Independent reference · Updated 9 August 2026

UK Sustainability Reporting Standards — UK SRS, mapped

Six bodies publish sustainability reporting standards that a UK organisation might be asked to use: the Global Reporting Initiative, SASB, the ISSB's IFRS S1 and S2, the EU's ESRS, the residue of TCFD, and the UK's own UK SRS S1 and S2.

Almost none of it is law where you are sitting. This page is the map — what each one is, who it binds, when it starts, and which ones you can safely ignore.

Find which standards apply to you Four questions · listing status, size, EU exposure · nothing leaves your browser
The six, and their UK statusAugust 2026
Voluntary
GRI Standards
Impact reporting for any organisation. In effect since 1 January 2023.
Voluntary
SASB Standards
77 industry sets, now stewarded by the IFRS Foundation and referenced by IFRS S1.
Voluntary
IFRS S1 & S2 (ISSB)
The global baseline. Binding only where a jurisdiction adopts them.
EU law
ESRS
Revised set adopted 3 July 2026, still in scrutiny. Reaches UK groups through EU subsidiaries.
Disbanded
TCFD
Wound up 12 October 2023. Its four pillars survive inside IFRS S2 and UK SRS S2.
Voluntary
UK SRS S1 & S2
Issued 25 February 2026 for voluntary use. The FCA has only proposed making S2 mandatory.
Nothing in this column is mandatory for a UK company today except through the EU, or through rules that pre-date all six — SECR and ESOS.
Six standards. One of them is yours.

The UK reporting stack

Which regime applies to you?

Four regimes now sit alongside each other — two UK SRS standards, one established regulation, one energy scheme. Knowing which apply is the first step in any gap analysis, and the one most guides skip.

The four-regime stackS1 · S2 · SECR · ESOS

Orientation

UK SRS in ninety seconds.

Four questions every sustainability lead should be able to answer before the meeting starts — who must comply, what to report, when it kicks in, and how it differs from the ISSB baseline.

OrientationClick a question
The standards are a document. Compliance is a project.
Here’s what’s actually inside them.

Descending into the four pillars, the timeline, and the numbers

Disclosure framework

The four pillars, read closely.

UK SRS inherits the TCFD architecture and extends it across all material sustainability topics. Governance sets who’s accountable; strategy sets what’s material; risk management sets how it’s tracked; metrics and targets set what gets published. Every UK SRS page on this site is organised around one of these four.

Section P01–P04UK SRS S1 & S2
01 · Governance
Board oversight, management responsibilities, and the controls that bring sustainability into decision-making.
02 · Strategy
Material risks and opportunities, scenario analysis, transition plans, and effects on the business model.
03 · Risk Management
Identification, assessment, prioritisation and monitoring of sustainability and climate-related risks.
04 · Metrics & Targets
Cross-industry metrics, GHG emissions (Scopes 1–3), industry KPIs and forward-looking targets.

Key milestones

Four years, five dates, one decision.

Publication on 25 February 2026. An FCA Policy Statement expected in autumn 2026. Proposed mandatory climate reporting from 1 January 2027, Scope 3 comply-or-explain from 2028, S1 comply-or-explain from 2029. Between now and all of that sits one document.

25 Feb 2026
UK SRS published
DBT · done
Autumn 2026
FCA Policy Statement
confirming requirements
1 Jan 2027
S2 mandatory — proposed
for listed companies
1 Jan 2028
Scope 3 enhanced
after transition relief
1 Jan 2029
S1 comply-or-explain
broader sustainability

Materiality assessment

Scope 3 dwarfs Scope 1 and 2 — and readiness lags behind.

Across a typical UK plc emissions profile, value-chain emissions are the overwhelming majority — and the hardest to measure. FTSE 350 readiness by pillar shows governance leading, with metrics, Scope 3 and assurance the principal gaps.

Sample profile & readinessManufacturing · FTSE 350, n=348
Scope 3 materiality by sector15 GHG Protocol categories

Where investors and the FCA disagree

Do the Scope 3 and S1 carve-outs go too far?

