment. These case studies sit alongside other resources including the GRI-TNFD Interoperability Mapping Tool, which provides guidance on aligning with the TNFD Recommendations, assisting TNFD adopters in their sustainability reporting according to GRI Standards.
• Climate and Nature Bill: Debate on the Climate and Nature (CAN) Bill, which was introduced in the House of Commons in October 2024, is continuing as of 11 July 2025. The Bill looks to set new legally binding targets for climate and nature and place a duty on the Secretary of State to implement a strategy to achieve these targets. The Second Reading debate of the Bill was adjourned to the 11 July. MP Dr Roz Savage MBE has said, “it now sits too far down the parliamentary order paper to stand a realistic chance this session.”
• Nature organisations’ response to Planning and Infrastructure Bill: In a joint letter in April, heads of over 30 charities issued a warning on the Government’s new planning laws under the Planning and Infrastructure Bill. The signatories argue that the Bill’s focus on streamlining decision-making processes “falls short of delivering both nature recovery and responsible development for communities,” posing the risk that developers effectively disregard environmental rules and local concerns. A YouGov poll commissioned by the groups found that 71% of the public would support increased planning protections for green and blue spaces.
• BSI Nature Markets Standard: In March, the Government launched a British Standards Institute (BSI) standard for overarching principles for nature markets: BSI Flex 701. The aim of these green finance standard principles is to “set the bar for nature investments,” prevent greenwashing, and help business invest in nature restoration. BSI Flex 701 is immediately available for use. Its introduction comes as Defra announced a consultation on its Natural Carbon Standard, applying the principles set out in BSI Flex 701 to a new BSI standard for UK nature-based carbon projects.
• State of the UK’s Woods and Trees Report: The Woodland Trust’s June report, State of the UK's Woods and Trees 2025, finds that the quantity and diversity of UK wildlife continues to decline, despite more tree cover. In the past four years, just 45% of woodland creation targets have been made in the UK. The report claims that this continued decrease is due to the deteriorating ecological condition within UK woodlands.
• Nature & Investors Survey 2025: Responsible Investor’s Nature & Investors Survey 2025 was released in June, “painting a positive picture of progress”, but highlighting ongoing issues with data, lack of board-level representation, and gaps in regulation. One hundred asset owners and asset managers completed the survey, with 88% of respondents believing that investors can make a positive impact on nature and reduce biodiversity loss.
• Nature recovery and business: Defra launched an open call for evidence on expanding the role of the private sector in nature recovery in England, which ran from June to August. The call sought evidence and insights on how to support and incentivise business sectors to invest in nature recovery, which will support further policy development.