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ARTICLE · 24 JULY 2025

Mandatory Transition Planning – UK Government Progresses Their Manifesto Commitment

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The UK's sustainable finance regulatory framework has taken a major step forward with the launch of the transition plan consultation.

United KingdomCorporate/Commercial Law

The UK's sustainable finance regulatory framework has taken a major step forward with the launch of the transition plan consultation.

On 25 June 2025, the Government published three consultations seeking views on UK sustainability reporting in three core areas. The consultation on mandatory climate-related transition planning in the UK is one of the three consultations. For a summary of the three consultations, read our previous article, A trio of consultations: The UK government consults on sustainability reporting requirements and transition planning.

What is the transition plan consultation?

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" in their 2024 party manifesto and are now consulting on how best to take forward the policy.

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