What is UK SRS? The UK Sustainability Reporting Standards explained

UK SRS in one paragraph

UK SRS — the UK Sustainability Reporting Standards — is the UK's adoption of the global sustainability disclosure baseline developed by the International Sustainability Standards Board (ISSB). 1The Department for Business and Trade (DBT) published SRS S1 (general sustainability) and SRS S2 (climate) on 25 February 2026, incorporating six UK-specific amendments to the underlying IFRS S1 and IFRS S2 standards. 1The FCA proposes making UK SRS S2 mandatory reporting for listed companies in UKLR categories 6, 14, 15, 16, and 22 from accounting periods beginning on or after 1 January 2027 under consultation paper CP26/5. 2

Who published UK SRS, and when

The Department for Business and Trade (DBT) published UK SRS S1 and S2 on 25 February 2026 alongside the government response to its June 2025 consultation on the exposure drafts. 1 209 consultation responses informed the final standards. 1

This corrects a common misattribution: the FRC did NOT publish UK SRS. The FRC hosts the UK Sustainability Disclosure Technical Advisory Committee (TAC) and Policy and Implementation Committee (PIC) which supported development, and the FRC published the ISSA (UK) 5000 assurance standard. 4But FRC did not publish the UK SRS standards themselves — DBT published them. 1

The two standards — UK SRS S1 and UK SRS S2

UK SRS S1: General Requirements for Disclosure of Sustainability-related Financial Information. The framework standard. 1 Establishes materiality, four pillars architecture, connectivity principle, disclosure architecture across all material sustainability topics.

UK SRS S2: Climate-related Disclosures. Applies S1's framework specifically to climate risks and opportunities. 1 Requires Scope 3 emissions disclosure, climate scenario analysis, and climate transition plans disclosure.

Both follow the TCFD-derived UK SRS pillars architecture (Governance, Strategy, Risk Management, Metrics and Targets). 3 See S1 standard, S2 climate standard, and TCFD pillars for detailed coverage.

How UK SRS relates to IFRS S1 and S2 — the six amendments

UK SRS S1 and S2 are the UK's national adoption of the global IFRS S1 and S2 standards developed by the ISSB. 3 They incorporate SIX verified UK-specific amendments — correcting the common "four" misattribution still found in many sources including the live legacy site. 1

The "removed time limits" amendment is materially important — the standards no longer specify when transitional reliefs end. 1 That power now sits with FCA (for listed companies) and DBT (for any future private extension via MCR Strand 2). This is a significant UK design choice. 2

See UK SRS vs IFRS S1/S2 for full amendment details.

How UK SRS fits in the broader regulatory landscape

UK SRS sits alongside three other UK regimes that companies may also need to apply: 1

SECR (Streamlined Energy and Carbon Reporting) — mandatory since 2019 for companies meeting the two-of-three test (£36m turnover, £18m balance sheet, 250 employees); covers Scope 1, Scope 2, and a defined Scope 3 reporting subset. 1

ESOS (Energy Savings Opportunity Scheme) — four-yearly mandatory energy audit; Phase 4 deadline 5 December 2027 under SI 2014/1643 as amended by SI 2023/1182. 1

TCFD-aligned Listing Rules — currently in force; will be replaced by S2 requirements for SRS compliance listed companies from 1 January 2027 (CP26/5 paragraph 9.11). 2

Internationally, UK SRS is one of 37 jurisdictions adopting or moving to ISSB standards per the IFRS Foundation's September 2025 jurisdictional tracker. 7 The EU operates a different regime — CSRD with ESRS standards — using double materiality (UK SRS uses single financial materiality consistent with all ISSB-based standards).

For multi-jurisdictional groups subject to both CSRD and UK SRS, the practical approach is to design data infrastructure to ESRS requirements then calibrate down to UK SRS and IFRS S1/S2 — substantial common ground means parallel systems are unnecessary.

