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Financial Conduct Authority
Reference Guide · 2026 / 27Updated 30 May
UK Sustainability Reporting Standards | UK SRS
The definitive reference guide to UK Sustainability Reporting Standards (UK SRS S1 and S2) — the UK implementation of IFRS S1 and S2 S1 and S2.
Published by the Department for Business and Trade on 25 February 2026.
Mandatory for in-scope UK-listed companies from 1 January 2027.
Built for sustainability professionals, finance directors, and board members.
Quick read
9 min
Full guide
42 pages
Tools
11
Voluntary adoptionLive
25 Feb 2026
UK SRS S1 and S2 available for any UK entity to apply voluntarily.
DBT publication
S2 · Proposed mandatoryProposed
1 January 2027
S2 climate disclosures for in-scope listed companies (UKLR 6, 14, 15, 16, 22).
FCA CP26/5
Scope 3 · Comply-or-explainNext
1 January 2028
Year-2 transitional relief ends; Scope 3 emissions disclosure required.
CP26/5 §3.9, §8.6
In scope under CP26/5
UKLR 6/14/15/16/22
Listed issuers per FCA Cost Benefit Analysis (~500 entities, Annex 2)
Lead time
12-18months
Typical preparation for full compliance
Disclosure pillars
4core
Governance · Strategy · Risk · Metrics
Transition relief
2years
Climate-first implementation for Scope 3
UK SRS · Key facts
What are the UK Sustainability Reporting Standards (UK SRS)?
The UK Sustainability Reporting Standards (UK SRS)are the UK-endorsed version of the ISSB's global IFRS Sustainability Disclosure Standards. Published by the Department for Business and Trade on 25 February 2026, UK SRS comprises UK SRS S1 (general sustainability disclosures) and UK SRS S2 (climate-related disclosures), providing UK companies with one comparable baseline for reporting sustainability and climate risks that affect enterprise value. UK SRS forms the core of ESG reporting requirements UK.
New to UK SRS? Start with what is UK SRS, explore the UK SRS S1 and UK SRS S2 standards, review full UK SRS requirements, check who must comply with UK SRS, and understand ESG reporting requirements UK. For UK SRS implementation support, consider working with a specialist carbon compliance consultancy. Companies implementing UK SRS often benefit from GTM consultants to align their go-to-market strategy with ESG reporting requirements UK.
ESG Reporting Requirements UK: Navigate the Landscape
ESG Reporting Requirements UK
Complete guide to mandatory and voluntary ESG frameworks including SECR, UK SRS, ESOS
UK SRS Implementation
Detailed timeline and requirements for UK Sustainability Reporting Standards from 2027
Compliance Pathways
Understand which frameworks apply to your organisation based on size and listing status
What are UK sustainability reporting standards?
Sustainability reporting standards are frameworks that guide companies in disclosing environmental, social, and governance (ESG) information.
They provide structure for communicating with investors and stakeholders.
UK Sustainability Reporting Standards (UK SRS S1 & S2) are the UK's domestically adopted sustainability disclosure requirements.
They're based on IFRS S1 and S2 with six UK-specific amendments.
They differ from European standards (ESRS) by focusing on single materiality.
UK SRS applies to UK listed companies only.
UK Sustainability Reporting Standards
UK SRS S1 & S2 for approximately 500 listed companies from 2027
European Standards
ESRS (12 standards) under CSRD for EU companies post-Omnibus
Global Baseline
IFRS S1 & S2 by ISSB, adopted by 50+ jurisdictions worldwide
Understanding UK SRS and ESG Reporting Requirements UK
What is UK SRS and sustainability reporting?
A sustainability report under UK SRS is a comprehensive disclosure of an organisation's environmental, social and governance (ESG) performance. UK SRS requiresclimate-related disclosures covering risks, opportunities and impacts on enterprise value following ESG reporting requirements UK.
Who must comply with UK SRS and ESG reporting requirements UK?
From 2027, all UK listed companies must prepare a sustainability reportfollowing UK SRS standards. Large private companies already create a partialsustainability report under SECR requirements, focusing on energy and carbon metrics.
Building your sustainability report
Creating a compliant sustainability report requires 12-18 months of preparation. Companies need data systems, governance structures and assurance processes to deliver a credible sustainability report.
Orientation
UK SRS in ninety seconds
Four questions every sustainability lead should be able to answer.
CORE REQUIREMENTS
What companies must disclose under UK SRS
Climate-related financial disclosures
UK SRS S2 requires comprehensive climate risk and opportunity disclosure following TCFD four-pillar architecture
Scope 1, 2 and 3 emissions
Full GHG Protocol emissions reporting across all 15 Scope 3 categories with first-year transition relief
Scenario analysis
Climate scenario analysis including at least one Paris-aligned scenario below 2°C
Transition plan disclosure
Whether a transition plan exists, and if not, explanation of why not
Materiality assessment
Enterprise value materiality approach for identifying sustainability-related risks and opportunities
Connectivity with financial statements
Integrated reporting showing links between sustainability and financial performance
Disclosure framework
Explore the pillarsUK sustainability reporting standards framework
UK SRS inherits the TCFD architecture and extends it across all material sustainability topics through four disclosure pillars.
