UK Sustainability Reporting Standards (UK SRS)
Your guide to the UK Sustainability Reporting Standards, what they are and the practical steps needed to turn regulatory preparation into business value.
Table of Contents
- What are the UK SRS?
- What do UK SRS S1 and S2 require?
- The FCA's decision for UK Listed entities
- How does UK SRS differ from IFRS S1 and S2?
- UK SRS timeline
- What are the business benefits of UK SRS?
- UK SRS vs CSRD
- 5 steps to prepare
- Turning reporting into business value
- Contact us
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Like more than 40 other global jurisdictions, the UK is phasing in requirements for disclosure against the International Sustainability Standards Board (ISSB) framework.
The UK formally adopted IFRS S1 and IFRS S2 as the UK Sustainability Reporting Standards (UK SRS S1 and UK SRS S2) in July 2025. For listed companies, the Financial Conduct Authority (FCA) has announced its UK SRS implementation requirements. For other organisations, broader implementation is still being developed, with the UK Government expected to consult on extending UK SRS-based disclosure requirements from 2027.
As a result, now is the right time for organisations to assess applicability, understand potential requirements and build readiness.
Many organisations are approaching UK SRS as a new compliance requirement. In practice, its significance is much broader. By requiring organisations to identify, assess and disclose sustainability-related risks and opportunities through a financial lens, UK SRS strengthens the connection between sustainability, risk management, capital allocation, investor communications and strategic decision-making.
The organisations that will realise the greatest benefit from UK SRS preparation are those that treat it as more than a reporting exercise. The process creates an opportunity to improve how sustainability-related risks and opportunities are identified, prioritised and managed across the business, helping organisations allocate resources more effectively, strengthen resilience and create long-term business value. It can also help organisations better understand where they create impact, focus effort on the outcomes that matter most and strengthen the connection between sustainability performance and business performance.
What are the UK Sustainability Reporting Standards?
The UK SRS form a key part of the UK Government’s Sustainability Disclosure Requirements (SDR) framework, which aims to enhance transparency in corporate sustainability practices, standardise sustainability reporting and combat greenwashing through clear and credible sustainability labels. They are designed to guide how organisations assess and disclose information about their sustainability-related risks and opportunities, with an initial focus on climate-related disclosures.
The standards are closely aligned with the ISSB standards, namely IFRS S1 (General Requirements for Sustainability-related Financial Disclosures) and IFRS S2 (Climate-related Disclosures). This alignment ensures that UK organisations report using a globally consistent, transparent and decision-useful framework for investors and other stakeholders.
The standards are a central part of the UK’s broader push to embed sustainability and climate-related transparency into the corporate reporting landscape, helping position the UK as a global leader in sustainable finance.
What do UK SRS S1 and S2 require?
UK SRS S1
UK SRS S1 sets out the overall framework for sustainability-related disclosures. It requires organisations to provide information about all sustainability risks and opportunities that could reasonably be expected to affect enterprise value over the short, medium or long term (i.e. that are financially material). Key features include:
- Disclosure against four pillars of governance, strategy, risk management, and metrics and targets.
- A focus on material sustainability topics beyond climate, including social and environmental issues.
- Integration with general-purpose financial reporting.
UK SRS S2
UK SRS S2 builds on S1, focusing specifically on climate-related risks and opportunities. It is aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework and requires disclosure of:
- How climate risks and opportunities affect strategy and business model.
- Governance and oversight of climate issues.
- Climate-related metrics and targets, including Scope 1, 2, and 3 emissions.
- Scenario analysis and transition planning.
Key takeaways: the FCA’s decision for UK Listed entities
In September 2026, the FCA published its final listing rules on sustainability disclosures (Policy Statement PS26/19), replacing the existing TCFD-aligned requirements with requirements based on UK SRS S1 and S2. The listing rules apply to the majority of listed companies in the UK, with a few exceptions.
They apply to accounting periods beginning on or after 1 January 2027, with first reporting in 2028, and include a 1-year transitional relief for Scope 3 and a 2-year relief for S1 non-climate disclosures.
The rules apply on a “comply or explain” basis to all elements of UK SRS, including S2 climate disclosures, S1 non-climate disclosures and Scope 3 emissions. The “comply or explain” basis means companies must either follow the UK Sustainability Reporting Standards (UK SRS) or publicly state which requirements were not met, the reasons and the steps they plan to take. Companies must also state whether they have published a climate transition plan and whether their disclosures have been subject to third-party assurance.
How does UK SRS differ from IFRS S1 and S2?
In February 2026, the UK Government published the final UK Sustainability Reporting Standards (UK SRS S1 and S2), including minor UK-specific amendments:
- Removal of deferred reporting relief: The ability to publish sustainability disclosures after financial statements has been removed, meaning reporting entities must publish their sustainability disclosures at the same time as their financial statements.
