UK Sustainability Reporting Standards (UK SRS)

What is UK Sustainability Reporting Standards (UK SRS)

The UK Sustainability Reporting Standards (UK SRS) are a set of disclosure requirements issued by the UK Government to ensure consistent and comparable sustainability reporting by companies. Based on the International Sustainability Standards Board (ISSB) global baseline, these standards adapt IFRS S1 and S2 for the UK market to help investors assess sustainability-related risks and opportunities.

Key Features

• Global Alignment: Built on IFRS S1 and IFRS S2 to ensure international comparability and decision-useful data for investors.
• UK SRS S1: General requirements for disclosing all material information about sustainability-related risks and opportunities.
• UK SRS S2: Specific climate-related disclosure requirements, including mandatory Scope 1, 2, and 3 greenhouse gas emissions.
• TCFD Integration: Incorporates and enhances the Task Force on Climate-related Financial Disclosures (TCFD) framework.
• Regulatory Roadmap: Phased implementation starting with voluntary use in 2026 and proposed mandatory reporting for listed companies from 2027.

Use Cases

• Regulatory Compliance: Used by UK-listed companies to meet upcoming legal requirements for sustainability disclosures.
• Investment Decision Making: Provides standardized data for institutional investors to evaluate the sustainability performance of UK firms.
• Risk Management: Helps organizations identify and manage physical and transition risks associated with climate change.
• Supply Chain Reporting: Encourages transparency across value chains by requiring Scope 3 emission disclosures.

Frequently Asked Questions About UK Sustainability Reporting Standards (UK SRS)

Are the UK SRS standards mandatory?

As of February 2026, the standards are available for voluntary use. The UK government and Financial Conduct Authority (FCA) propose making reporting mandatory for listed companies starting January 1, 2027.

How do they differ from ISSB standards?

The UK SRS are based directly on IFRS S1 and S2 but include minor amendments to ensure they are appropriate for the UK regulatory environment and legal context.

Who is initially in scope for these standards?

The initial focus is on approximately 500 UK-listed companies, with wider adoption for private companies subject to future government consultations.