For the complete landscape overview, see broader sustainability reporting landscape.

Frequently Asked Questions

UK SRS S1 vs UK SRS S2

UK SRS comprises two distinct but interconnected standards. S1 sets the foundational requirements; S2 specifies climate-specific requirements that build on S1's foundation.

S2 cannot be applied without S1's conceptual foundation — definitions of materiality, scope of value chain, and financial-statement connectivity. This is why S1's foundational elements apply from January 2027 alongside S2, even though the broader S1 sustainability disclosures don't move to comply-or-explain until January 2029.

Who must comply with UK SRS

SRS standards apply initially to who must comply in five UK Listing Rules categories — the most significant UK companies by market capitalisation. The FCA's CP26/5 proposes mandatory reporting across these five categories:

• UKLR 6 — Commercial companies (the primary category for most UK-listed equity issuers)
• UKLR 14 — Secondary listings (overseas companies with secondary LSE listings)
• UKLR 15 — Depositary receipts
• UKLR 16 — Non-equity shares and non-voting equity shares
• UKLR 22 — Transition category (companies that moved from the previous Standard segment)

Private company inclusion remains under consultation. The Government has confirmed that compliance requirements for private companies will be addressed through the Modernising Corporate Reporting programme via amendments to the Companies Act 2006. A consultation is expected later in 2026, with proportionate requirements and size thresholds to be developed.

For detailed scope determination including thresholds and edge cases, see who must comply.

Implementation timeline

UK SRS follows a phased implementation timeline: voluntary reporting now, UK SRS S2 mandatory from January 2027, supply chain emissions enhanced from January 2028, UK SRS S1 comply-or-explain from January 2029.

Phase 1 — Voluntary adoption (open now)

Any UK entity may apply UK SRS S1 and S2 from 25 February 2026, in full or in part, on a voluntary adoption basis. Many companies are beginning voluntary partial adoption to build capability ahead of compliance deadline.

Phase 2 — S2 mandatory (proposed from 1 January 2027)

Under FCA CP26/5, climate-related disclosures becomes mandatory reporting for accounting periods beginning on or after 1 January 2027 for in-scope listed companies. First reports publish in spring 2028 for December 2027 year-ends.

Phase 3 — Scope 3 enhanced (from 1 January 2028)

Scope 3 requirements disclosure moves to comply-or-explain across all 15 GHG Protocol categories from accounting periods beginning 1 January 2028, after the first-year transition relief expires.

Phase 4 — S1 comply-or-explain (from 1 January 2029)

The broader general sustainability disclosures move to comply-or-explain for accounting periods beginning 1 January 2029. S1's foundational elements apply from January 2027 alongside S2 because S2 cannot be applied without them.

For the complete chronology including all milestones, see UK SRS timeline.

UK-specific amendments

UK SRS is the UK endorsement of IFRS S1 and S2 with six categories of UK-specific amendments. The substance and structure of the global baseline remain; the amendments address UK regulatory environment, proportionality choices, and UK-specific mechanisms.

For detailed treatment of where UK SRS diverges from the global baseline, see UK SRS vs IFRS S1 and S2.

International alignment

UK SRS is part of a global movement toward consistent sustainability disclosure. Over 40 jurisdictions are adopting ISSB-aligned standards, allowing investors to compare sustainability information across markets while individual jurisdictions retain regulatory sovereignty.

The UK's choice to endorse IFRS S1 and S2 (rather than develop a fully bespoke framework) means UK-listed companies can meet both UK obligations and international investor expectations through a single reporting framework. The six UK-specific amendments preserve necessary UK regulatory characteristics without breaking comparability with the global baseline.

UK SRS also integrates with the related UK assurance framework ISSA (UK) 5000, published by the FRC on 12 November 2025 and effective 15 December 2026. This gives assurance providers time to align with the new framework before mandatory UK SRS S2 disclosures begin.

Frequently asked questions