- Transition reliefs linked to future mandatory requirements: Fixed transition periods have been removed from the standards themselves. The application and duration of transition reliefs, temporary provisions designed to make first-time adoption easier, will instead be determined by the relevant authority when mandatory reporting requirements are introduced.
- Flexibility in industry classification: The requirement to use the Global Industry Classification Standard (GICS) has been removed. Entities may use an appropriate industry classification standard to disaggregate disclosures, such as those for financed emissions.
- No prescribed effective date: The UK SRS are available for voluntary use immediately following endorsement. Mandatory application will be determined through a separate UK Government implementation pathway and the FCA final rules.
- Voluntary reference to SASB standards: The previously mandatory requirement to consider SASB standards for industry-specific disclosures has been made voluntary. Entities may refer to the IFRS S2 Industry-based Guidance, which draws from SASB standards, at their discretion.
- Clarification on application of transition reliefs: Additional clarification has been provided on the use of transition relief and compliance statements, particularly for entities voluntarily adopting the standards before mandatory reporting requirements come into effect. Reliefs cover areas such as climate-first reporting, greenhouse gas emissions methodologies, disclosure of Scope 3 emissions and the provision of comparative information.
UK SRS timeline
- 2023: The UK Government commits to implementing ISSB standards via a UK-specific endorsement process.
- 2024: Initial scoping work begins on UK-specific amendments.
- 2025: Public consultation launched on draft UK SRS S1 & S2. The consultation period closed on 17 September. Final UK SRS S1 & S2 were published in February 2026.
- 2026: The UK Financial Conduct Authority (FCA) launched a consultation on 30 January and announced its final listing rules in September 2026.
- 2027: The UK Government is expected to consult on the rollout of mandatory UK SRS disclosure requirements for non-listed companies.
What are the business benefits of reporting in line with the UK SRS?
Improved understanding of sustainability-related risks and opportunities. Built on robust, accounting-based principles, UK SRS helps organisations identify, assess and prioritise sustainability-related risks and opportunities that could affect long-term business performance. This provides a stronger foundation for strategic planning and decision-making.
More effective capital allocation and business planning. By connecting sustainability-related risks and opportunities to financial performance, organisations can make better-informed decisions about investment priorities, resource allocation and long-term business value.
Meeting investor expectations. The UK SRS positions UK businesses alongside global peers by aligning closely with the ISSB framework. It provides investors with vital, decision-useful information on material sustainability and climate-related risks, opportunities and performance, helping support investor confidence.
Strengthened resilience and long-term business value. Embedding UK SRS principles into business processes helps organisations improve risk management, identify efficiencies, uncover opportunities and strengthen resilience in a rapidly evolving external environment.
Building stakeholder trust. Transparent and credible sustainability reporting helps organisations build trust with investors, customers, employees, regulators and wider stakeholders while demonstrating effective governance and accountability.
Better data and decision-making. Using dedicated systems and processes to support UK SRS reporting can improve data quality, increase reporting efficiency and provide more reliable insights to support business decisions.
UK SRS vs CSRD: What’s the difference, and can you report under both?
Like the ISSB standards, the UK SRS focus on the financial materiality of sustainability-related risks and opportunities over the short, medium, and long term.
The main distinction between the UK SRS and the EU’s CSRD is their approach to materiality and the stakeholders this is intended to serve. The UK SRS applies a single materiality lens, focusing on how sustainability-related matters may affect an organisation’s enterprise value and financial performance, designed predominantly for investors. By contrast, the CSRD requires a double materiality assessment, which considers both financial materiality (how sustainability matters affect the organisation) and impact materiality (how the organisation affects people, society, and the environment). Because it assesses both financial and impact materiality, double materiality is a more comprehensive assessment approach and provides results for all stakeholders.
For many organisations, this will not be an either-or decision. Multinational businesses may be required to report under both UK SRS and CSRD, meaning they must navigate overlapping but distinct reporting requirements. In practice, organisations can often leverage the financial materiality component of a CSRD double materiality assessment to inform UK SRS reporting. However, aligning methodologies, evidence, governance processes and reporting outputs across both frameworks can be complex and often requires specialist guidance to ensure an efficient, robust and defensible approach.
While the CSRD and the Global Reporting Initiative (GRI) place greater emphasis on stakeholder impacts and broader sustainability outcomes, the UK SRS, like the ISSB standards, is primarily designed to meet the information needs of investors. The GRI supports a stakeholder-oriented reporting model that focuses on an organisation’s impacts on the environment, society and the economy.
