UK Sustainability Reporting Standards (UK SRS)

Overview of UK SRS

Introduced: Proposed standards under consultation and pending finalization
Effective from: Anticipated voluntary use in early 2026 ahead of future regulatory requirements.
Region(s): United Kingdom (UK)

About UK SRS

The UK Sustainability Reporting Standards (UK SRS) are a new set of reporting standards being developed by the UK government to improve consistency, comparability and decision-usefulness of sustainability-related disclosures by UK companies.

These standards are designed to provide a sustainability reporting framework aligned with global best practices, drawing on the International Sustainability Standards Board’s (ISSB) IFRS S1 and IFRS S2 standards while incorporating specific UK considerations.

UK SRS aims to support transparency on environmental, social and governance (ESG) risks and opportunities, helping investors, stakeholders and markets make more informed decisions.

Basis of Standards

UK SRS is built on the international corporate sustainability reporting baseline established by the ISSB’s IFRS sustainability disclosure standards, notably:

• IFRS S1 – General Requirements for Disclosure of Sustainability-related Financial Information
• IFRS S2 – Climate-related Disclosures

The UK versions (UK SRS S1 and UK SRS S2) adapt these global standards to reflect UK regulatory and market contexts.

Current development status

A public consultation on the exposure drafts of UK SRS S1 and UK SRS S2 ran from 25 June 2025 to 17 September 2025, allowing stakeholders to comment on proposed requirements and implementation.

Following this consultation, the UK government is analysing feedback with the objective to publish finalised versions of the standards for voluntary use in early 2026. Subsequent regulatory steps, including mandatory application and integration into UK Listing Rules, will be considered by the government and the Financial Conduct Authority (FCA).

Governance and oversight

Technical Advisory Committee (TAC)

An independent committee tasked with reviewing the ISSB sustainability standards and recommending endorsement or modifications for UK adoption. Its final report in late 2024 supported endorsement of IFRS S1 and S2 with minor UK-specific adjustments.

Policy and Implementation Committee (PIC)

A cross-government and regulator body coordinating potential implementation and assessing interactions with existing UK reporting frameworks. Its membership includes the FCA, Financial Reporting Council (FRC), Bank of England, HM Treasury and relevant government departments.

Purpose and benefits

UK SRS is created to:

• Promote consistent, comparable sustainability disclosures across UK-listed and large private companies.
• Support investment decisions by providing reliable sustainability-related financial information.
• Align UK reporting frameworks with global standards while preserving regulatory relevance to UK markets.

Anticipated requirements (Subject to final regulation)

While final obligations and thresholds will be determined through forthcoming regulation, UK SRS is expected to cover disclosures related to:

• Governance of sustainability risks and opportunities.
• Strategy integrating ESG considerations into business plans.
• Risk management for material sustainability-related issues.
• Metrics and targets, including climate-related performance and financial implications.

As final standards are published and adopted into law, organisations may be required to report sustainability information alongside financial reporting cycles.

Implementation timeline

Who must comply

At present UK SRS does not yet carry mandatory reporting requirements. Final regulatory text will specify:

• Types of entities (e.g., listed companies, large private companies)
• Materiality thresholds
• Implementation timelines

Organizations should monitor government and FCA guidance closely as standards are adopted into UK regulation.