UK Sustainability Reporting Standards (UK SRS)

Preparing your organisation for mandatory UK sustainability and climate reporting starting in 2026 and beyond

Roohi Ghelani

Principal Consultant

Renata Ulloa

Senior Consultant

Introduction to the UK SRS
Latest updates
Timeline
Key benefits
Comparison to other standards
5 steps to prepare
Anthesis support
Contact us

Share this guide

An Introduction to the UK SRS

From 2026 onwards, the UK will begin phasing in mandatory climate-related financial disclosures under the UK Sustainability Reporting Standards (UK SRS). These disclosures are grounded in the global International Sustainability Standards Board (ISSB) framework, specifically IFRS S1 and IFRS S2, and are being adopted in the UK as UK SRS S1 and S2.

This guide addresses frequently asked questions about the UK SRS and the proposed mandatory climate disclosure framework. It provides insight on the requirements and helps prepare your organisation for implementation, whether you’re getting started or already progressing in your sustainability reporting journey.

What is the UK SRS?

The UK SRS forms 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.

The UK SRS are a new set of standards 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 UK SRS 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 UK Government has proposed minor adjustments to tailor the standards for the UK context, while maintaining close consistency with the original ISSB framework. These standards are a central part of the UK’s broader push to embed sustainability and climate-related transparency into the corporate reporting landscape.

What is the UK SRS S1 and S2?

The UK SRS S1 and S2 are the UK-endorsed versions of the ISSB standards: IFRS S1 and IFRS S2.

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 the entity’s enterprise value over the short, medium, or long term. Key features include:

Disclosure of governance, strategy, risk management, and metrics and targets
A focus on material sustainability topics beyond just climate (e.g. social and nature-related issues)
Integration with general-purpose financial reporting

UK SRS S2 builds on S1 but focuses specifically on climate-related risks and opportunities. It is aligned with the Task Force on Climate-related Financial Disclosures (TCFD) framework and requires entities to disclose:

How climate risks and opportunities affect their strategy and business model
Governance and oversight of climate issues
Climate-related metrics and targets, including greenhouse gas emissions (Scopes 1, 2, and 3)
Scenario analysis and transition planning

What are the latest UK SRS updates?

On 25^th June 2025, the UK Government released the exposure draft of the UK SRS S1 and S2, which is closely aligned with ISSB’s IFRS S1 & S2, including six minor UK-specific amendments:

Removal of Initial Transition Relief: Reporting entities will be required to publish their sustainability disclosures at the same time as their financial statements from the first reporting year. The ISSB’s original one-year delay allowance has been removed.
Extension of Climate-First Transition Relief: Entities may focus solely on climate-related disclosures for the first two years, with broader sustainability-related risks and opportunities to be reported from Year 3 onwards.
Flexibility in Industry Classification: The requirement to use the Global Industry Classification Standard (GICS) has been removed. Entities may now use any appropriate industry classification standard to disaggregate disclosures, such as those for financed emissions.
No Prescribed Effective Date: The UK SRS will be made freely available for voluntary use upon endorsement. The mandatory application will depend on a separate consultation on the implementation pathway.
Voluntary Reference to SASB Standards: The previously mandatory use of 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: Entities will only be bound by the transition relief restrictions in IFRS S1 and S2 once mandatory reporting requirements apply to them. Voluntary early adopters can apply the full set of reliefs during their first reporting year. Reliefs cover areas such as:
- Greenhouse gas emissions methodologies
- Disclosure of Scope 3 emissions
- Provision of comparative information

These drafts are part of a trilateral consultation package, alongside:

Mandatory climate transition plans (for financial institutions & FTSE 100 companies)
Oversight of sustainability assurance providers

UK SRS Timeline

What are the benefits of reporting in line with the UK SRS?

Key benefits of climate-related reporting in line with UK SRS include:

Aligns with Global Standards: The UK SRS positions UK businesses alongside global peers in key markets by aligning closely with the ISSB frameworks (IFRS S1 and S2). This ensures your reporting meets international expectations.
Consistency and Clarity: Built on robust, accounting-based principles, the UK SRS promotes consistent, comparable, and high-quality disclosures across organisations and sectors. This clarity enables businesses to better understand their sustainability-related risks and opportunities, helping to pinpoint areas for strategic improvement.
Investor Transparency: UK SRS disclosures provide investors with vital, decision-useful insights into your organisation’s climate-related risks, transition planning, and sustainability performance, increasing investor confidence and supporting long-term value creation.
Drives Sustainable Performance: Integrating the UK SRS into your business enables you to embed sustainability into corporate strategy, improve internal risk management, uncover efficiencies, spark innovation, and boost resilience. This helps future-proof your business and drive measurable ESG performance.
Builds Stakeholder Trust: Transparent and credible reporting builds trust with stakeholders, including customers, employees, investors, regulators, and communities. It aligns with growing ESG and responsible investment trends, demonstrating your commitment to meaningful climate action and corporate accountability.
Enhanced Data Management and Insights: Using dedicated digital platforms to manage UK SRS-aligned disclosures improves reporting efficiency and data integrity. A robust software solution enables real-time data analysis, reduces human error, and enhances the accuracy and strategic value of your disclosures, empowering better, faster decisions.