Energy Compliance
ESOS Phase 4: Part of ESG Reporting Requirements UK
Determine if your organisation must comply with ESOS Phase 4 energy audit requirements. Qualification is assessed on 31 December 2026 based on size thresholds.
UK SRS vs Other ESG Reporting Requirements UK
Your sustainability report must follow specific standards based on your company type. UK SRS provides the mandatory framework for UK listed companies under ESG reporting requirements UK, while voluntary UK SRS reporters can choose from multiple international standards.
| Framework | Best for | Focus areas | Assurance |
|---|---|---|---|
| UK SRS | UK listed companies | Climate + enterprise value | ISSA (UK) 5000 |
| GRI | Impact-focused sustainability report | Double materiality | ISAE 3000 |
| ISSB | International sustainability report | Investor needs | ISSA 5000 |
| TCFD | Climate-focused sustainability report | Climate risks | Limited assurance |
PRIMER
What is sustainability reporting?
Sustainability reporting is the disclosure of an organisation's environmental, social and governance performance alongside its financial accounts.
Where financial reporting describes how a company has performed economically, sustainability reporting describes its exposure to climate, social and governance risks — and the impact those risks have on its prospects.
Several international frameworks define what good sustainability reporting looks like. They differ chiefly on one question: whose interests does the report serve?
The ISSB's IFRS S1 and S2 — issued by the IFRS Foundation in June 2023 — focus on financial materiality: information investors need to price a company. The EU's ESRS, in contrast, uses double materiality: investor-relevant information and the company's impact on people and planet.
The UK Sustainability Reporting Standards (UK SRS) are the UK's adoption of the ISSB baseline. They sit within the broader UK ESG reporting landscape alongside SECR, ESOS and the existing Companies Act 2006 climate disclosure regime — the topic of the section above.
| Framework | Issuer | Materiality | UK relevance |
|---|---|---|---|
| ISSB — IFRS S1 & S2 | IFRS Foundation | Single (financial / enterprise value) materiality | UK SRS S1 and S2 (UK adoption with six UK-specific amendments) |
| ESRS (CSRD) | European Commission (drafted by EFRAG) | Double materiality (financial AND impact) | EU large companies and listed entities; UK groups via EU subsidiaries |
| GRI Standards | Global Reporting Initiative | Impact materiality (multi-stakeholder) | Voluntary worldwide; widely used for stakeholder reporting |
| TCFD (legacy) | Financial Stability Board | Climate only (single materiality) | Disbanded October 2023; framework continues through IFRS S2 |
| SASB | Now part of IFRS Foundation | Industry-specific metrics (single materiality) | Supports IFRS S2 / UK SRS S2 sector disclosures |
Sources: IFRS Foundation; EFRAG; Global Reporting Initiative; TCFD recommendations; SASB Standards.
UK SRS Sustainability Reporting Guidelines and ESG Framework
The UK's comprehensive UK SRS reporting guidelines establish a unified sustainability reporting framework through UK SRS S1 and S2, providing UK SRS reporting guidance for listed companies under ESG reporting requirements UK and forming the foundation for UK SRS sustainability disclosure standards from January 2027.
These UK sustainability reporting standards 2025-2026 build on IFRS S1 and S2 UK to create a sustainability reporting guide specifically for UK companies, with comprehensive coverage from disclosure requirements to implementation timelines.
- Sustainability reporting guidelines
- Comprehensive framework established by UK SRS S1 and S2 providing structured guidance for sustainability disclosures within UK corporate reporting architecture, including materiality assessment, pillar-based disclosure, and strategic report integration. See our detailed reporting guidance.
- Sustainability reporting framework
- The UK's unified approach to sustainability disclosure through UK SRS, integrating climate-related financial disclosures (S2) and general sustainability requirements (S1) within existing corporate reporting structures. Learn about sustainability reporting frameworks.
Hybrid approach: Many companies use software for ongoing measurement and expert consultancy for assurance readiness — combining control with expertise.
Implementation Tools
Carbon Reporting Software & Tools
Select the best carbon reporting software for UK SRS and ESG reporting requirements UK. Our independent assessment of 17 carbon reporting software platforms covers SECR alignment, UK SRS readiness, Scope 3 capabilities, and UK SRS assurance readiness. For energy audits under ESG reporting requirements UK, understandESOS meaning andESOS Phase 4 requirements.
