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UK Sustainability Reporting Standards (UK SRS): What you need to know and how to prepare

The landscape of corporate sustainability reporting in the UK is undergoing a major shift. Fragmented rules are being replaced by a unified framework known as the UK Sustainability Reporting Standards (UK SRS). This change moves sustainability from a tick-box exercise to a core part of corporate and financial strategy.

The finalised standards, aimed at providing consistent and standardised reporting were published on the 25 February 2026 and are available here. 

What are the UK Sustainability Reporting Standards?

The UK SRS set out disclosure requirements based on the global baseline established by the International Sustainability Standards Board (ISSB). They are designed to help investors understand how sustainability risks — such as climate change — affect a company's financial health.

Two primary standards currently sit at the heart of this transition:

  • UK SRS S1 (general requirements): Focuses on broad sustainability-related financial risks and opportunities.
  • UK SRS S2 (climate-related disclosures): Focuses specifically on climate-related impacts, including greenhouse gas emissions and transition plans.

The UK SRS S2 will replace the Task Force on Climate-related Financial Disclosures (TCFD) and the Streamlined Energy and Carbon Reporting (SECR) framework.

The four pillars of disclosure

Rather than reinventing the wheel, the UK SRS adopts the familiar four-pillar structure from the TCFD:

  1. Governance: How the board and management oversee sustainability risks and opportunities
  2. Strategy: How sustainability risks impact the business model and financial planning
  3. Risk management: The processes used to identify, assess, and manage risks
  4. Metrics and targets: Quantifiable performance data, including Scope 1, 2, and 3 emissions

Key timelines for businesses

Listed companies 

The Financial Conduct Authority has published Consultation Paper CP26/5, setting out proposals to evolve the rules for listed companies’ sustainability disclosures. 

Whilst the rules are more relaxed for those in the secondary listing or depository receipts category; the proposals for commercial companies, transition and non-equity shares and non-voting equity shares categories are summarised below[1]:  

  • Mandatory climate disclosures (except Scope 3)
  • Comply or explain Scope 3 disclosures 
  • Comply or explain sustainability (non-climate) disclosures 
  • Transparency around transition plans 
  • Transparency around any UK SRS related assurance

The proposed implementation timeline is as follows[2]:

  • 2026: Final standards expected to be published for voluntary use.
  • 2027: Mandatory reporting expected to begin for large and listed companies.
  • Phase-in relief: Companies typically have a one-year grace period for Scope 3 emissions reporting and a two-year period before they must report on non-climate sustainability issues.
Large listed companies 

In parallel, Government is expected to announce a further consultation considering the extension of mandatory reporting to large companies through the Companies Act. 

The current thresholds for a large company are those meeting two of the following three criteria: Turnover >54 million, Balance sheet total >£27 million and Employees >250. 

These consultations are very likely to move towards alignment with UK SRS disclosures. 

Why this matters now

Beyond just compliance, the UK SRS aims to provide "decision-useful" information for investors. By aligning with global standards, UK firms can remain competitive in international markets and can improve access to capital from ESG-focused investors.

For more detailed guidance, businesses can refer to the GOV.UK page on UK SRS. 

For more information on how UK SRS may impact you, a more detailed breakdown of Scope 3 reporting requirements, advice on how to begin a materiality assessment or to undertake GHG and Sustainability Assurance, please get in touch with our Head of ESG, Snigdha Jain.

4 March 2026

[1] Financial Conduct Authority, Consultation Paper CP26/5: Section 3.6, Figure 1

[2] Financial Conduct Authority, Consultation Paper CP26/5: Section 3.9, Figure 2

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