How does the UK SRS compare to other sustainability reporting standards?

Similar to the ISSB standards, the UK SRS focus on the financial materiality of sustainability-related risks and opportunities over the short, medium, and long term. UK SRS S1, which mirrors IFRS S1, establishes the overall framework for sustainability-related disclosures. UK SRS S2, aligning with IFRS S2, specifically addresses climate-related risks and opportunities.

In contrast to the EU’s Corporate Sustainability Reporting Directive (CSRD), which applies a double materiality approach—assessing both financial materiality (how sustainability matters impact the entity) and impact materiality (how the entity impacts the environment, people, and society)—the UK SRS applies a single materiality lens. It focuses primarily on financial materiality, providing investor-focused information to help assess how sustainability and climate-related risks and opportunities may affect an entity’s financial performance.

While the CSRD and the Global Reporting Initiative (GRI) emphasise broader stakeholder interests and impact materiality, the UK SRS, like the ISSB standards, is designed to meet the information needs of investors. The GRI supports a stakeholder-oriented reporting model that highlights an organisation’s impact on the environment, society, and the economy.

What sets the UK SRS apart is not only its alignment with international investor-focused frameworks but also its integration into existing UK company law and governance structures. This alignment helps ensure that sustainability-related disclosures are more seamlessly embedded within companies’ standard financial reporting and decision-making processes.

5 key steps to prepare for the UK SRS

Conduct a Readiness Assessment
Benchmark your current sustainability reporting practices, processes, and internal capabilities against IFRS S1 and S2, as well as anticipated UK SRS requirements, to identify gaps and areas for improvement.
Develop a Compliance Roadmap
Create a clear, phased implementation plan with defined timelines, responsibilities, and priority actions to ensure timely and effective alignment with UK SRS standards.
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.
Establish Governance and Oversight
Integrate sustainability considerations into board-level and executive management oversight, ensuring clear accountability for managing risks and opportunities.
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.

The UK SRS represents more than a compliance exercise – it’s a catalyst to integrate sustainability into decision-making and drive long-term value creation.

Renata Ulloa, ESG & Reporting Senior Consultant

How Anthesis can help

Anthesis supports organisations in navigating the complexities of ISSB-aligned frameworks, combining deep advisory expertise with robust tools to streamline the implementation of IFRS S1 and S2 standards. We work with clients across all levels of reporting maturity—whether just starting or seeking to enhance existing disclosures.

Drawing on our extensive experience across all areas of sustainability, industries, geographies, and the full value chain, Anthesis offers a comprehensive suite of ISSB-aligned services tailored to help businesses meet evolving reporting expectations with confidence and clarity.

Gap Analysis and Roadmap to Compliance
Anthesis helps organisations identify and address gaps in their current ESG reporting practices. Leveraging expert insight, we provide a clear roadmap to ensure compliance and alignment with ISSB-aligned reporting standards.
Advisory on Data Controls and Governance
We offer tailored guidance on the specific data points and KPIs required for compliance. Our support includes developing assurance-ready methodologies and robust reporting controls, enabling consistent, efficient, and repeatable ESG reporting year after year.
Financial and Double Materiality Assessments
Whether aligning with IFRS S1/S2 or following best practice double materiality approaches, our proven process helps organisations identify and prioritise sustainability-related risks and opportunities. We use a comprehensive risk and opportunity screening framework, aligned with ISSB requirements, to ensure relevance and strategic focus.
Reporting Implementation Support
Anthesis supports the preparation of your ESG disclosures to ensure they align with all relevant standards. Our experts guide you through the full implementation process.
ESG Data Management Support
Anthesis’ digital tool, MERO, supports clients in navigating two key ESG challenges: managing complex data requirements and adapting to a rapidly evolving regulatory landscape. MERO streamlines the collection, analysis, and reporting of ESG data, offering a tailored solution aligned with each client’s specific needs. Built to support compliance with ISSB frameworks, MERO enables efficient and accurate ESG data management and reporting.
Expertise Across Key Reporting Areas
We offer deep knowledge and support across all critical ESG reporting dimensions, including:

discover our esg reporting solutions

Get in touch

We are the world’s leading purpose driven, digitally enabled, science-based activator. And always welcome inquiries and partnerships to drive positive change together.

We’d love to hear from you

Loading…