Our signature format: the live tension in the regime, argued honestly in both directions — facts carry citations, judgment is labelled as judgment. This is the central disagreement between investor bodies and the FCA’s proportionality approach.

The tension, arguedPRI · IIGCC · FCA

Investor concern

FCA rationale

TightenBalancedProportionate
Enough depth.
Now check where you stand.
Compliance check

Are you in scope?

Three questions to assess whether your organisation must comply with UK SRS — and on what timeline.

Note — This is an indicative check based on the FCA / CA 2006 thresholds. For a definitive view, consult our full gap analysis guide.

Compliance calculator~30 sec
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. For UK SRS implementation support, consider working with a specialist carbon compliance consultancy, a fractional sustainability expert for ongoing advisory support, or GTM consultants to align go-to-market strategy with ESG reporting requirements.

What it is
UK adoption of the ISSB’s IFRS S1 & S2
Published
25 February 2026, by the DBT
Current status
Voluntary for all entities
Proposed mandatory from
1 Jan 2027 — in-scope listed companies
The two standards
S1 general sustainability · S2 climate
UK amendments
Six changes to the ISSB baseline
Reporting boundary
Same as the financial statements
Assurance
ISSA (UK) 5000 — effective 15 Dec 2026

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, understand ESG reporting requirements UK, and see whether CSRD applies to your UK group.

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.

250+
Employee test
UK group employees
SI 2014/1643
£44m + £38m
Financial test
Turnover AND balance sheet
SI 2023/1182
31 Dec 2026
Qualification date
Single assessment point
GOV.UK ESOS guidance
5 Dec 2027
Compliance deadline
Audit completion required
Environment Agency
ESOS Phase 4: complete guide, thresholds & qualification test →

UK SRS vs other ESG reporting requirements UK

FrameworkBest forFocus areasAssurance
UK SRSUK listed companiesClimate + enterprise valueISSA (UK) 5000
GRIImpact-focused reportingDouble materialityISAE 3000
ISSBInternational reportingInvestor needsISSA 5000
TCFDClimate-focused reportingClimate risksLimited 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.

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. UK SRS is the UK’s adoption of the ISSB baseline.

FrameworkIssuerMaterialityUK relevance
ISSB — IFRS S1 & S2IFRS FoundationFinancial (single)UK SRS S1 and S2 (UK adoption, six amendments)
ESRS (CSRD)European Commission (EFRAG)Double materialityEU large companies; UK groups via EU subsidiaries
GRI StandardsGlobal Reporting InitiativeImpact (double)Voluntary worldwide; stakeholder reporting
TCFD (legacy)Financial Stability BoardClimate onlyDisbanded Oct 2023; continues through IFRS S2
SASBIFRS FoundationIndustry-specificSupports IFRS S2 / UK SRS S2 sector disclosures
Chapter 11 · The map

The six standard-setters, and what each one actually is

Each body publishes a complete set and explains its own. None of them publishes the map, so here it is.

