How to Prepare for the UK Sustainability Reporting Standards (UK SRS)
The UK Sustainability Reporting Standards (UK SRS) is to be introduced to replace the Streamlined Energy and Carbon Reporting (SECR) and the Task Force on Climate-related Financial Disclosures (TCFD). With large UK organisations expected to start their compliance from the financial year 2026/2027.
UK SRS will introduce a more comprehensive approach to sustainability reporting for businesses, covering governance, climate risks and forward-looking disclosures. Once these standards move from voluntary to mandatory, organisations will face new regulatory obligations around sustainability disclosures.
To ensure that organisations do not miss out on developments or announcements of the new reporting standards, we will be keeping an eye out for any updates and sharing them regularly.
Why is the UK SRS Replacing SECR?
UK Sustainability Reporting Standards will take over from SECR to give businesses a broader, more globally aligned framework to support their sustainability disclosure.
What is Changing?
Expanded Scope
UK SRS goes beyond reporting on energy and carbon emissions, it includes an integration of sustainability and financial reporting, improved corporate governance, target setting for carbon reduction and climate transition, and full Scope 3 emissions reporting.
Global Alignment
Built on ISSB’s IFRS S1 and S2 standards, UK SRS ensures consistency with international best practice while adding UK-specific requirements.
A Clear UK SRS Timeline
What will the requirements be for UK SRS Reporting?
Under the new UK SRS, businesses will need to disclose three key areas:
Governance and Strategy
You will be required to explain how your organisation manages sustainability risks and opportunities, including oversight and decision-making processes (aligned with IFRS S1)
Climate Specific Information
Share forward-looking details such as scenario analysis and net zero transition plans to demonstrate readiness for carbon reduction in the future (aligned with IFRS S2).
Expanded Emissions Coverage
Report on Scope 1, 2, and 3 emissions, with phased requirements for Scope 3. Independent assurance is expected to become mandatory in future phases.
Financial Reporting
Organisations will be required to issue their sustainability disclosures alongside their audited financial reports.
Who Must Comply With UK SRS?
Businesses who will need to comply with UK SRS include:
UK-registered companies (corporate, LLPs, large PE-backed, etc.) meeting two or more of:
- Turnover > £54 million
- Balance sheet > £27 million
- >250 employees
Large groups using consolidated thresholds: turnover > £64 million, assets > £32 million, over 250 employees.
Listed Companies
- Premium and standard listed commercial companies must follow sustainable disclosures:
- Premium: since Jan 2021
- Standard: since Jan 2022
- FCA will extend rules to require UK SRS compliance for listed companies.
FCA-Regulated Asset Managers and Institutional Investors
Already subject to SDR/TPT related disclosures and will need to align with UK SRS.
Large LLPs
Those exceeding the same size thresholds listed above must comply with SRS disclosures.
Exceptions and Reporting Relief
- Smaller organisations (unlisted firms with fewer than two qualifying size metrics) remain exempt from UK SRS requirements.
- Transitional relief applies: early years may focus on climate-specific disclosures before expanding to full scope.
What will Happen if I do Not Comply?
The UK government is considering extending director liability provisions to sustainability disclosures. If that occurs, directors could risk being personally liable for material misstatements or omissions in sustainability reports, underscoring the need for rigor and accuracy.
However, this has not yet been confirmed, when it does, we will continue to keep businesses updated on the risks they pose by not complying with the standards.
How TEAM Energy Can Help
Our experts can help guide you on transitioning from SECR reporting to UK SRS. Our team will provide:
Expert guidance: We will review the latest UK SRS consultation and exposure draft updates from the UK Government and keep you fully informed of any compliance deadlines you will need to prepare for.
Practical support:
- Review your existing business operations to define the organisational boundaries, and establish where the responsibility lies for Scopes 1, 2 and 3 emissions across your operational infrastructure.
- Calculate a Greenhouse Gas Footprint and work with you to set a realistic baseline for your operations, taking into consideration anomalies from periods where normal business operations have been affected.
- For each item in Scope 1, 2 and 3 we will select or determine an appropriate methodology from the source data available to calculate the associated carbon emissions. We will also help you establish a data collection framework and methodology to support the ongoing collection of your consumption data for GHG reporting.
- Determine your target ensuring it is appropriate and realistic to your organisation.
Technology integration: Connect with our Carbon Reporting Software and Energy Management Software platforms to capture Scope 1, 2 and 3 emissions, energy consumption, water and waste data to secure evidence for your reporting requirements.
Our Sustainability Reporting software solution will automate the collection and consolidation of your ESG data, supporting tech-enabled reporting to meet your future UK SRS compliance.
- Integrating your ESG data with your financial systems, to enable your business to disclose both financial and sustainability data when complying with the UK SRS.
Learn about our Carbon Reporting Software
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UK SRS FAQs
Yes, SECR will phase out for large companies once UK SRS becomes mandatory.
Consultation closed Sept 2025; final standards available late 2025. It will become mandatory for in scope organisations from the financial year of 2026/27.
Governance, climate risks/opportunities, scenario analysis, Scope 3, forward-looking information, and potentially assurance.
Yes, voluntary adoption is allowed from late 2025, ahead of the official mandate.
UK SRS will apply to approximately 20,000–27,000 organisations, including:
- 18,000–24,000 large UK companies (turnover > £54m, assets > £27m, >250 employees)
- 2,000–2,500 listed companies under FCA rules
- Large LLPs and FCA-regulated financial firms.
Large UK entities and listed companies meeting the size threshholds unless expempt.
Prepare your organisation for UK SRS by requesting a demo of our Carbon Management Software today