UK Sustainability Reporting (UK SRS) Compliance
Helping organisations prepare for the next phase of UK sustainability reporting
The UK Sustainability Reporting Standards (UK SRS) represent a major shift in how sustainability‑related information is disclosed by UK organisations. UK SRS are the UK‑endorsed versions of the International Sustainability Standards Board (ISSB) global baseline standards: IFRS S1 and IFRS S2.
Following the UK Government’s consultation, UK SRS S1 and UK SRS S2 were published on 25 February 2026 and are now available for voluntary use, in whole or in part. UK SRS S1 and UK SRS S2 are available for voluntary use and will form part of the UK’s sustainability reporting framework. For specified listed companies, new FCA rules aligned with UK SRS will replace existing climate-reporting rules for accounting periods beginning on or after 1 January 2027. SECR remains a separate statutory reporting requirement for organisations within its scope.
Early preparation is critical. UK SRS changes sustainability reporting so it clearly shows how environmental and climate issues affect the way an organisation is run, the risks it faces, and its future plans. The information needs to be clear, reliable and useful for real business decisions, not just written to meet reporting rules.
In this video we outline the key considerations large organisations should be aware of as sustainability reporting expectations increase in the UK. It explains how upcoming standards will require closer alignment between sustainability information, governance and business strategy, and why early preparation can help organisations strengthen data quality, internal controls and readiness for more detailed public reporting.
What is UK SRS?
UK Sustainability Reporting Standards (UK SRS) are designed to improve the quality, consistency, and comparability of sustainability information reported by UK organisations.
They are built on:
UK SRS S1 – General requirements for disclosing sustainability‑related financial information
UK SRS S2 – Climate‑related disclosures, including greenhouse gas emissions and transition planning.
Together, the standards require organisations to explain how sustainability‑related risks and opportunities affect enterprise value, not just describe sustainability activities in isolation.
UK SRS S1 and S2: What is Covered
UK SRS S1: Organisations are expected to provide structured information on:
- Governance and oversight of sustainability risks and opportunities
- The impact of sustainability‑related matters on business strategy and financial planning
- Risk management processes
- Metrics and targets used to measure performance.
UK SRS S2 builds on S1 with climate‑specific requirements, including:
- Climate governance and accountability
- Transition planning and resilience
- Climate scenario analysis
- Greenhouse gas emissions, including Scopes 1, 2 and 3.
For organisations that want a deeper overview of timelines and readiness considerations, our UK SRS compliance guidance explains how the emerging requirements may affect reporting cycles.
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How UK SRS Relates to SECR and TCFD
UK SRS is expected to build on existing reporting frameworks such as SECR and TCFD, supporting a broader and more consistent approach to sustainability-related disclosures.
SECR focuses mainly on historic energy and emissions data. TCFD-aligned reporting emphasised governance and climate risk.
UK SRS integrates these elements into a single, structured reporting framework aligned to financial reporting concepts, definitions, and controls. This significantly increases expectations around data quality, consistency, auditability, and internal governance.
UK SRS Timeline and Status
- UK SRS S1 and S2 are published and available for voluntary use
- The FCA has finalised UK SRS-aligned disclosure rules for specified listed companies. These apply on a comply-or-explain basis to accounting periods beginning on or after 1 January 2027. Any mandatory requirements for other UK companies remain subject to further government decisions
- Large UK organisations, particularly those already reporting under SECR, TCFD or investor ESG frameworks, are expected to be early adopters.
Organisations that wait until reporting becomes mandatory risk facing compressed timelines, data gaps, and governance challenges.
What Can Organisations do to Get Ready for UK SRS?
Preparing for UK SRS is not just a reporting exercise. It requires:
- Clear ownership and governance of sustainability reporting
- Alignment between finance, sustainability, risk, and operations
- Robust, repeatable data collection for emissions and other sustainability metrics
- Documented controls and assumptions underpinning reported information
- Confidence that sustainability disclosures can withstand investor, auditor, and regulatory scrutiny.
Who Will Need to Comply First?