01
GRI Standards
Voluntary · worldwide
Three universal standards (GRI 1, 2 and 3), plus sector and topic standards. In effect since 1 January 2023. Built around impact — what the organisation does to people and the environment — not around what an investor needs to price it.
Use it when stakeholders, not shareholders, are asking.
02
SASB Standards
Voluntary · industry-specific
Industry-by-industry disclosure topics and metrics, now stewarded by the IFRS Foundation. They are not a competitor to IFRS S1 — S1 explicitly directs preparers to them when identifying industry-specific risks and opportunities.
Use it as the detail layer underneath IFRS S1 or UK SRS S1.
03
IFRS S1 and IFRS S2
Voluntary until a jurisdiction adopts them
The ISSB's global baseline: S1 for sustainability-related financial information generally, S2 for climate. Roughly 40 jurisdictions are adopting or using them. On their own they bind nobody — a national regulator has to pick them up first.
This is the standard your UK obligation is most likely to be built on.
04
ESRS
EU law · revised set adopted, in scrutiny
The European Sustainability Reporting Standards, made under the CSRD. The European Commission adopted a revised set on 3 July 2026, cutting mandatory datapoints by 61% — from roughly 1,144 to around 500. Both Delegated Acts are still in the Parliament and Council scrutiny period, so the revised set is adopted, not yet in force.
Reaches a UK group through its EU subsidiaries and branches, not directly.
05
TCFD
Disbanded · architecture survives
The Task Force on Climate-related Financial Disclosures was wound up on 12 October 2023, its monitoring handed to the IFRS Foundation. Its four pillars — governance, strategy, risk management, metrics and targets — are the skeleton of IFRS S2 and therefore of UK SRS S2.
You cannot report "against TCFD" any more. You report against what absorbed it.
06
UK SRS S1 and UK SRS S2
Voluntary · issued 25 February 2026
The UK's own adoption of the ISSB baseline, published by the Department for Business and Trade with six amendments to the international text. They are available for voluntary use. The FCA has proposed requiring listed companies to apply S2 — that proposal is not yet a rule.
If you are a UK-listed commercial company, this is the one to read first.

Three of the six use a different definition of materiality from the other three, which is the single most confused thing in the subject — it is set out below.

Chapter 12 · Scope

Who must report, and under which sustainability reporting standards

The honest answer for most UK organisations in August 2026: none of the six standards binds you, and two older rules that are not standards at all probably do.

A UK company listed in UKLR category 6, 14, 15, 16 or 22
Watch UK SRS S2. The FCA has proposed applying it to these listing categories from 1 January 2027. The consultation closed 20 March 2026 and the Policy Statement is still pending, so nothing is settled.
A large UK company or LLP, quoted or unquoted
SECR already binds you, and has since 2019. It is not one of the six — it lives in Schedule 7 to SI 2008/410 and it is real law today, unlike every standard above it.
A large UK organisation on the ESOS qualification date
ESOS Phase 4 binds you. An energy audit regime, not a reporting standard — but it is the other thing that is genuinely mandatory, and it uses the same energy data.
A UK group with an EU subsidiary or branch in CSRD scope
ESRS reaches you — through that subsidiary, which publishes a report drawn up at the level of the UK parent group. The revised standards apply to financial years beginning on or after 1 January 2027.
A UK private company, or an SME
No sustainability reporting standard binds you. You may be asked for data by a listed customer or a bank, and you may adopt UK SRS voluntarily — but there is no obligation to apply any of the six.
Anyone reporting because a stakeholder asked
GRI is the usual answer, because it is the only one of the six designed for an audience that is not an investor. It binds nobody and never has.
Chapter 13 · Vocabulary

Sustainability disclosure, sustainability reporting, and sustainability regulations

Three phrases that are used interchangeably and should not be. The distinction decides which document you are looking for.

Sustainability reporting
The whole activity — preparing and publishing information about an organisation's environmental, social and governance performance. It is the umbrella term, and it covers voluntary reports as readily as mandatory ones.
Sustainability disclosure
The narrower act of putting a specific piece of that information in front of a specific audience, usually because a rule requires it. The ISSB's standards are titled disclosure standards for exactly this reason — they specify what must be said, not how the organisation should behave.
Sustainability regulations
The law that makes a standard binding. A standard is a document; a regulation is what gives it force. UK SRS is a standard with no regulation behind it yet — which is precisely why it is voluntary.
Sustainability disclosure requirements
In the UK this phrase has a second, specific meaning: the FCA's Sustainability Disclosure Requirements regime for investment products and labels, which is a different thing from company reporting altogether.
Chapter 14 · Vocabulary

Reporting frameworks, reporting standards and reporting guidelines

A framework tells you how to think. A standard tells you what to disclose. Guidelines tell you how to do it. Only one of the three can be complied with.

