As a knowledge partner for Chapter Zero, the Centre for Climate Engagement prepared a briefing to highlight the key developments in UK climate policy from the end of April to September 2025, with relevance for non-executive directors (NEDs).
Recent months have seen major steps in UK climate and economic policy, with the Chancellor’s Spending Review mobilising significant green investment. Regulators signalled the rollout of new UK Sustainability Reporting Standards, underpinned by International Sustainability Standards Board (ISSB) alignment, and reaffirmed commitments to corporate transition planning. London Climate Action Week highlighted the growing focus on nature-related disclosures and carbon markets, while HM Treasury’s Transition Finance Pilot aims to unlock up to £200bn for decarbonisation. Despite ongoing fiscal risks, the IMF has upgraded the UK’s growth outlook, underscoring the momentum behind a green recovery.
Briefing highlights:
- UK green growth and competitiveness: The UK Government is putting green growth at the centre of its economic strategy. In June, Chancellor Rachel Reeves announced a Spending Review allocating over £60 billion to climate and energy transition projects. This sends a clear message that the UK aims to be a leading destination for investment, with more support for businesses to innovate and grow as part of its Plan for Change. Research from the City of London Corporation and Bankers for Net Zero shows that more financial services firms are setting Paris-aligned climate targets, reinforcing the UK’s commitment to a competitive, net zero economy.
- Sustainability reporting reforms: The Government is also looking to modernise sustainability reporting rules. It has launched consultations on new climate transition plan requirements, sustainability reporting standards, and assurance processes. These changes could streamline reporting and make it easier for companies to align sustainability disclosures with business goals. Boards and non-executive directors (NEDs) are encouraged to prepare for possible changes now and take part in the consultations to ensure the new framework works for both governance and growth.
- Climate Change Committee findings: The Climate Change Committee (CCC), the UK’s official climate adviser, has warned that adaptation efforts are lagging. It found no significant progress towards 46 key outcomes needed for a climate-resilient UK. At the same time, there are signs of momentum in cutting emissions—now more than halfway to net zero. The CCC suggests the UK may be close to a “positive tipping point” for climate action, particularly due to clean tech adoption. This is a call for businesses to step up on both adaptation and emissions reduction, and to explore opportunities to be early leaders in emerging clean technologies.
- New Government strategies: In June, the Government unveiled several major strategies, including the Modern Industrial Strategy, 10-Year Infrastructure Strategy, National Security Strategy, and Trade Strategy. These highlight clean energy, professional and business services, and advanced manufacturing as priority growth sectors, aiming to build a long-term partnership between business and the state while embedding climate goals into economic planning.
About Chapter Zero:
The full briefing was published by Chapter Zero, a network for non-executive directors and chairs who are integrating climate action into business strategy. Chapter Zero is the UK chapter of the Climate Governance Initiative, developed with the World Economic Forum.
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