Top Pick for UK SRS: Climatise
UK-first carbon reporting tools built specifically for SECR and UK SRS requirements. One dataset feeds all UK SRS and ESG reporting requirements UK.
View full comparison →Enterprise Options
Evaluate Watershed and Normative for enterprise-scale carbon emissions software with deep Scope 3 coverage.
Compare all platforms →Key Features
- DESNZ emissions factors
- SECR report formatting
- Scope 3 all 15 categories
- Audit trail for assurance
Our Pick
Recommended Implementation Approach
Based on analysis of successful UK SRS implementations, we recommend a phased approach starting with gap analysis, followed by data infrastructure development, pilot reporting, and assurance readiness.
Key strengths:
- Start with comprehensive gap analysis against UK SRS requirements
- Build Scope 3 data collection infrastructure early (12-18 month lead time)
- Establish board-level governance before mandatory reporting begins
- Engage assurance providers early for ISSA (UK) 5000 readiness
- Run pilot reporting cycles to identify and address issues
Reference index
Keep reading
This guide is the entry point. Continue into the specialist topic pages below.
Core Standards
Implementation
Specialist Topics
Regulatory Context
Questions & Answers
UK Sustainability Reporting Standards: FAQ
The essential answers on UK SRS S1 and S2 — what they are, who must comply, and when reporting becomes mandatory — followed by deeper questions from practitioners, investors and compliance teams.
What are the UK Sustainability Reporting Standards (UK SRS)?
The UK Sustainability Reporting Standards (UK SRS) are the UK-endorsed version of the ISSB's global IFRS Sustainability Disclosure Standards. They were published by the Department for Business and Trade (DBT) on 25 February 2026 and comprise two standards: UK SRS S1 (general sustainability-related financial disclosures) and UK SRS S2 (climate-related disclosures).
Together they give UK companies a single, comparable baseline for disclosing the sustainability and climate risks and opportunities that affect enterprise value.
Together they give UK companies a single, comparable baseline for disclosing the sustainability and climate risks and opportunities that affect enterprise value.
What is UK SRS S1?
UK SRS S1 sets the general requirements for disclosing material sustainability-related financial information — the risks and opportunities that could reasonably affect a company's cash flows, access to finance or cost of capital over the short, medium and long term.
It mirrors IFRS S1 and applies across all sustainability topics, not only climate.
It mirrors IFRS S1 and applies across all sustainability topics, not only climate.
What is UK SRS S2?
UK SRS S2 is the climate-specific standard. It requires disclosure of climate-related risks and opportunities, greenhouse-gas emissions across Scopes 1, 2 and 3, scenario analysis and transition-plan information, following the four-pillar TCFD architecture of governance, strategy, risk management, and metrics and targets.
It mirrors IFRS S2.
It mirrors IFRS S2.
Are the UK Sustainability Reporting Standards mandatory?
Not yet. The finalised UK SRS S1 and S2 are currently available for voluntary use by any entity.
The Financial Conduct Authority (FCA), in CP26/5, has consulted on making climate and sustainability disclosures mandatory for UK-listed companies, and the Government is considering extending mandatory reporting to large companies through the Companies Act. A final FCA policy statement is expected in autumn 2026.
The Financial Conduct Authority (FCA), in CP26/5, has consulted on making climate and sustainability disclosures mandatory for UK-listed companies, and the Government is considering extending mandatory reporting to large companies through the Companies Act. A final FCA policy statement is expected in autumn 2026.
When do UK SRS become mandatory, and what is the deadline?
Under the FCA's CP26/5 proposals, mandatory reporting would apply to in-scope UK-listed companies (UK Listing Rules categories 6, 14, 15, 16 and 22) for accounting periods beginning on or after 1 January 2027, with the first reports published in 2028.
Scope 3 emissions and certain UK SRS S1 reliefs phase in after the first reporting year.
Scope 3 emissions and certain UK SRS S1 reliefs phase in after the first reporting year.
Who must comply with UK SRS?
During the voluntary phase, any UK entity may apply UK SRS.
Once the FCA finalises its rules, in-scope UK-listed companies would report mandatorily from 1 January 2027. Large private companies are expected to follow later via the Companies Act and the Government's Modernising Corporate Reporting programme. Many large companies are already subject to related regimes such as SECR and TCFD-aligned disclosures.
Once the FCA finalises its rules, in-scope UK-listed companies would report mandatorily from 1 January 2027. Large private companies are expected to follow later via the Companies Act and the Government's Modernising Corporate Reporting programme. Many large companies are already subject to related regimes such as SECR and TCFD-aligned disclosures.
How do UK SRS differ from the ISSB's IFRS S1 and S2 standards?
UK SRS are based directly on IFRS S1 and S2 but make six minor UK-specific amendments — including adjustments to the effective dates and to certain transition reliefs — so the standards fit UK law and the listing rules.