Exceptions and Reporting Relief
UK SRS reporting is not currently mandatory for unlisted organisations. UK SRS S1 and UK SRS S2 are available for voluntary use by organisations of any size, while the scope of any future mandatory requirements for unlisted companies remains subject to government decisions. Organisations may be allowed to start by reporting on climate‑related information first, with more time to add wider sustainability disclosures later.
How TEAM Energy Can Help
We support organisations at every stage of UK SRS readiness, from early gap analysis through to ongoing reporting support.
Our services include:
- UK SRS readiness assessments and gap analysis
- Governance and accountability design
- Emissions measurement and Scope 3 support
- Data systems and reporting processes aligned with IFRS S1 and S2
- Support translating sustainability risks into decision‑useful disclosures
Whether you are responding to early investor pressure or preparing for future mandatory reporting, our experts can help you meet UK SRS requirements.
Following the UK SRS consultation and the February 2026 publication, we help organisations move from reading the standards to producing a dry-run disclosure.
What the UK SRS consultation decided
The UK SRS consultation ran on exposure drafts of UK SRS S1 and UK SRS S2 between 25 June 2025 and 17 September 2025. Following that UK SRS consultation, the Government published the final UK Sustainability Reporting Standard set on 25 February 2026.
UK SRS is therefore no longer a proposal. It is available for voluntary use, in whole or in part. Mandatory application has not yet been written into law. For listed companies, the FCA is consulting on replacing TCFD-aligned rules with UK SRS-based reporting from accounting periods beginning on or after 1 January 2027. Wider rollout to other large UK organisations will be decided through further government consultation.
If you responded to the UK SRS consultation, or you have been waiting for the outcome before building a reporting process, the practical next step is a gap assessment against S1 and S2 using your current SECR and TCFD-style disclosures.
UK SRS FAQs
UK SRS is expected to become the backbone of UK sustainability disclosure, sitting beyond SECR’s energy and carbon focus. It builds on existing climate and energy reporting while extending disclosure expectations to include governance, strategy, risk management and forward-looking climate-related information.
Reporting teams should expect greater emphasis on financial materiality, internal controls and audit-ready evidence, going beyond the current focus of SECR.
This keeps the useful content you already have, while removing any suggestion that UK SRS is definitely going to replace SECR entirely.
The final UK SRS have been published and can be used on a voluntary basis. There are currently no legally confirmed dates for mandatory adoption.
The FCA is consulting on how UK SRS could be introduced for listed companies, including proposals to replace existing TCFD‑aligned rules from accounting periods beginning on or after 1 January 2027.
Decisions on wider mandatory reporting for other UK organisations will be taken through future government consultations under the Modernising Corporate Reporting programme.
Governance, climate risks/opportunities, scenario analysis, Scope 3, forward-looking information, and potentially assurance.
Following the UK Government’s consultation, UK SRS S1 and UK SRS S2 were published on 25 February 2026 and are available for voluntary adoption, either in full or in part. Although reporting is not yet mandatory, UK SRS are expected to underpin future UK sustainability reporting requirements.
The confirmed FCA rules apply to specified listed companies. The number of other UK organisations that may become subject to mandatory UK SRS reporting will depend on future government decisions. Organisations may also experience indirect reporting requests from investors, customers and supply-chain partners.
The first confirmed mandatory UK SRS-aligned requirements apply to specified listed companies for accounting periods beginning on or after 1 January 2027. The government has not yet finalised whether, when or how mandatory UK SRS reporting will apply to large private companies.
The UK Government consulted on exposure drafts of UK SRS S1 and S2 from June to September 2025. The consultation tested UK-specific amendments and the practical cost of using the standards. Final UK SRS S1 and S2 were then published on 25 February 2026 for voluntary use.
Not yet. UK SRS can be used voluntarily now. The FCA is consulting on mandatory UK SRS-based reporting for listed companies from accounting periods beginning 1 January 2027. Any mandate for other large UK organisations will follow a further government consultation.
Prepare your organisation for UK SRS by requesting a demo of our Carbon Management Software today