The government’s intention to create ISSB-based UK Sustainability Disclosure Standards (UK SDS) includes requirements for companies to disclose their transition plans and report progress against them.

The rules will come into force for accounting periods from 1 January 2025 and the first reporting will begin in 2026.

The Transition Plan Taskforce (TPT) guidance states that a company’s transition plans should take a strategic approach that explains how it will meet climate targets, manage a climate-related risks and contribute to achieving net zero.

Key reporting will cover operational, financial and greenhouse gas (GHG) metrics and targets, and carbon credits.