The technical content otherwise stays aligned with the global ISSB baseline to preserve international comparability.
The technical content otherwise stays aligned with the global ISSB baseline to preserve international comparability.
How does UK SRS fit within the Government's broader sustainability policy?
UK SRS sits within the broader UK SDR (Sustainability Disclosure Requirements) framework, which includes FCA SDR investment product labels, transition plan requirements under separate consultation, and ISSA (UK) 5000 assurance standard 2.
The approach supports the Leeds Reforms package aimed at strengthening the UK's position as a global financial centre 1.
The approach supports the Leeds Reforms package aimed at strengthening the UK's position as a global financial centre 1.
How many countries globally are adopting ISSB standards?
37 jurisdictions have decided to use or are taking steps to introduce ISSB Standards as of September 2025, per the IFRS Foundation's authoritative tracker 8.
This covers approximately 60% of global market capitalisation, 60% of global GDP, and over 40% of global greenhouse gas emissions.
This covers approximately 60% of global market capitalisation, 60% of global GDP, and over 40% of global greenhouse gas emissions.
What do investors think about the UK's Scope 3 and S1 carve-outs?
The PRI (representing $128tn AUM) has expressed concerns that these provisions "risk limiting investors' access to material information" and depart from most of the nearly 40 jurisdictions adopting ISSB standards 11.
PRI recommends a phased mandatory approach rather than comply-or-explain.
PRI recommends a phased mandatory approach rather than comply-or-explain.
How will the FCA enforce UK SRS compliance?
Can voluntary adopters use the transitional reliefs?
Yes, but with important distinctions.
Voluntary adopters can use the standards-level reliefs (UK SRS S1 paragraphs E3, E4, E6 and Scope 3 deferral in S2) but must adjust their compliance statements accordingly 16.
The FCA's timing-specific reliefs in CP26/5 apply only to in-scope listed companies from 1 January 2027.
Voluntary adopters can use the standards-level reliefs (UK SRS S1 paragraphs E3, E4, E6 and Scope 3 deferral in S2) but must adjust their compliance statements accordingly 16.
The FCA's timing-specific reliefs in CP26/5 apply only to in-scope listed companies from 1 January 2027.
What are the implications for asset managers?
Listed asset managers must prepare for mandatory reporting from 2027 under FCA CP26/5.
All managers benefit from improved standardised data from portfolio holdings.
Private capital managers may face MCR Strand 2 implications under the Government's Modernising Corporate Reporting programme for portfolio company scoping and data flows 15.
All managers benefit from improved standardised data from portfolio holdings.
Private capital managers may face MCR Strand 2 implications under the Government's Modernising Corporate Reporting programme for portfolio company scoping and data flows 15.
How does the UK approach compare internationally?
The UK follows the ISSB-aligned majority with six minor amendments to UK SRS S1 and S2.
Australia has phased mandatory implementation by entity size.
Japan permits SSBJ standards with FSA decision pending for mandatory application.
The EU's CSRD/ESRS uses double materiality, broader than the ISSB baseline 10.
Australia has phased mandatory implementation by entity size.
Japan permits SSBJ standards with FSA decision pending for mandatory application.
The EU's CSRD/ESRS uses double materiality, broader than the ISSB baseline 10.
What is the role of transition plans under UK SRS?
The TPT framework has been integrated under the IFRS Foundation since 2024.
FCA CP26/5 proposes referencing IFRS Educational Material (incorporating TPT elements) as guidance for companies 14.
The FCA does not mandate transition plans but requires disclosure of whether and where published.
FCA CP26/5 proposes referencing IFRS Educational Material (incorporating TPT elements) as guidance for companies 14.
The FCA does not mandate transition plans but requires disclosure of whether and where published.
Continue reading
Related guides & references
REFERENCE
UK SRS Requirements
Every requirement in one place — the four pillars, GHG rules, scope and timeline, the six UK amendments, and assurance
STANDARD
UK SRS S1: General Requirements
The foundational standard setting out general requirements for sustainability-related financial disclosures
STANDARD
UK SRS S2: Climate-related Disclosures
Detailed requirements for climate-related risks, opportunities, and transition planning
GUIDE
UK SRS Compliance Guide
Step-by-step implementation guidance for meeting UK SRS requirements
TECHNICAL
Scope 3 Emissions Reporting
Complete guide to value chain emissions reporting under UK SRS S2
Authority sources
02
03
04
Department for Business and Trade
2025-2026
05
06
Latham & Watkins LLP
30 January 2026
07
08
09
International Organization of Securities Commissions (IOSCO)
July 2023
10
11
Principles for Responsible Investment (PRI)
26 February 2026
12
Institutional Investors Group on Climate Change (IIGCC)
25 March 2026
13
14
Principles for Responsible Investment (PRI)
16 September 2025
15
16
Department for Business and Trade / FCA
2026