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. While reporting is not yet mandatory, UK SRS are expected to form the foundation of future UK sustainability reporting requirements, replacing current fragmented approaches such as SECR and TCFD‑aligned disclosures.
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.
How UK SRS Relates to SECR and TCFD
UK SRS does not extend existing reporting, it aims to replace and consolidate current approaches.
SECR focuses mainly on historic energy and emissions data. Whereas 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
- Mandatory adoption has not yet been confirmed, but is widely expected following further regulatory and legislative steps
- 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
Smaller organisations (unlisted firms with fewer than two qualifying size metrics) remain exempt from UK SRS requirements. 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 your UK SRS compliance.
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UK SRS FAQs
UK SRS builds on existing climate and energy reporting but extends 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, beyond the current focus of SECR.
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.
UK SRS is expected to directly affect tens of thousands of UK organisations, with a much wider indirect impact across supply chains.
Although not yet mandatory, UK SRS is expected to focus on the UK’s largest private companies first, including organisations already subject to SECR or climate‑related disclosures under the Companies Act.
Prepare your organisation for UK SRS by requesting a demo of our Carbon Management Software today