Commitment to Sustainability Disclosure
The UK government has unveiled plans for a voluntary registration regime for sustainability assurance providers as part of its Mansion House package aimed at modernizing the corporate reporting framework. This new initiative is designed to enhance the quality, consistency, and trust in sustainability assurance, addressing the current lack of formal accreditation in this area.
The proposed regime, overseen by the Audit, Reporting and Governance Authority (ARGA), will create a new legal category of "sustainability assurance providers" who are qualified to offer third-party assurance on sustainability-related financial disclosures. Both audit and non-audit professionals and firms, ranging from traditional auditors to sustainability consultancies, can register if they meet eligibility criteria set by the new UK regulatory body.
Key features of the proposed regime include a voluntary registration initially, with the possibility of moving to a mandatory regime later, a profession-agnostic approach, and oversight by ARGA, which will register providers, set registration criteria, monitor performance, and enforce standards proportionately. Assurance providers will be recognized for their capability to assure disclosures against various frameworks, including the UK Sustainability Reporting Standards (UK SRS), European Sustainability Reporting Standards (ESRS), and others aligned with international sustainability standards such as those from the ISSB.
Providers must adhere to UK equivalents of International Auditing and Assurance Standards Board’s ISSA 5000 (General Requirements for Sustainability Assurance Engagements) and will be subject to a proportionate enforcement mechanism. The regime aligns with the Corporate Sustainability Reporting Directive engagements and considers the interaction with existing audit rules and non-audit services fee caps.
The government is currently consulting on the detailed design of the registration regime, with feedback requested by mid-September 2025. Future decisions will determine the timeline and whether the regime becomes mandatory.
The voluntary registration regime is one of several initiatives announced by the UK government as part of its commitment to deliver a world-leading sustainable finance framework, as outlined in the Mansion House package. The package, announced in November 2024, includes establishing a world-leading sustainable finance framework, which is designed to be world-leading and aims to provide credible and decision-useful sustainability-related financial information to financial markets.
The Financial Reporting Council's market study in February 2025 highlighted a demand for stronger regulatory oversight of assurance providers, underlining the need for this new initiative. This consultation is also part of the government's work to strengthen audit and corporate governance, as announced in the King's Speech 2024.
In addition to the registration regime, the consultation is published alongside those on exposure draft UK Sustainability Reporting Standards (UK SRS) and the government's transition plan manifesto commitment. The sustainable finance framework, as part of the Mansion House package, is focused on delivering sustainability-related financial information to support companies in identifying appropriately qualified sustainability assurance providers and providing financial markets with decision-useful sustainability-related information.
This initiative represents a central step in the UK's drive to modernize corporate reporting, improve sustainability disclosures, and align with international and European sustainability standards frameworks.
The UK government's proposed voluntary registration regime for sustainability assurance providers is a key part of the Mansion House package aimed at modernizing the corporate reporting framework. This initiative, overseen by the Audit, Reporting and Governance Authority (ARGA), seeks to enhance trust and consistency in sustainability assurance, addressing the current lack of formal accreditation.
The new regime will create a legal category of "sustainability assurance providers," and both audit and non-audit professionals, such as traditional auditors and sustainability consultancies, can register if they meet eligibility criteria. This policy-and-legislation move aligns with international sustainability standards and is a significant step in the UK's general-news drive to improve sustainability disclosures and align with international and European standards.