TermWhat it doesCan you comply with it?Example
FrameworkSets a structure for thinking about a subjectNo — there is nothing to testTCFD's four pillars
StandardSpecifies the disclosures required, testablyYesIFRS S2, UK SRS S2, ESRS E1
Guidelines / guidanceExplains how to apply a standard or a lawNo — but ignoring them is visibleDBT's Environmental Reporting Guidelines

TCFD is the clearest case. It was always a framework, never a standard — which is why "TCFD compliance" was never a coherent claim, and why its absorption into IFRS S2 in 2023 turned four pillars of guidance into testable disclosure requirements for the first time.

Chapter 15 · The hard part

Three definitions of materiality, and why the same company gets three different reports

This is the difference that makes the six standards genuinely incompatible, rather than merely differently worded.

Financial materiality
ISSB · IFRS S1 and S2 · UK SRS S1 and S2
Information is material if omitting it could reasonably be expected to influence the decisions of primary users of general purpose financial reports — investors, lenders, creditors. The test faces one way: from the world, into the company's value.
Double materiality
EU · ESRS under the CSRD
Two tests, either of which is sufficient: the financial test above, and an impact test — whether the company's own effect on people and the environment is significant. A topic that is immaterial to enterprise value can still be mandatory.
Impact materiality
GRI Standards
The impact half on its own. GRI 3 asks the organisation to determine its most significant impacts on the economy, environment and people — whether or not those impacts ever reach the financial statements.

The consequence is practical. A company that has done a GRI materiality assessment has not done an ISSB one, and cannot reuse the conclusion. The UK SRS S1 materiality assessment is its own exercise, and the GRI and IFRS Foundation have published joint guidance precisely because organisations kept assuming otherwise.

Chapter 16 · International

Where the global sustainability reporting standards are actually law

Roughly 40 jurisdictions are adopting or using the ISSB standards. In four of them the obligation has already started, which makes them the closest thing to a preview of the UK's own timetable.

Australia
Already binding
AASB S2 mandatory for Group 1 entities for financial years beginning on or after 1 January 2025 — first reports already lodged. Group 2 follows from 1 July 2026, Group 3 from 1 July 2027.
Japan
Phasing from 2027
SSBJ standards, voluntary from the financial year ending March 2026, mandatory for Tokyo Prime Market issuers above ¥3tn market capitalisation from the year ending March 2027.
Singapore
Already binding
SGX climate rules: Scope 1 and 2 mandatory for all listed issuers from FY2025, Scope 3 from FY2026 for STI constituents and issuers above S$1bn.
Canada
Voluntary
CSDS 1 and CSDS 2 published 18 December 2024 and aligned to the ISSB, but voluntary unless a securities regulator adopts them. No effective date set.
European Union
Binding, on its own standards
Not ISSB — the EU uses its own ESRS under the CSRD. The revised set applies to financial years beginning on or after 1 January 2027, with FY2026 early application allowed.
United Kingdom
Voluntary
UK SRS S1 and S2 issued 25 February 2026 for voluntary use. The FCA's proposal to require S2 from 1 January 2027 awaits a Policy Statement.

Australia and Singapore matter to a UK reader for one reason: a UK group with subsidiaries in either is already inside a mandatory ISSB-aligned regime, whatever the FCA does next.

Sources — FCA CP26/5 ¶1.3; ASX; Japan FSA roadmap; SGX; CSSB; IFRS Foundation — use by jurisdiction.

Implementation tools

Software or consultancy?

Select the best carbon reporting software for UK SRS and ESG reporting requirements UK, or bring in expert help. Many companies use both.

💻 Choose software if…

  • Building in-house reporting capability
  • Need repeatable, consistent process
  • Want ongoing control and cost efficiency
  • Have internal sustainability expertise
  • Multiple reporting frameworks to manage
  • Regular reporting cycles (annual/quarterly)

