What Are the UK Sustainability Reporting Standards?

The Origin of UK SRS

The story of UK SRS begins at COP26 in Glasgow in November 2021, where the IFRS Foundation announced the creation of the International Sustainability Standards Board (ISSB). The ISSB was established to develop a global baseline of sustainability disclosure standards focused on the information needs of investors and capital markets. Its creation responded to a fragmented landscape of voluntary frameworks — TCFD, SASB, GRI, CDP — that made cross-company comparison difficult and imposed overlapping reporting burdens.

In June 2023, the ISSB published its first two standards: IFRS S1 (General Requirements for Disclosure of Sustainability-related Financial Information) and IFRS S2 (Climate-related Disclosures). These represented the global baseline that individual jurisdictions could adopt, adapt, or build upon according to their own legislative frameworks.

In October 2023, the Task Force on Climate-related Financial Disclosures (TCFD) was formally disbanded. Its monitoring responsibilities were transferred to the ISSB, marking the end of TCFD as a standalone framework and the beginning of the transition to mandatory, standards-based sustainability reporting globally.

From Global Standards to UK Endorsement

Over 40 jurisdictions committed to aligning with the ISSB standards following their publication. The UK moved early. The Financial Reporting Council (FRC) formed a UK Technical Advisory Committee (TAC) to assess whether IFRS S1 and S2 were suitable for the UK market without modification, or whether UK-specific amendments were needed.

The TAC published its final report in December 2024, recommending endorsement of the ISSB standards with four minor UK-specific amendments. The UK government conducted a formal consultation between June and September 2025, receiving responses from listed companies, investors, audit firms, and industry bodies.

On 25 February 2026, the Department for Business and Trade published the UK Sustainability Reporting Standards: UK SRS S1 (General Requirements) and UK SRS S2 (Climate-related Disclosures). Both standards were made available for voluntary use immediately. Mandatory application for FCA-regulated listed companies begins from financial years starting on or after 1 January 2027.

The Four UK-Specific Amendments

UK SRS is not a wholesale rewrite of the ISSB standards. It follows the global baseline closely, with four targeted amendments recommended by the TAC:

1. Removal of the first-year delay on publishing sustainability disclosures. IFRS S1 allowed companies to delay publication of sustainability disclosures relative to their financial statements in the first year of adoption. UK SRS removes this relief — sustainability disclosures must be published at the same time as the annual report from day one.
2. SASB reference amended from “shall” to “may.” IFRS S1 directs companies to consider SASB Standards when identifying material sustainability topics. UK SRS amends this from a mandatory consideration to a permissive one — companies may consider SASB Standards but are not required to do so.
3. Timing alignment of reporting periods. UK SRS clarifies the alignment between sustainability reporting periods and the financial reporting period under UK Companies Act requirements, ensuring consistency with the Strategic Report cycle.
4. UK-specific connectivity with Companies Act reporting. UK SRS establishes an explicit connection between sustainability disclosures and the Companies Act reporting framework, confirming that UK SRS disclosures sit within the Strategic Report and benefit from s463 liability protections.

What UK SRS Contains

Two standards were published. UK SRS S1 establishes the general requirements for sustainability-related financial disclosures. It defines the materiality framework, the connectivity principle linking sustainability and financial reporting, and the disclosure requirements for all material sustainability topics — including biodiversity, water, workforce, and supply chain. S1 is the broader standard and applies on a comply-or-explain basis from financial years beginning on or after 1 January 2029.

UK SRS S2 covers climate-related disclosures specifically. It requires reporting on governance, strategy, risk management, and metrics and targets related to climate risks and opportunities. S2 includes mandatory scenario analysis, transition plan disclosure, and Scope 1, 2, and 3 greenhouse gas emissions reporting. S2 becomes mandatory for listed companies from financial years beginning on or after 1 January 2027.

Both standards use the four-pillar disclosure framework inherited from TCFD — Governance, Strategy, Risk Management, and Metrics and Targets — but expand the requirements significantly within each pillar. For a detailed comparison, see TCFD vs UK SRS.

Why UK SRS Matters

UK SRS represents a fundamental shift from voluntary, framework-based sustainability reporting to mandatory, standards-based disclosure. For the approximately 515 primary-listed companies in the initial scope, this means sustainability reporting moves from best practice to legal obligation. For investors, it means comparable, reliable sustainability data across the UK listed market. For the broader economy, it means the UK aligns with the global ISSB baseline, supporting international capital flows and reducing the reporting burden for companies operating across multiple jurisdictions.