The UK continues to play a key role in the global transition to Net Zero. As part of London Climate Action Week in June 2025 (the secretariat of which is also hosted by E3G), the Government released a consultation exploring how to introduce regulations requiring climate-related transition plans for all UK regulated financial institutions and large companies. The goal is to provide the market with consistent, credible and decision-useful information.
As part of our recent Business Outlook Tracker, we surveyed 603 senior decision makers in UK mid-sized businesses (defined as those with revenue between £50million - £1billion).
We sought to understand their current position regarding transition planning and whether they believe their businesses would benefit from implementing one.
Since June 2024, the TPT’s materials have been hosted by the IFRS Foundation, which also releases the International Sustainability Standards Board (ISSB) standards. These standards serve as the international baseline for corporate sustainability disclosures. According to IFRS S2 on Climate-related Disclosures, a climate transition plan is defined as “an aspect of an entity’s overall strategy that lays out the entity’s targets, actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions”. In June 2025, the IFRS Foundation also released new guidance for disclosures regarding transition plans.
Transition plans detail the steps the business will take to adapt their business model, operations, and products or services while also considering the emerging risks and opportunities in doing so.
Read more about transitions plans
Understanding the UK mid-market view of transition planning
Who has a transition plan?
Our survey found that only 15% of respondents have decided not to create a transition plan while 73% have already developed, are developing, or actively considering developing one. Although the UK Government doesn’t currently mandate adherence to TPT guidance, we believe that listed and larger private companies are likely to be the first to whom any transition planning regulations will apply.
We believe businesses must follow a strategic, rather than a compliance-led approach. Start by assessing how you can incorporate good practices from the TPT into your own sustainability strategy, sooner rather than later. This will enable you to articulate your sustainability ambitions, plan the necessary actions to achieve them and monitor and report on progress in a credible and transparent manner.
Insights from the survey
Respondents current position with regards to a climate-related transition plan
![Which of the statements most accurately reflects your company's current position with regards to a climate-related transition plan?]()
“Grant Thornton's insightful new survey provides evidence that UK mid-market businesses see the value of transition planning. Businesses are pushing forwards with transition plan development, regardless of whether they are likely to fall within regulatory requirements. Businesses are embracing transition planning not just because they have to, but because they see the benefits.”
Ben Gilbey, Technical Lead from International Transition Plan Network
It’s interesting to note that smaller companies were as vested in adopting transition plans as the larger players, reflecting a broader strategic shift in thinking. Although the level of detail may vary depending on company size, it is crucial for businesses of all sizes to develop credible transition plans to support an economy-wide transition to Net Zero.
Nearly one-third (33%) of companies in the £500 million to £1 billion revenue category have decided not to create a transition plan or have never heard of one. This is surprising, as companies of this scale are likely to fall under the Climate-related Financial Disclosures regulation if they meet specific employee-size thresholds. This regulation helps companies disclose climate-related risks and opportunities, which is a foundational element for creation of transition planning. This gap may reflect the survey respondents’ roles, for example, individuals outside finance and sustainability teams, but it also highlights the need for further education and upskilling within larger companies - not only on the value of transition plans, but also on wider sustainability issues, beyond a compliance lens.
Regional transition planning trends
The survey revealed regional disparities in the adoption of transition plans. Scotland had the highest combined percentage of companies that either have a transition plan or are developing one (50%), compared to England (45%) and Wales (41%). This may be influenced by the Scottish Government’s ambitious climate goals, including its target to reach Net Zero by 2045 - five years earlier than the UK-wide goal of 2050. The significant presence of oil and gas businesses in Scotland, many of which are on the frontline of transition, may also play a role.
Benefits of a transition plan
Respondents who already have, are developing, or are considering a transition plan were
asked about the perceived benefits.
Respondents generally view climate transition plans to have multiple benefits
![How significantly do you believe that the development of a climate-related transition plan would benefit/is benefitting your company across the following areas?]()
The results demonstrate that perceived benefits are multi-dimensional and vary depending on where companies are in their transition planning journey. Early-stage plans often focus on building stakeholder buy-in, while mature plans may have potential to lead to tangible outcomes, such as enabling access to finance, risk management and building trust with customers and clients.
Key takeaways from the survey
- Transition planning is gaining traction: companies of all sizes are taking transition planning seriously, though larger companies (who are more likely to fall within regulatory requirements) are possibly not as progressed in their thinking as expected.
- The benefits outweigh the drawbacks: businesses view transition plans as valuable tools for growth, resilience and stakeholder trust.
- A deeper understanding and clearer communication of the benefits of transition plans are needed: for both companies and their stakeholders - particularly in anticipation of potential legislation mandating such disclosures. A whole-economy-transition is essential: companies across sectors and regions must develop credible plans to achieve collective Net Zero goals.
What should you do next?
1. Provide feedback on consultations
To support the UK’s sustainable finance framework, the Government has recently announced three related consultations. They’re keen to hear directly from businesses of all sizes. Your input is important - consider providing your views on consultations, which will shape broader sustainability trends and requirements:
2. Prepare for new regulation
Upcoming legislation, expected as early as Summer 2026, is likely to impact specific sectors and larger businesses first. Stay informed about upcoming regulatory requirements, including the UK TPT disclosure framework, international ISSB standards. Conduct a gap analysis to understand how your current practices align and where adjustments are needed.
3. Embed transition planning into governance
Over time, climate transition planning should be integrated into your board-level discussions and risk management processes. Assign clear ownership and accountability across leadership teams. If your board isn’t yet informed of the risks, consider training and discovery sessions to bring stakeholders up to speed.
4. Develop scenario-based strategies
Use climate scenario analysis to test the resilience of your business model under differing transition pathways. This approach identifies strategic risks and opportunities while supporting longer term planning.
5. Engage your value chain
Collaborate with suppliers and partners to align on transition goals. This is particularly important for addressing Scope 3 emissions and building a resilient, low-carbon supply chain. From our work with clients, we know Scope 3 emissions are challenging but they hold the key to sustained delivery on carbon reduction.
6. Communicate transparently
Regularly update stakeholders—including investors, customers, and employees—on your transition journey. Transparency builds trust and can enhance your reputation and access to capital. You don’t need to be perfect from the outset, by “showing your working” you gain trust and demonstrate commitment.
To find out more about how we can help with your planning process, speak to Alasdair Grainger or Arti Bareja.
Empower your employees to drive sustainability
Equip your team with the skills and knowledge needed to create meaningful social and environmental impact within your organisation.
Grant Thornton and Teesside University offer sustainability training programmes, fully funded for participating businesses through the apprenticeship levy. These programmes empower employees to:
- develop and implement effective sustainability initiatives
- support your organisation’s sustainability strategy
- promote an ethical and inclusive approach to sustainability.
Take the next step in your sustainability journey