👥 Choose consultancy if…

  • First-time carbon inventory
  • Limited internal sustainability resources
  • Need immediate expert guidance
  • Complex value chain assessment required
  • One-off reporting requirement
  • Assurance readiness support needed
Hybrid approach: Many companies use software for ongoing measurement and expert consultancy — including carbon.legal or a fractional sustainability expert — for assurance readiness. Combining control with expertise.
Top pick for UK SRS: Climatise
UK-first carbon management software built specifically for SECR and UK SRS requirements. Compare 17 carbon management software platforms →
Enterprise options
Evaluate Watershed and Normative for enterprise-scale carbon management software with deep Scope 3 coverage.
Key features
DESNZ emissions factors · SECR report formatting · Scope 3 all 15 categories · Audit trail for assurance
Critical action required For companies with December year-ends: UK SRS S2 becomes proposed mandatory for periods beginning 1 January 2027, meaning your first UK SRS report publishes in spring 2028. Because building Scope 3 data infrastructure takes considerable time, companies should begin UK SRS implementation immediately.

Key dates: FCA Policy Statement expected autumn 2026. ISSA (UK) 5000 assurance standard effective 15 December 2026. First UK SRS reports due within 4 months of year-end.
UK SRS implementation essentials

Data quality is paramount: UK SRS requires quantitative metrics with assurance-ready documentation. Build robust data collection, validation, and control processes from day one.

Board oversight required: UK SRS governance disclosures require documented board oversight. Establish sustainability committees before mandatory reporting begins.

Scenario analysis complexity: Most companies engage consultants for initial UK SRS scenarios then build internal capability over time.

Recommended implementation approach

Based on analysis of successful UK SRS implementations, a phased approach starting with gap analysis, followed by data infrastructure development, pilot reporting, and assurance readiness.

  1. Start with comprehensive gap analysis against UK SRS requirements
  2. Build Scope 3 data collection infrastructure early (long lead time)
  3. Establish board-level governance before mandatory reporting begins
  4. Engage assurance providers early for ISSA (UK) 5000 readiness
  5. Run pilot reporting cycles to identify and address issues
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.

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.

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.

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) consulted in CP26/5 on making climate and sustainability disclosures mandatory for UK-listed companies; the consultation closed on 20 March 2026 and a final policy statement is expected in autumn 2026. The Government is separately considering extending mandatory reporting to large companies through the Companies Act.

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.

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.

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.

How does UK SRS fit within the Government's broader sustainability policy?

UK SRS sits within the broader UK SDR framework, which includes FCA SDR investment product labels, transition plan requirements under separate consultation, and ISSA (UK) 5000 assurance standard. The approach supports the Leeds Reforms package aimed at strengthening the UK's position as a global financial centre.

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 tracker — covering 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. PRI recommends a phased mandatory approach rather than comply-or-explain.

How will the FCA enforce UK SRS compliance?

The FCA will set out its enforcement approach in a future Primary Market Bulletin — the standard mechanism for communicating supervisory expectations to listed companies. This will detail monitoring approaches, common challenges, and enforcement priorities.

Can voluntary adopters use the transitional reliefs?

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. 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 should prepare for the mandatory reporting the FCA has proposed from 2027 in CP26/5 — a proposal, not yet a rule, with the Policy Statement still pending. All managers benefit from improved standardised data from portfolio holdings. Private capital managers may face MCR Strand 2 implications for portfolio company scoping and data flows.

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. The EU's CSRD/ESRS uses double materiality, broader than the ISSB baseline.

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. The FCA does not mandate transition plans but requires disclosure of whether and where published.

Sources

Primary sources cited on this page

FCA CP26/5 publication page
Financial Conduct Authority
FCA SDR investment product labels
Financial Conduct Authority · 2024
Consultation on transition plan requirements
Department for Business and Trade
ISSA (UK) 5000 sustainability assurance standard
Financial Reporting Council · 12 Nov 2025
CP26/5 analysis
Latham & Watkins LLP · 30 Jan 2026
PRI response to final UK SRS versions
Principles for Responsible Investment · 26 Feb 2026
UK SRS S1 & S2 — full publication
Department for Business and Trade / FCA

Why this guide exists

Independent. Sourced.
Actionable.

Every figure on this page carries an inline citation to its primary source. No number appears here without one. That’s the whole editorial policy — and now, the compliance check is built into the reading.

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