UK Sustainability Reporting Standards 2025

UK SRS 2025 overview

The UK Sustainability Reporting Standards 2025 refers to the development process that began with exposure drafts published by the Department for Business and Trade on 25 July 20254, progressed through public consultation, and resulted in final publication on 25 February 20261.

The final UK SRS comprise two standards: UK SRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and UK SRS S2 (Climate-related Disclosures)1. Both are UK-endorsed versions of the corresponding IFRS Sustainability Disclosure Standards, adapted for the UK regulatory context.

The UK Sustainability Reporting Standards 2025 consultation process was extensive, receiving 209 responses from professional services firms, corporates, trade associations, and individuals2. This feedback significantly shaped the final UK Sustainability Reporting Standards 2025 published in February 2026.

Development timeline from 2025

The UK Sustainability Reporting Standards 2025 development process followed a structured timeline throughout 2025 and early 2026:

July 2025: The Department for Business and Trade published exposure drafts of UK SRS S1 and S2 for public consultation4. The consultation ran for three months, closing on 25 October 2025.

October 2025: The consultation period closed with 209 responses received2. Responses came from a diverse range of stakeholders including accounting firms, corporates, industry associations, and sustainability professionals.

November 2025 - February 2026: DBT analysed consultation responses and worked with the UK Sustainability Disclosure Technical Advisory Committee (TAC) to finalise the standards. This period also incorporated December 2025 amendments to IFRS S2 published by the ISSB.

February 2026: Final UK SRS S1 and S2 published alongside a comprehensive Government Response document detailing how consultation feedback was incorporated12.

The 2025 consultation process

The 2025 consultation was comprehensive, covering six key areas:

• UK-specific amendments to IFRS S1 and IFRS S2, including effective dates, transitional reliefs, and SASB Standards application
• Interaction with existing UK climate disclosure requirements under Companies Act 2006 section 414CB and TCFD-aligned listing rules
• Application to private companies through the Modernising Corporate Reporting (MCR) Strand 2 pathway
• Connectivity principle requirements and financial statement integration
• Assurance requirements and the role of ISSA (UK) 5000
• Practical implementation challenges for UK entities

The 209 consultation responses2 provided valuable feedback that led to several significant changes between the exposure drafts and final standards. Key stakeholder concerns included the burden of SASB Standards compliance, timing of delayed reporting relief, and clarity around transitional provisions.

Publication in February 2026

On 25 February 2026, the Department for Business and Trade published the final UK SRS S1 and S21. The standards became available for voluntary use immediately, with mandatory application timelines to be set through separate regulatory processes.

The publication included:

• UK SRS S1: General Requirements for Disclosure of Sustainability-related Financial Information (86 paragraphs)
• UK SRS S2: Climate-related Disclosures (incorporating ISSB December 2025 amendments)
• Government Response to the consultation detailing 209 responses and how feedback was incorporated
• Technical basis for UK amendments to IFRS S1 and S2
• Implementation guidance for voluntary adopters

The final standards incorporated six key UK amendments to IFRS S1 and S2, reflecting consultation feedback and UK regulatory context2.

Mandatory implementation from 2027

While UK SRS became available for voluntary use from 25 February 2026, mandatory application follows a phased approach through separate regulatory processes.

Listed companies: The Financial Conduct Authority published consultation paper CP26/5 on 30 January 20263, proposing mandatory UK SRS S2 (climate) disclosure for listed companies from accounting periods beginning on or after 1 January 2027.

The FCA's proposed timeline includes:

• 1 January 2027: UK SRS S2 (excluding Scope 3) mandatory for approximately 500 listed companies
• 1 January 2028: Scope 3 emissions disclosure on comply-or-explain basis (subject to deferral)
• 1 January 2029: UK SRS S1 (general sustainability) on comply-or-explain basis

Private companies: Application to private companies will be determined through the Modernising Corporate Reporting (MCR) Strand 2 consultation expected during 20262.

Private companies pathway

The 2025 consultation process highlighted the need for a separate pathway for private company application of UK SRS. The Government Response2 confirmed that private company requirements will be developed through MCR Strand 2.

Expected MCR Strand 2 scope:

• Threshold criteria for private company application (likely based on size and public interest)
• Possible amendments to Companies Act 2006 to require UK SRS disclosure
• Simplified reporting requirements for smaller entities
• Timeline for mandatory application (earliest realistic date 2028-2029)

Private companies may adopt UK SRS voluntarily from 25 February 2026 while awaiting clarity from the MCR Strand 2 consultation.

How to prepare in 2025-2026

Organisations preparing for UK Sustainability Reporting Standards 2025 implementation should focus on building capability progressively. This includes evaluating UK SRS software solutions and understanding broader ESG reporting requirements UK:

For listed companies (likely in scope from 2027):

• Review existing TCFD disclosures against UK SRS S2 requirements to identify gaps
• Establish cross-functional working groups spanning finance, sustainability, legal, and risk functions
• Begin voluntary UK SRS S2 reporting in 2026 annual reports where practical
• Build Scope 3 emissions data infrastructure through supplier engagement programmes
• Engage assurance providers early to scope voluntary or mandatory assurance approach

For private companies (potential future scope):

• Monitor MCR Strand 2 consultation expected during 2026
• Establish materiality assessment processes aligned with financial materiality principles
• Build basic emissions data infrastructure (Scope 1 and 2) as foundation
• Consider voluntary partial adoption to build organisational capability
• Track regulatory developments and threshold criteria discussions

Key changes from 2025 consultation

The consultation process resulted in several important changes between exposure drafts and final standards:

1. SASB Standards application softened: Changed from "shall refer to and consider" to "may refer to and consider" in UK SRS S2, making industry-based guidance permissive rather than mandatory.

2. Delayed reporting relief removed: UK SRS requires sustainability disclosures to be published at the same time as financial statements, strengthening the connectivity principle.

3. Extended transitional relief: Climate-first transitional relief extended from one to two years, giving UK entities more time to build non-climate sustainability data infrastructure.

4. ISSB amendments incorporated: December 2025 IFRS S2 amendments on financed emissions and jurisdictional reliefs incorporated into UK SRS S2.

5. Compliance statement clarifications: Enhanced requirements for disclosure when using transitional reliefs, improving transparency for users of disclosures.