How to prepare for UK SRS reporting: Five steps
Having supported organisations through complex sustainability reporting requirements, including UK SRS, ISSB, TCFD and CSRD implementation, we have found that the biggest challenges rarely arise from the disclosure requirements themselves. More often, organisations struggle with data availability, financial quantification, governance, cross-functional coordination and determining which sustainability-related risks and opportunities are truly material to the business.
At the same time, the organisations that gain the greatest value from UK SRS preparation are those that treat it as more than a compliance exercise. The process can help strengthen risk management, improve decision-making, inform capital allocation and identify sustainability-related opportunities that support long-term business performance.
We have identified five practical steps to prepare for UK SRS reporting effectively, efficiently and in a way that delivers value beyond compliance.
5 key steps
1. Conduct a readiness assessment
Benchmark your current sustainability reporting practices, processes, and internal capabilities against UK SRS S1 and S2 to identify gaps and areas for improvement.
Most organisations find the greatest gaps exist in risk quantification, specifically linking climate and sustainability-related risks to financial outcomes such as capital expenditure, revenue, asset values and balance sheet impacts in a way that is robust and audit-ready. At this early stage, it is vital to engage colleagues from finance, risk, legal, operations and other functions, as existing systems and processes may already support UK SRS readiness.
2. Develop a practical implementation roadmap
Create a phased implementation plan that prioritises the actions most critical to both regulatory readiness and business value. This typically includes materiality assessment, governance design, data improvement, risk quantification, and preparation for future assurance requirements.
A clear roadmap helps organisations sequence activities, allocate resources effectively and focus effort where it can have the greatest impact.
3. Identify material sustainability-related risks and opportunities
Perform a materiality assessment aligned with your business model and value chain to determine financially material sustainability-related risks and opportunities. Most of our clients are undertaking double materiality assessments because they are subject to CSRD, or because they recognise the strategic value of understanding how sustainability issues affect the business and how the business affects people and the environment.
It is often possible to design a materiality assessment that supports both CSRD and UK SRS requirements. However, aligning single and double materiality approaches requires careful methodology design, broad subject matter expertise, and robust governance to ensure materiality judgements are defensible and consistent.
Beyond compliance, the materiality process can help organisations identify emerging sustainability-related opportunities, prioritise investment and focus resources on the issues most likely to create long-term business value.
4. Establish governance and oversight
Integrate sustainability considerations into board and executive decision making, with clear accountability for oversight of sustainability-related risks and opportunities.
Strong governance is often the key enabler of effective implementation, helping secure the resources, investment and organisational alignment required for successful reporting. This is particularly important now that sustainability-related risks and opportunities are increasingly being considered alongside broader business and financial performance.
5. Strengthen data systems and controls
Enhance your data infrastructure and implement robust internal controls to support the collection, validation and reporting of consistent, reliable and auditable sustainability metrics and targets.
While UK SRS may not require mandatory assurance, many organisations are voluntarily seeking assurance over sustainability disclosures to increase confidence in reported data, strengthen internal controls, support board oversight and prepare for evolving stakeholder expectations. Furthermore, the UK FCA Listing Rule requires a public statement on whether assurance has been conducted over their UK SRS disclosures.
Organisations that start early are best positioned not only to meet future reporting requirements, but also to use sustainability information as a tool for building long-term business resilience and value.
Why this matters: Turning reporting requirements into business value
Whether you are preparing for UK SRS reporting for the first time or navigating multiple sustainability reporting requirements across different jurisdictions, successful implementation requires more than technical reporting expertise. Organisations must connect sustainability, finance, risk, operations and governance functions to create a reporting approach that not only supports compliance but also delivers business value.
Anthesis connects those teams and frameworks in one engagement, with:
- End-to-end support from readiness assessments and materiality through to implementation, reporting and disclosure preparation
- Independence from audit-related constraints, allowing us to provide hands-on implementation support throughout the reporting journey
- Deep expertise across UK SRS, ISSB, CSRD and double materiality, helping organisations navigate both standalone and overlapping reporting requirements efficiently and consistently
- Sustainability experts across climate, decarbonisation, nature, human rights, supply chains and sustainable finance, bringing the technical and sector expertise needed to make robust materiality and reporting judgements
- A value-led approach that helps organisations use reporting to improve risk management, capital allocation, investment decisions and long-term business resilience
- Practical implementation experience spanning data governance, risk quantification, scenario analysis, target setting, reporting and assurance preparation
- In-house communications and reporting specialists who help organisations communicate sustainability performance clearly and effectively to investors, regulators and other stakeholders
Our role is not simply to help organisations produce compliant disclosures. We help clients use sustainability reporting to make better decisions, strengthen resilience, identify opportunity and create long-term business value.
Contact our experts to discuss your UK SRS applicability, reporting scope, readiness priorities and how to maximise the value of the reporting process.
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